SBA 7(a) LOANS UP 22% IN MASSACHUSETTS
BOSTON – Massachusetts small business owners received 1,869 loans supporting $605 million from the U.S. Small Business Administration in fiscal year 2013 (October 1, 2012 through September 30, 2013), according to an announcement made today by Massachusetts SBA Director Robert H. Nelson.
On SBA’s most popular loan program - 7(a) - 2013 loan approvals by dollar were 22% over FY12 levels.
The SBA guaranteed 1,525 loans through its flagship 7(a) Loan Guaranty Program for a total of $242 million. Under the 7(a) program, the SBA provides its guarantee on loans approved by banks. These loans are available to start up and existing businesses to purchase, renovate or construct real estate, equipment and inventory, to finance fixtures and leasehold improvements, working capital, and in some cases refinance debt.
The Certified Development Company/504 Loan Program in terms of numbers with 273 loans supported $363 million in 504 loans. SBA 504 loans are used to construct, purchase or rehabilitate fixed assets such as land, buildings, and machinery and equipment.
As a result of SBA’s lending activity 18,000 jobs were supported across the state, including 8,375 newly created jobs.
Massachusetts ranks #4 out of 68 SBA offices nationwide for number of 7(a) and 504 loans approved. Massachusetts also ranks #2 in SLA loans (Small Loan Advantage), a popular loan product for loans of up to $350,000 that streamlines the application process for lenders and enables them to provide a faster turnaround to their customers. Massachusetts ranks #3 on low dollar loans of $150,000 or less.
For the fifth consecutive year, Eastern Bank had the highest number of 7(a) approvals with 431 loans approved totaling more than $22 million and also the highest number of 504 loans approved with 19 loans worth $12.2 million earning them the title of #1 Massachusetts SBA Lender for 2013. Eastern is also #1 in New England for highest number of loans approved.
In addition to the 7(a) and 504 loans, 71 loans totaling almost $1.6 million were made through eight SBA microloan intermediaries.
“2013 was another phenomenal year for SBA lending in Massachusetts. Thank you to all our lending and community partners for their continued support of SBA programs and hard work on behalf of small business. Also, to our resource partners, the Massachusetts Small Business Development network (MSBDC), SCORE, the Center for Women and Enterprise and the Northeast Veterans Business Resource Center for the invaluable services they provide that help our small business thrive and survive.” said SBA Director Nelson.
He further added, “We look forward to continuing this momentum in 2014. I am excited to kick off the year starting October 1 with our new fee waiver provision on loans up to $150,000, which can save a business as much as $2500 in up-front fees. This will result in significant savings for Massachusetts SBA borrowers in the upcoming year. We also have other new initiatives and existing programs that will enable us to provide even better access to capital, training, counseling and contracting opportunities for our businesses - and we will have a special focus on targeting underserved markets which include veteran, minority and woman owned businesses.”
Eastern Bank and other top lenders for FY 2013 will be honored at the Massachusetts SBA 2013 Annual Meeting/Lender Awards event on Friday, November 8 at 10am at the Tip O’Neill Federal Building, 10 Causeway Street, Boston, MA. This event is open to the public. Lenders, local, state and community partners and business owners should attend. Contact email@example.com to register.
For more information about SBA programs and services visit our website at www.sba.gov/ma or call the Massachusetts District Office at (617) 565-5590.
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