SBA Releases First Quarter Loan Numbers - Greater Philadelphia Metro

Greater Philadelphia Metro area sees strong SBA lending start to fiscal year
Release Date: 
Tuesday, March 1, 2016
Release Number: 
20160301-003
Contact: 
Robert Goza (610) 382-3084 | robert.goza@sba.gov

PHILADELPHIA– The Greater Philadelphia Metro area’s small businesses may see another record year in U.S. Small Business Administration-backed loans this fiscal year – a boon not only to the entrepreneurial spirit, but to the communities they serve.

SBA lending in the Greater Philadelphia Metro area is up 24% in unit volume during the first months of the fiscal year. Small businesses in the area (the counties of Bucks, Chester, Delaware, Montgomery and Philadelphia) received an additional 41 SBA-backed 7(a) loans from Oct. 1, 2015 to Dec. 31, 2015 compared to the same period last year.

During the first quarter of fiscal year 2016, the Greater Philadelphia Metro area saw 211 loans for more than $54 million in SBA’s flagship 7(a) loan program, compared to 170 loans for more than $63.9 million during the same period last year.

SBA lending in the 40 counties of the Eastern Pennsylvania District is up 28% in unit volume compared to the first quarter of the previous fiscal year. SBA’s 7(a) loan program saw 378 loans totaling more than $99.3 million, compared to 295 loans for $99.6 million during the same period last year – more loans and roughly the same amount of dollars loaned, continuing a trend of more loans for smaller amounts. 

With SBA’s guarantee fee waiver for loans below $150,000 continuing to spur more loans with a smaller average loan size per loan, the 7(a) loan program is in greater use by SBA’s lending partners to make more vital small business loans available to a wider number of small businesses, particularly start-ups and “mom and pop” businesses.

During the same time frame the agency’s 504 Certified Development Company Loan Program, which provides growing businesses with long-term fixed-rate financing for major fixed assets such as land and buildings saw 21 loans totaling more than $18.1 million in eastern Pennsylvania, up from 15 loans for more than $11.2 million dollars during the same time frame of the previous fiscal year. 

"Capital is the lifeblood of small businesses and entrepreneurs wanting to start or expand a business. Creating access to capital for eastern Pennsylvania’s small businesses is a very important role for the U.S. Small Business Administration,” said Tony Leta, Director of SBA’s Eastern Pennsylvania District. “In SBA’s efforts to help small businesses across the nation, lenders play an important role as partners. Through its lending partners, SBA guaranteed loans provide small businesses with access to capital that can cover the vast majority of business expenses, including short and long-term working capital, exports, and even refinancing existing debt under certain conditions.”

For more information on SBA Eastern Pennsylvania District loan volume, visit https://www.sba.gov/offices/district/pa/king-of-prussia/resources/sba-eastern-pennsylvania-district-loan-volume-report-fiscal-year-2016-10-1-2015-12-31-2015

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