More government-backed small business loans are made available to startup and fledging companies across Coachella Valley and Riverside County. During the fiscal year 2011, 126 SBA loans have been doled out that totaled $94.7 million. This is in comparison to 94 loans valued at $48.3 million as per SCORE.
The number of SCORE clients has doubled recently. Since the recession started, more people want to start their own business. 36 counselors in SCORE’s Palm Desert office have helped 1,000 local business owners and entrepreneurs.
Regional President Stu Bailey of Sunrise Bank has approved four SBA 7(a) loans each of $200,000 or less. SBA loans normally account for small portion of small business lending. But this is an important barometer for determining financial institution’s willingness to offer credit to entrepreneurs.
Banks have 15 percent exposure with the U.S. Small Business Administration guarantee of up-to 85 percent of SBA 7(a) loans. More lending of loans took place nationwide according to the SBA during last three months that ended on Dec. 31. SBA 7(a) loans numbering 12,393 have been made totaling $3.8 billion. Last year loan number remained 9,070 that totaled $1.9 billion.
Four SBA 7(a) loans are under consideration by Sunrise Bank for business owners who are interested in starting a coffee shop, solar-installation firm, real estate business and an insurance company. Other companies who are seeking money are taking advantage of low commercial rental rates too along with other opportunities.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to