Following up on a record for SBA lending volume in the state’s history last year, for the second quarter of Fiscal 2012 the numbers show continued strong support for small business lending in Nebraska.
The second quarter of Fiscal 2012, which wrapped up March 31, saw Nebraska’s small businesses approved for 118 SBA-backed loans for $38.2 million through banks and credit unions throughout the state.
The good news is that entrepreneurs throughout the state have received financing to start a new business, refinance existing debt, or find the capital needed to expand operations. As a result of SBA loans in the second quarter, nearly 450 new jobs are being created in the state, and just as important, more than 1,400 jobs are being kept in Nebraska.
Of the small businesses which received SBA financing in the second quarter, 57 went to start-ups and 61 went to existing businesses, a promising sign. In a usual quarter, 33 to 40 percent of SBA loan activity goes to start-up firms; in the second quarter of 2012, that figure was 48 percent.
Digging deeper into the numbers, 35 loans went to rural companies while 83 went to urban ones; 39 went to firms owned by women, and seven went to veteran-owned small businesses.
Wells Fargo stood out in the second quarter as the state's top SBA lender with 10 SBA loan approvals for $3.39 million in volume.
The industry with the most SBA loan approvals for the second quarter in the state was accommodation and food services, with 17 loan approvals for $5.3 million.
The continued support for SBA-backed financing in Nebraska partly can be attributed to continued caution by lenders to make commercial loans, especially to new businesses. SBA loans remain attractive because the SBA guarantee provides lenders with some cushion for their risks, especially for small businesses with less collateral and smaller equity injections typically required for conventional commercial loans.