Alaska SBA Loan Volume Continues to Rise
Anchorage Alaska - U.S. Small Business Administration (SBA) lending volume in Alaska continued to increase significantly through the second quarter of the federal government's 2010 fiscal year ending March 31, 2010. Compared to the first two quarters of 2009, the total dollar volume of SBA loans increased almost three fold from $10,290,835 in 2009 to $27,114,800 in 2010.
The American Recovery & Reinvestment Act of 2009 (ARRA) signed by President Obama on February 17, 2009, provided far reaching assistance to small businesses, including an increase in the guarantee on all loans to 90 percent and the elimination of guaranty fees, resulting in substantial savings for small business borrowers.
"Since the Act was signed, SBA nationally has supported more than $19 billion in lending to small businesses through its two largest loan programs and seen its average weekly dollar volume increase by more than 75 percent in comparison to the weeks before the Recovery Act," said Regional Administrator Calvin Goings. "In Alaska, SBA has approved over 48 million since the Act was implemented."
"We think this is a good sign for the Alaska economy and hope this momentum continues in the coming months," said Alaska District Office SBA District Director Karen Forsland. "The increased activity through the second quarter of FY2010 certainly affirms that money remains available to qualified borrowers."
To further assist small businesses, President Obama last month extended the ARRA fee waiver and loan guarantee provisions. Fee elimination on SBA loans means decreased costs to the small business borrower, while maintenance of the 90 percent federal guarantee to banks means a continued reduction in risk to SBA lenders.
The benefit of SBA loans on the Alaska economy can be measured by the number of jobs created or saved by the influx of much needed capital to small businesses. Since the Stimulus Act was signed 1394 jobs were created or retained in Alaska.
Alaska Growth Capital Bidco Inc. continued to be the top SBA lender in the state through the second quarter with loans totaling almost $12 million. Other top lenders in the state included Alaska Pacific Bank and Wells Fargo Bank.
For more information about all of the SBA's programs for small businesses in Alaska, call the SBA Office at 800-755-7034 or helpline at 1-800 U ASK SBA, or visit the SBA's extensive web site at www.sba.gov/ak