The U.S. SBA backed Small Business loans recorded a new level in the current fiscal ending Sept 30th with over $30 billion loans issued. The metropolitan Portland region received $308 million of loans and Southwest Washington received $42 million. The total loans for the Portland-Vancouver area are at a record new level. The SBA has backed $211 million for Portland-Vancouver loans in fiscal year 2010 and $203 million in 2009.
SBA Portland office participated in 873 loans during the last fiscal and this includes 308 in Cowlitz, Skamania, Southwest Washington’s Clark and Wahkiakum counties. It is astonishing to see such a loan boom in the face of business complaints about shortage of capital. A big factor for the loan growth is a stimulus related bill that temporarily eliminates fees and broadens guarantee to cover 90 percent of loan value other than the usual 75 percent.
The Small Business Jobs Act expired at the end of 2010 or at the first quarter of federal fiscal year. In that single quarter, loan amount given out by the SBA is $12 billion that amounts to 30 percent of year’s total. The quarterly amount is more than four times the dollar volume of the same quarter in 2009.
One third of loans got issued in October to December time period. Loan volumes remained lean during January-to–March quarter but it has been increasing since then. The Portland area loan programs see participation from 84 lenders and third-party loan brokers.
Nationally, $30 billion in SBA-backed loans is a definite surge from the $28.5 billion in the year 2007. Two-thirds of this year’s granted money went into approximately 53,000 loans offered under SBA’s 7(a) general business loan program. Also, 8,000 small business loans, valuing $10 billion got approval under the 504 program of the SBA.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org