Small Businesses Receive
100,000 SBA-Backed Loans in 2006
Small businesses turned to the U.S. Small Business Administration
for commercial financing in record numbers in fiscal year 2006,
setting records for both the number of loans and the dollars
loaned, SBA Administrator Steven C. Preston said.
The SBA backed a net 100,197 loans totaling $19.1 billion under
its two primary small business loan programs during the 12 months
ending on Sept. 30. Both the number of loans and the dollar
amount is a single-year record for the agency. The previous
records were set last year, when SBA provided a net 94,554 loans
worth $18.1 billion under the same two programs.
“We are very pleased with the small business lending performance
this past year and for each of the previous five years,”
said Administrator Preston. “These numbers reflect the
confidence American entrepreneurs have in the U.S. economy as
well as in the SBA lending program that backs their loans. I
am thankful to our lenders and resource partners for their steadfast
commitment to small businesses.
“The SBA’s loan programs have continued to set records
every year,” Preston said. “Before FY 2002, the
programs never produced more than 42,000 loans combined. Since
then, loan volume has more than doubled.”
A third of the loans in FY 2006 went to minority borrowers,
32 percent were to new start-up businesses, 22 percent were
to businesses owned by women and 21 percent were to businesses
located in rural areas. Increases were recorded in loans to
African Americans, Hispanics, Asian Americans and Native Americans.
“SBA is committed to continuing to increase our support
for underserved businesses and communities,” Preston said.
Preston noted that borrower fees on basic SBA 7(a) loans under
$150,000 are the same as they were in 1985.
“It is clear the changes we have made to improve our lending
programs have not only worked, but also have provided the foundation
for even higher lending levels in the future,” said Preston.
Both primary loan programs set records this year. The 7(a) loan
guaranty program – most often used for working capital
– produced 90,477 loans worth $13.46 billion. The Certified
Development Company, or 504, program, which is used for the
purchase of real estate and fixed assets, provided 9,720 loans
worth $5.61 billion.
For details on the SBA’s lending programs, visit www.sba.gov.
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