LOCAL SBA LENDING STILL KEEPING THE PACE IN FY2012

Advisory Date: Wednesday, November 14, 2012
Release Date: Thursday, October 25, 2012
Release Number: 13-1
Contact: Malise Sundstrom, Public Information Officer at 617-565-8417

SBA loans support over $692 million to Massachusetts
small businesses in 2012

BOSTON – Massachusetts small business owners received 1,933 loans supporting over $692 million from the U.S. Small Business Administration in 2012 (October 1, 2011 through September 30, 2012) through its business loan programs, according to an announcement today by Massachusetts SBA Director Robert H. Nelson. In FY2011 1,997 loans supported over $600 million in SBA lending in Massachusetts.

The SBA guaranteed 1,535 loans through its flagship 7(a) Loan Guaranty Program for a total of $199 million. These loans are available to purchase or construct real estate, equipment and inventory, to finance fixtures and leasehold improvements, and for working capital.

The Certified Development Company/504 Loan Program posted its best year ever in terms of numbers with 311 loans supporting $491 million in 504 loans. SBA 504 loans are used to construct, purchase or rehabilitate fixed assets such as land, buildings, and machinery and equipment.

Massachusetts ranks #5 out of 68 SBA offices nationwide for number of 7(a) and 504 loans approved.  Massachusetts also led the nation as #1 in SLA loans (Small Loan Advantage) , a great new loan product for loans up to $350,000 that streamlines the application process for lenders and enables them to provide a faster turnaround to their customers.

In addition to the 7(a) and 504 loans, a record 87 loans totaling over $2 million were made through eight SBA microloan intermediaries. 

“We are fortunate to have such committed lending partners in Massachusetts who are so dedicated to our small businesses across the state. Through our array of loan programs, we have something for everyone to get started or grow a business,” said SBA Director Nelson. “Our loan products helped 137 lenders keep the credit flowing to their small business customers. More than 20,000 jobs were created and retained this year as a result of their participation with SBA.  This is good for small business and good for our economy.”

He added, “We also have a truly dedicated team of professionals here in Massachusetts. In addition to our lenders, we have the team of SBA staff and our resource partners: SCORE “America’s Counselors for Small Business”, the Massachusetts Small Business Development Centers, the Center for Women and Enterprise and the Northeast Veterans Resource Center. Everyone works hard to deliver on the mission of SBA.” 

Eastern Bank was the #1 SBA 7a Lender in Massachusetts for the third year in a row with 400 loans totaling more than $23 million and the #1 504 lender with 23 loans totaling over $10 million. Eastern is also the #1 SBA Lender in New England. 

Sovereign Bank was the second highest producer with 122 loans just under $10 million and Citizens Bank was third with 74 loans totaling over $7.7 million. Completing the list of top ten SBA lenders in Massachusetts are Rockland Trust Company, TD Bank, Enterprise Bank and Trust, Cambridge Savings Bank, Commerce Bank, South Shore Savings Bank and UniBank for Savings.

ACCION USA located in Boston, MA is the #1 Microlender with 16 loans totaling $184,000.
South Eastern Economic Development Corp (SEED) headquartered in Taunton, MA is the #1 Microlender in terms of dollars with 15 loans at $466,000.

Granite State Economic Development Corp. was SBA’s leading Certified Development Company/504 lending partner in Massachusetts topping last year’s performance with 111 loans totaling over $73 million, while Waltham-based Bay Colony Development Corp. came in second with 89 projects worth over $58 million. New England Certified Development of Wakefield was third with 46 projects totaling over $41 million.

These and other top lenders for FY2012 will be honored at the Massachusetts SBA Annual Meeting on Friday, November 2 at the Tip O’Neill Federal Building, 10 Causeway St., Boston, MA.

SBA loans in New England totaled 4,119 worth $1.4 billion and nationwide 53,848 loan approvals supported $30.5 billion.

For more information about SBA programs and services visit our website at www.sba.gov or call the Massachusetts District Office at (617) 565-5590.

 

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