Small Business Administration gives out record amount of loans

Special to The Freeman

Nov. 6, 2014

WASHINGTON, D.C. —In the past year, the U.S. Small Business Administration 7(a) Loan Program gave out a record amount of loans, and with Wisconsin also increased the number of loans it provided.

According to an announcement released Thursday, by the end of the 2014 fiscal year, SBA had approved 52,044 7(a) loans for $19.19 billion, an increase of 12 percent in number of loans and 7.4 percent in dollar amount compared to fiscal year 2013.

In Wisconsin, 7(a) lending increased 5.6 percent from 1456 to 1537 loans, according to the announcement. The state also led the nation for the second year in the 7(a) Small Loan Program with 384 loans of $350,000 and less were made for $58.7 million, a 67 percent increase in numbers and a 54 percent increase in dollars compared to 2013, according to SBA. Start-up businesses were also the recipient of more SBA loans in Wisconsin, according to the announcement, with 501 given in 2013 and 534 in 2014. However, total 7 (a) dollars loaned in Wisconsin decreased from $552.1 last year to $445 million this year, “this reflects the growth in volume of smaller loans,” according to the SBA announcement.

“As our economy continues to grow and recover, small businesses are the essential fuel to that continued growth,” said SBA Administrator Maria Contreras-Sweet in a statement. “Thanks to the hard work and outreach by our lending partners, SBA staff, and our resource partners, as well as the small business owners themselves, we have been able to put more capital into the hands of our nation’s entrepreneurs. We know that America’s small businesses pack the biggest punch, creating two out of every three net new private sector jobs in the U.S. These small businesses are the cornerstone of our communities, so their success and expansion is vital to the nation’s economic growth.”