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SBA Dollars are increasing in the San Antonio District

Release Date: 
Friday, September 29, 2017
Release Number: 
17-07
Contact: 
Nina Ramon | (210) 403-5900

SAN ANTONIO – Since its founding in 1953, the U.S. Small Business Administration has delivered millions of loans and loan guarantees, helping Americans start, build and grow businesses and in turn drive economic growth. In the past several years, the SBA’s San Antonio District Office has seen a rising tide of confidence from borrowers interested in Small Business Administration loans.

The San Antonio District Office is located in the central south part of the state of Texas, serving 55 out of the 254 counties in the State of Texas.  It is estimated that well over 400,000 small businesses are located in the district.

During fiscal year 2016, the district experienced an exceptional year with lenders, producing a six percent increase in all the SBA lending programs from the previous year.

As the 2017 fiscal year approaches an end, the SBA San Antonio District predicts loan numbers will surpass the previous year. As of August 25, 2017, over 900 7(a) and sixty nine 504 loans have been made with the top 7(a) lender in the district being Compass Bank and Capital Certified Development Company being the current top 504 lender.

One particular SBA loan program called Community Advantage has seen a rise in the district. Community Advantage is a pilot loan program introduced by the SBA to meet the credit, management, and technical assistance needs of small businesses in underserved markets such as:

  • Low-to-Moderate Income (LMI) communities
  • Businesses where more than 50% of the full time workforce is low-income or resides in LMI census tracts
  • Empowerment Zones and Enterprise Communities
  • HUBZones;         
  • New businesses (firms in business for no more than two years)
  • Businesses eligible for SBA Veterans Advantage
  • Promise Zones

Community Advantage provides mission-based lenders access to 7(a) loan guaranties as high as 85% for loans up to $250,000. Although a borrower must prove credit worthiness and the viability of the business idea: unlike traditional lending, qualification for this program is not limited by the size of the borrower’s balance sheet, or the amount of collateral involved.

“The Community Advantage Program provides assistance to underserved markets that at times conventional lending is not able to provide the monetary assistance needs of the small business community,” said Cindy Solano, San Antonio District Lead Lender Relations Specialist.  “The district is fortunate to have four approved Texas Community Advantage lenders located within its footprint.” 

Across the United States, there has been a six percent increase in number of Community Advantage loans since last fiscal year – over $100 million to small businesses.

The district level is experiencing a similar growth in Community Advantage loans. As of August 25, 2017 there is a 16 percent increase from last fiscal year – PeopleFund being the current top Community Advantage lender.     

“The numbers don’t lie,” Solano continued. “The Community Advantage program works and we anticipate a conservative 25% increased growth this year in the Community Advantage Program in the San Antonio District compared to last year.”

Advantages of CA loan

  • Management and technical assistance. Your Lender has access to SBA’s network of enhanced management and technical assistance. This service is provided to ensure that your business can start, grow and achieve long-term success. Services include business plan preparation, market research, accounting services, payroll, etc.
     
  • Access to affordable credit. For businesses that might not qualify for traditional financing, Community Advantage can provide an alternative path to help build your business. Unlike traditional lending, qualification for this program is not limited by the size of the borrower’s balance sheet, or the amount of collateral.

The agency continues its efforts to recruit more banks to offer SBA guaranteed loans.  There are currently 112 SBA approved lenders within the district.

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