SBA loan volume under popular loan programs of Fed that guarantees funds to small businesses was down in Arizona during 2012 compared to 2011. The dollar amount loaned through SBA programs went down from previous year’s lending.
The dollar amount made available through 7(a) and 504 programs of the SBA remained $478 million during the year ending Sept. 30, 2012 compared to $540 million in fiscal 2011. However, it is found that the 2012 figure is still higher compared to the 2010 loan figure that totaled $368 million.
It is also seen that the number of loans closed did not follow the same trajectory. During 2010, number of loans made were 1,200, reached 1,300 in 2011, and then fell to 1,000 in 2012.The silver lining is that after 2010, the loan-figure increased and never declined. This is good-sign for small business owners.
The SBA 504 and 7(a) programs play an active role in guaranteeing loans to small businesses. Commercial banks gives out grants to business owners under these programs. Also, the Small Business Jobs Act of 2010, guaranteed 90 percent of the loans that lenders granted and simultaneously waived fees for borrowers.
In Arizona, during the last three months, SBA loans totaled to $140 million that is far greater than the the normal $100 million that the State lends per quarter.
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