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SBA Lending Activity in FY 2017 Shows Consistent Growth

Nationally, 7(a) loan volume reaches more than $25.44 billion, 504 loan totals continue to increase, minority lending reaches $9.58 billion In SBA Alaska District, overall loan volume reaches $75.78 million


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ANCHORAGE, Alaska – The U.S. Small Business Administration (SBA) announces Fiscal Year 2017 (FY 2017) lending numbers showing increasing loan levels in small business lending through the 7(a) and 504 loan programs, as well as increases in lending to women, veterans and emerging communities. 

“The SBA Loan Guarantee Program allows lenders to say ‘yes’ to small business owners in circumstances they wouldn’t be able to otherwise,” SBA Alaska District Director Nancy Porzio said. “Our team works hard to inform lenders about the SBA program, educate entrepreneurs about financing, and match lenders and small business owners together.”

The following outlines national loan numbers and trends along with local lending highlights for the SBA Alaska District, which serves the entire state of Alaska.

Nationally, the SBA approved more than 68,000 loans in the 7(a) and 504 loan programs during FY 2017.  These programs provided more than $30 billion to small businesses. 

Locally in the SBA Alaska District, the SBA approved a total of 114 loans in the 7(a) and 504 loan programs during FY 2017 totaling $61.83 million.

 

SBA 7(a) Loan Program

The SBA’s flagship loan program, referred to as 7(a), provides small businesses with guaranteed loans covering the vast majority of small business needs including working capital, fixed and intangible asset financing, as well as refinance and export support through term and revolving loans. 

During FY 2017, the 7(a) program supported a consistent number of loans – more than $25.44 billion combined across 62,430 loans. The SBA continues to streamline and improve access to its loan program for small loans and emerging communities, delivering more than $5 billion in smaller loans of $350,000 or less in FY 2017.

In the SBA Alaska District, the 7(a) program supported more than $46.5 million combined across 100 loans.

 

SBA 504 Loan Program

504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets, and are available through Certified Development Companies (CDCs), SBA’s community-based partners.  In FY 2017, the 504 program remained at zero subsidy and grew to $5 billion in loan volume. 

In the SBA Alaska District, the 504 program provided $15.34 million in loans to local small businesses, double the loan volume of 2016.

 

National SBA Lending Trends

During FY 2017, SBA lending had a significant positive effect on businesses that have historically faced greater challenges in obtaining conventional loans. 

Minority business owners received a record combined $9.58 billion in 7(a) and 504 approved lending, or 31 percent of the SBA loan portfolio.

7(a) lending to women-owned businesses – both majority and minority owned – grew in total dollar and volume.  FY 2017 lending exceeded $7.5 billion, an increase of $298 million from FY 2016.

FY 2017 504 lending to women-owned businesses reached $955.2 million, a $277 million increase over the previous fiscal year.

Loans to veterans totaled $1.15 billion for 7(a) and 504 lending.

There has been yearly growth in SBA loan programs, reflecting the important role of its lending partners. In FY 2017, the SBA added 241 new lenders that have contributed to a healthy loan portfolio and one of the lowest loss rates in SBA history.

At the end of the fiscal year, the SBA launched its online lender referral tool Lender Match.  Lender Match is an upgrade to LINC (Leveraging Information and Networks to access Capital). This tool helps connect small business borrowers with participating SBA lenders. 

Lender Match is available to all SBA 7(a) lenders nationwide, including nonprofit lenders that offer free financial advice and specialize in micro lending, loans in the SBA Community Advantage program, and the SBA CDC/504 loan program.  Lenders previously signed up for LINC will continue receiving referrals on the Lender Match platform.

 

SBA Alaska District Lending

The following were the top 5 industries to receive SBA loans in the SBA Alaska District by loan volume.

 

Top 5 Industries by Loan Numbers

  1. Administrative Support & Waste Management & Remediation Services       14

  2. Health Care & Social Assistance                                                                    14

  3. Manufacturing                                                                                                 12

  4. Construction                                                                                                    11

  5. Accommodation and Food Services                                                               11

About the U.S. Small Business Administration

The U.S. Small Business Administration (SBA) was created in 1953 and since January 13, 2012 has served as a Cabinet-level agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.  The SBA helps Americans start, build and grow businesses.  Through an extensive network of field offices and partnerships with public and private organizations, the SBA delivers its services to people throughout the United States, Puerto Rico, the U.S. Virgin Islands and Guam. For more information visit www.sba.gov.

The SBA Alaska District serves the state of Alaska with locations in Fairbanks and Anchorage. SBA Alaska District staff provide resources and services in three areas referred to as “the three C’s” – counseling, capital and contracting. Visit www.sba.gov/ak for more information including resource partners, lenders, workshops, success stories and other resources to help business start, grow and succeed.

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