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SBA Kansas City District Office Breaks $387 Million in Federal Contracting and $363 Million in Small Business Lending

Release Date: 
Friday, October 12, 2018
Release Number: 
KCDO 1018-03

Kansas City, Missouri – The U.S. Small Business Administration (SBA) - Kansas City District Office secured $387,326,536 federal contracting dollars to Kansas and Missouri small businesses from October 1, 2017, to September 30, 2018, the U.S. federal government’s fiscal year (FY). This is an increase of $147,659,234 or 62 percent compared to FY 2017 when it secured $239,667,302 federal contracting dollars to Kansas and Missouri small businesses.

“It is an exciting time for the 8(a) small business development program in Kansas and Missouri” said Kansas City Deputy District Director, Dennis Larkin. “The average size of the small business federal contracting offer letter is $3,619,874 which is an increase of $1,358,862 over FY 2017. Our 44 8(a) firms received offer letters in 37 cities outside the four state region (KS, MO, IA, and NE). Seven 8(a) firms received offer letters in FY 2018 that did not in FY 2017.” The goal of the SBA 8(a) Business Development Program is “to promote the business development of small business concerns owned and controlled by socially and economically disadvantaged individuals…”  The $387 million federal contracting offers received by Kansas and Missouri small businesses helped support roughly 3,917 jobs.

On the small business lending front, the SBA Kansas City District Office had a 10% increase in dollar amount ($34,209,063) in FY 2018 compared to FY 2017. Lending numbers for FY 2018 are at $363,153,291 compared to $328,944,228 for FY 2017. U.S. Bank made more SBA loan than any other lender (69), while OakStar Bank loaned the greatest dollar volume ($38 million).

“The KCDO continues to lead the region in loan production because of the dedication and commitment of our lenders. With the SBA FY 2019 reduced guarantee fees for loans made to rural businesses, we expect our lenders to take advantage of this rural fee relief and increase lending. This way we can get more loans in the hands of our local entrepreneurs and small businesses and eventually create more economic opportunities in the rural communities.” said the SBA Kansas City District Director, Jon Malcolm Richards. For SBA 7(a) loans made to small businesses where the physical address of the operating concern is located in a rural area or a historically underutilized business zone (HUBZone), as determined by the SBA, for loan amounts of $150,000 or less: a) The annual service fee will be zero; and b) The upfront guaranty fee will be 0.6667% (66.67 basis points) of the guaranteed portion of the loan.