All-Time SBA Loan Volume Record in Fiscal Year 2011: Over $30 Billion in Small Business Loans to 60,000 Businesses
by Karen Mills, Former SBA Administrator
- Created: October 5, 2011, 3:23 pm
- Updated: October 7, 2011, 11:35 am
I’m pleased to announce that the SBA hit an all-time record in small business lending this fiscal year: over $30 billion in lending supported to over 60,000 small businesses.
Let’s take a step back and see how we got here.
In October 2008, lending markets froze. Banks simply weren’t giving small business loans.
Then, President Obama signed the Recovery Act. We were able to raise the guarantee on SBA loans to 90%, and reduce or eliminate the fees. It worked. SBA lending roared back. We were able to bring 1,200 lenders back to SBA lending who had not made a loan since 2007. SBA lending quickly went back up to pre-recession levels as we helped to fill the gap in the marketplace.
In fact, these two provisions worked so well that Congress provided funding five more times to keep it going. Then, a year ago, the President signed the historic Small Business Jobs Act – the most important piece of small business legislation in over 10 years. It included those critical provisions, and it resulted in our highest quarter of SBA lending ever.
That brings us to today’s all-time record year in the nearly 60-year history of the SBA.
Ultimately, the decision to make these enhancements back in early 2009 ended up making a huge impact. By far, they were the biggest driving force behind the fact that – over the past 3 fiscal years – we supported over $70 billion in lending to over 150,000 small businesses in every corner of America.
But, today, we still have gaps to fill.
For example, data show that smaller loans under $250,000 are still down. And we know that these loans are particularly important in underserved communities. That’s why we’re working to broaden the spectrum of lenders, including mission-based lenders and CDFIs who can successfully reach into these communities using our new Community Advantage program. In addition, last week, the Vice President and I announced that 13 of our largest banks just made $20 billion in new commitments to small business lending over the next three years.
And, on a bigger level, the President is asking Congress to pass the American Jobs Act to put even more dollars in the pockets of small business owners, especially when they hire more workers and give raises.
When I was traveling around the country two years ago, many small businesses were telling me that they needed a loan just to keep their doors open. Today, though, I’m hearing from more and more businesses that need a loan to buy that next piece of equipment, to re-stock their inventory, or to hire more workers.
We’re gearing up for another great year in SBA lending. We’re back at the weekly SBA loan levels we saw before the recession hit, even without the special provisions that helped us fill the gap these past few years. We’re going to keep the momentum going, and continue doing everything we can to help small businesses do what they do best – create jobs.
About the Author
Karen Gordon Mills is the Former Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.
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