Small Business Administration loan programs successfully made largest dollar volume available to business owners in FY 2012. The agency supported $30.25 billion in loans to small business owners that are operational in the U.S. It is because of the Small Business Jobs Act of 2010 that incentives could be made available to business owners and so loan amount started to surpass with the start of FY 2011.
The high pace of SBA loan making is healthy sign for the economy. The credit market goads the lending pace and ensures that small business financing reaches out to intended businesses that wish to grow, expand, establish and create new jobs. This has been a record year for guaranteeing Certified Development Company (504) loan program. It supported $15.09 billion in small business credits.
Strong performance of the 504 loan refinancing program too helped small businesses grow. This refinancing program has been part of the incentive package under Jobs Act. It is responsible for 26 percent of 504 program loans and 34 percent of dollar volume in grants. Such strong numbers indicate that businesses and lending communities are regaining in confidence in the current economic condition of the country.
Encouraging results too came to the fore due to streamlining of Small Loan Advantage (SLA) and Community Advantage programs. The Community Advantage program doled out 188 loans that amounted to $25.2 million in FY 2012. SLA too made 820 loans amounting to $105.6 million in FY 2012. The FY 2012 has seen 1,300 lenders returning back to SBA lending and so more access points got opened for small businesses to do business.
In the fiscal year ending Sept 30th, 7_(a) General Business Loan program made $15.15 billion available to small businesses and the 504 Certified Development Company program made $15.09 billion in small business lending.
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