Local SBA district office passes $500 million in lending for FY 2016

Release Date: 
Wednesday, October 5, 2016
Release Number: 
16-11
Contact: 
Nina Ramon | 210-403-5920

SAN ANTONIO - The U.S. Small Business Administration local district office saw a six percent increase in SBA loans during the 2016 fiscal year from the previous year.

Here in Texas there are more than 2.4 million small businesses which is about 98.6 percent of all the state’s employers and that means small businesses put more than 4.4 million Texans to work.

“The increased SBA loans can be attributed to the zero upfront guaranty fees,” said Cindy Solano, local district office Lead Lender Relation Specialist. “This is a great tool for our lending partners in promoting the smaller loan amounts in the small business community as evident in this year’s numbers.”

The SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs for startups or existing businesses, by help facilitating a loan with a third party lender, guarantee a bond, finance losses from natural disasters, help find venture capital or grants for cutting edge technology. There are three main loan programs available to small businesses; the 7(a), CDC/504 and microloan program.

Each year SBA reviews certain fees payable to SBA by 7(a) participating lenders (“Lenders”), Certified Development Companies (“CDCs”), and borrowers to determine if any of those fees need to be adjusted to cover the estimated subsidy costs of the 7(a) and 504 loan programs as stated in the SBA information notice dated September 16, 2016.

For all 7(a) loans (except certain loans to veterans) approved during FY17, there will be no change in the upfront guaranty fee and there will be an increase in the annual service fee. These fees are effective for 7(a) loans approved October 1, 2016 through September 30, 2017.

A separate notice will be issued providing information about the fees applicable to loans made to veterans.

During this fiscal year the local district office passed $500 million in both 7(a) and 504 loans, representing a 7.2 percent increase in the dollar value from the previous fiscal year.

“SBA’s lending in the Central South Texas area epitomizes our commitment to the small business community,” said Ron Dear, SBA Deputy District Director. “Since last year over 1,000 borrowers throughout our 55 county service area has been able to start and or grow”

This year the district office team’s hard work resulted in seventy-eight CDC/504 loans, amounting in $96,803,000 and 1,009 in the SBA’s flagship 7(a) loans totaling in $440,639,000.

Within the district office service area, the SBA guaranteed 536 of the 7(a) loans under the provisions of the zero guarantee fees amounting in $30,194,500.

Throughout the past year, the local district office has worked diligently with its vast network of resource and service partners through various initiatives and workshops tailored to small business community such as the recently launched Business Smart Toolkit and Boots to Business: Reboot.

In addition, the agency has made great strides to ease the loan process for prospective borrowers through its online matchmaking service called LINC (Leveraging Information and Networks to access Capital).

Furthermore, the SBA’s Office of Investment and Innovation works to stimulate the economy by providing small businesses and entrepreneurs’ access to capital investments and intellectual property and Federal research dollars through the Small Business Investment Company, Small Business Innovation Research and Small Business Technology Transfer Programs.

The SBA’s mission is to connect with small businesses to support them start, grow and succeed by protecting the interest of small business concerns, preserve free competitive enterprise and maintain and strengthen the economy. The district office echoes this mission to the Central-South Texas small business community.

To learn more about the SBA San Antonio District Office visit, www.sba.gov/tx/sanantonio

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