SBA loans in Eastern Pa. increase in $ value

PHILADELPHIA, PA – The dollar value and number of SBA 7(a) and 504 loans in Eastern Pennsylvania rose during the first 3 months of Fiscal Year (FY) 2010 over the same period in FY09, 187% and 78% respectively. Moreover, FY10 SBA loan values exceed loan values reported for the same time period in each of the last five years, and are just 2% below FY05 which was the highest level ever reported.

PHILADELPHIA, PA – The dollar value and number of SBA 7(a) and 504 loans in Eastern Pennsylvania rose during the first 3 months of Fiscal Year (FY) 2010 over the same period in FY09, 187% and 78% respectively. Moreover, FY10 SBA loan values exceed loan values reported for the same time period in each of the last five years, and are just 2% below FY05 which was the highest level ever reported. rnrnThe SBA’s 7(a) Loan Guaranty Program is the SBA’s primary financial assistance instrument. It provides loan guaranties on business loans to help qualifying entrepreneurs secure financing on reasonable terms. The program operates through private-sector lenders who provide loans. The SBA’s 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. rnrnThis FY10 loan value increase clearly reflects the vital nature of the SBA’s programs to the small business community, especially during periods of economic turbulence. rnrn“The dollar value of the SBA loans approved during the first quarter of FY10 is very encouraging, but we need a significant increase in the number of loans. There are still businesses out there that are struggling to get credit. The doubling of eastern Pennsylvania’s average SBA loan size from $156K to $362K in the last four years indicates to me that many of the larger and more stable credit worthy small businesses are receiving the capital that they need,” said David Dickson, District Director of the SBA’s Philadelphia District Office. “Still…I am very concerned about the survivability of the very small businesses. Those are the businesses that neither want nor need a $350,000 loan. Those small businesses need much smaller loans to survive and thrive. I would really like to see the number of loans in Eastern Pennsylvania dramatically increase. There are numerous discussions as to which is more economically important; the total dollar volume of lending or the total number of loans. To me, they are both critical.”rnrnDickson continued, “I applaud our lending partners in eastern Pennsylvania for the huge turnaround in lending. There is no question that the economy has created a harsh environment for lender and borrower, alike. However, it is also abundantly clear that the key to the survival of each remains their collective willingness to engage in the kind of lending relationships that will successfully finance this nation’s path to a brighter economic future.”rnrnNationally, the total value of SBA loans approved during 1st quarter FY10 (Oct 1, 2009 through Dec 31, 2009) is up 95.3% from the FY09 figures, and up 17.3% from the same period in FY08. The number of SBA approved loans for 1st quarter FY10 exceeds loan numbers reported for the same period in FY09 by 36.6% but trails loan numbers reported for the same period in FY08 by 59.4%.