SBA: Legislation Helps Agency Reach $30 Billion Milestone
For the first time in the agency’s history, the SBA said it has supported more than $30 billion in loans.
During the 2011 fiscal year, which ended Sept. 30, SBA loan approvals supported $30.5 billion (61,689 loans) in lending to small businesses and start-ups through its 7(a) and 504 loan programs, compared to $22.6 billion (60,771 loans) in FY 2010 and $17.9 billion (50,830 loans) in FY2009.
The totals for FY2011 include 53,706 loans totaling $19.63 billion under the agency’s largest loan program, the 7(a) program, and 7,983 loans for a total approval of $4.84 billion, supporting $10.34 billion in small business lending under the 504 Certified Development Co. loan program.
The supported amount for 504 loans includes the SBA share and third party loans that are made by commercial lenders as part of the funding package, according to the agency.
The SBA said the FY2011 total is the highest volume fiscal year in the agency’s history, surpassing the $28.5 billion mark established in FY2007.
SBA Administrator Karen Mills said the agency’s record loan volume was helped along by the Small Business Jobs Act and the Recovery Act, which in part, allowed the agency to raise the guarantee on its 7(a) loans to 90% and waive fees on both its 7(a) and 504 loans.