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MASSACHUSETTS SBA LENDING STRONG IN FY 2014

SBA loans support over $595 million to Massachusetts small businesses in 2014
Release Date: 
Thursday, November 6, 2014
Release Number: 
15-4
Advisory Date: 
Thursday, November 6, 2014
Contact: 
Malise Sundstrom, 617-565-8417

BOSTON – Massachusetts small business owners received 2,397 loans supporting over $595 million from the U.S. Small Business Administration in fiscal year 2014 (October 1, 2013 through September 30, 2014) through its business loan programs, according to an announcement today by Massachusetts SBA Director Robert H. Nelson.

 

The SBA guaranteed 2,112 loans through its flagship 7(a) Loan Guaranty Program for a total of more than $295 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 saw 215 loans supporting more than $128 million. SBA 504 loans are used to construct, purchase or rehabilitate fixed assets such as land, buildings, and machinery and equipment.

 

Massachusetts ranks #3 out of 68 SBA offices nationwide for number of 7(a) and 504 loans approved.  Massachusetts also led the nation as #1 on loans of less than $50,000 and #1 on loans of less than $150,000. These SBA loans can make a game-changing difference, especially to underserved communities that use these small dollar loans more frequently.

 

In addition to the 7(a) and 504 loans, 70 loans totaling over $1.25 million were made through eight SBA microloan intermediaries.

 

During the fiscal year, SBA zeroed out fees on loans of $150,000 or less and saw a significant spike in small-dollar lending activity in the state. Zeroing out fees also saved this state’s small businesses more than $1 million last year. The fee waiver will continue in fiscal year 2015 as well.

 

“We are fortunate to have such committed lending partners in Massachusetts who are so dedicated to our small businesses across the state, said SBA District Director Robert Nelson. “Our loan products helped nearly 150 lenders keep credit flowing to small business customers, including many customers in traditionally underserved communities.”

 

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, 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 7(a) lender in Massachusetts for the fifth year in a row with 672 loans totaling more than $37 million and the #1 504 lender with 33 loans totaling over $11 million. Eastern is also the #1 SBA lender in New England.

 

Santander Bank was the second highest producer with 121 loans just over $15 million and Rockland Trust Company was third with 109 loans totaling over $16 million. Completing the list of top ten SBA lenders in Massachusetts are Citizens Bank, Leader Bank, TD Bank, South Shore Bank, Cambridge Savings Bank, Commerce Bank & Trust Company, and Unibank for Savings.

 

Accion USA located in Boston, MA is the #1 microlender with 16 loans totaling over $171,000. South Eastern Economic Development Corp (SEED) headquartered in Taunton, MA is the #1 microlender in terms of dollars with 11 loans at $388,500.

 

Granite State Economic Development Corp. was SBA’s leading Certified Development Company/504 lending partner in Massachusetts with 73 loans totaling over $48 million, while Waltham-based Bay Colony Development Corp. came in second with 70 projects worth over $40 million. New England Certified Development of Wakefield was third with 36 projects totaling over $21 million.

 

Nationally, the U.S. Small Business Administration 7(a) Loan Program reached another lending record in FY 2014 with 52,044 7(a) approvals for $19.19 billion representing an increase of 12 percent by number of loans approved and 7.4 percent in dollar amount approved over fiscal year 2013.

 

SBA lenders will be honored at a special awards ceremony at the Tip O’Neill federal building on Friday, November 21, 2014. The press, small business owners and others are invited to attend and can register by visiting the SBA Massachusetts calendar of events.

 

For more information about SBA programs and services, call the Massachusetts District Office at (617) 565-5590.