Another Strong Year for SBA Lending in FY 2013
Wednesday, October 30, 2013
by Jeanne Hulit, Acting SBA Administrator
Small businesses are the engine of our economy, and they
create about two out of every three net new private sector jobs in the United
States. At the U.S. Small Business Administration (SBA), our mission is to make
sure that small business owners have the tools they need to do what they do
best—providing great products and services, creating jobs and serving America’s
communities in the process.
At SBA, one of the most critical things we do is make
sure that small business owners have access to the capital they need to start
and grow their business. Since President Obama took office, SBA has supported
more than $126 billion in lending to more than 260,000 small businesses and
entrepreneurs. This includes two record years of delivering over $30 billion
annually in loans in FY 2011 and FY 2012.
FY 2013 has been another strong year for SBA lending,
cumulatively supporting more than $29 billion in lending to America’s small
businesses. We had an incredibly successful year and are proud of the work we
did to support small businesses in this country.
Let’s take a quick look at some relevant numbers:
- 7(a) loans, SBA’s flagship lending
program that can be used for most business expenses including working
capital, had a strong year—supporting $17.9 billion loans to more than
46,000 small businesses in FY 2013.
- The Small Loan Advantage (SLA)
program, which is a key 7(a) loan initiative designed to expand access to
loans under $350,000, was one of our biggest success stories. SBA has
significantly reduced paperwork for the SLA program and expanded our pool
of lenders—these changes have resulted in a more than 300 percent increase
in SLA loans and an over 700 percent increase in the number of lenders
using the program. In FY 2013, SBA backed almost 5,000 loans for nearly
$745 million through the SLA program.
- CAPlines, our program that
provides working capital lines of credit designed to help small businesses
with their short-term working capital needs, made 682 loans for more than
$500 million. In two full fiscal years since we re-designed the program,
we have made 1,200 loans after only making 1,300 over 15 years—a
significant increase that speaks to the success of this program.
- In FY 2013, SBA also supported
more than 7,700 504 loans, which provide small businesses with long-term,
fixed-rate financing to acquire real estate and major fixed assets, for a
total of more than $11.7 billion. Although this is a slight decrease
compared with FY 2012, this decrease demonstrates the importance of SBA’s
504 Refinancing Program, which temporarily allowed small business owners
to use our 504 program to refinance commercial real estate and other fixed
assets and gave SBA a record year for 504 lending in FY 2012. That program
was authorized by the Small Business Jobs Act and expired in 2012, but a
one year extension of the program was included in the President’s FY14
This is just a snapshot of SBA’s accomplishments in the
fiscal year that just ended. We are proud of the work we are doing in helping
America’s small businesses grow and thrive. Because at the end of the day, our
nation’s small business owners and entrepreneurs know what to do—they just need
the tools to do it—and that’s where SBA fills a critical role in helping small
business owners and entrepreneurs achieve their dreams. And our neighborhoods,
communities, and economy are stronger as a result.
For more information about SBA programs and services,
visit www.sba.gov. For contact information for
your local SBA office, visit www.sba.gov/localresources/index.html.