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SBA Sees Record Increase In Lending Activity in Nebraska in FY2020

$153.7 Million in SBA Guaranteed Financing to Nebraska Small Businesses Created and Saved More Than 2435 Jobs During Past 12 Months
Release Date: 
Monday, November 9, 2020
Release Number: 
20-04
Contact: 
Elizabeth Yearwood

Omaha, NE – Nebraska’s entrepreneurial climate remained remarkedly strong this year despite the widespread economic impact of the COVID-19 pandemic. The total amount of SBA loan guarantees was for $153.7M, which is a $10M increase from fiscal year 2019. The number of SBA guaranteed loans remained steady with a total of 436 loans approvals ($153.7M) this fiscal year compared to 445 ($143.6M) last fiscal year. These loans were made through banks, credit unions and certified development companies.

The FY2020 Regular Program loan totals for the Nebraska District Office were:

  • 7(a) Loan Program: 274 loans approved for $115,429,700
  • 504 Loan Program: 55 loans approved for $36,530,000
  • Microloan Program: 107 loans approved for $1,802,580

Critical components to the survival of Nebraska’s small businesses in FY2020 were included in the CARES Act. The CARES Act funded loans for eligible businesses affected by the COVID-19 pandemic, funding both the Paycheck Protection Program (PPP) loan program and COVID-19 Economic Injury Disaster Loan (EIDL) Program loans Nebraska’s banks, credit unions and other lending institutions were quick to act on two rounds of funding for the Paycheck Protection Program, making over 44K PPP loans totaling over $3.4B.  Many Nebraskans also were approved for the SBA’s COVID-19 EIDL program, which so far has provided over 14K direct loans totaling over $850M in Nebraska. Small business owners may still apply for SBA EIDL-COVID-19 loans using this application: https://covid19relief.sba.gov/#/

The FY2020 CARES Act loan totals for the Nebraska District Office were:

  • Paycheck Protection Program: 44,077 loans for $3,443,144,703
  • SBA COVID-19 EIDL Program: 14,423 loans for $850,956,543

The total lending activity for Nebraska in FY20 was 58,936 loans for $4,447,863,527. First National Bank of Omaha provided the most SBA 7(a) loans in Nebraska – 29 loans were made totaling $10,398,000. Coming in second was U.S. Bank, National Association with 25 loans totaling $1,191,200. Rounding out the top three was First State Bank Nebraska with 23 loans totaling $7,331,500.

Here are the top Nebraska 7(a) lenders by loan amount:

First National Bank of Omaha                                    NE          29           $10,398,000

Union Bank and Trust Company                                NE          20             $8,765,400

First State Bank Nebraska                                         NE          23             $7,331,500

Wells Fargo Bank, National Association                    SD          14             $7,087,100

Core Bank                                                                  NE            5             $5,608,900

Cornhusker Bank                                                       NE            6              $4,359,200

City Bank & Trust Co.                                                NE            2              $3,850,000

Arbor Bank                                                                 NE          13              $3,299,200

 

Here are the top 7(a) lenders by number of loans:

First National Bank of Omaha                                     NE         29           $10,398,000

U.S. Bank, National Association                                 OH         25             $1,191,200

First State Bank Nebraska                                          NE          23            $7,331,500

Union Bank and Trust Company                                 NE          20            $8,765,400

Wells Fargo Bank, National Association                     SD          14            $7,087,100

Arbor Bank                                                                  NE          13            $3,299,200

Western Nebraska Bank                                             NE            8               $304,600

Equitable Bank                                                            NE            6               $701,000

Cornhusker Bank                                                        NE             6           $4,359,200

 

As a direct result of SBA guaranteed 7(a) and 504 small business financing in Fiscal 2020, 2435 jobs were created or saved.  According to the SBA’s Office of Advocacy, half of all jobs in Nebraska are from companies with fewer than 100 employees. 

As a federal agency helping lenders in Nebraska and across the country to make small business loans under the 7(a) program, the SBA guarantees that a certain portion of the small business loan will be repaid if the borrower defaults.  An SBA guaranteed loan offers borrowers the potential for a lower equity injection and longer amortization with interest rates capped by the government.

The SBA’s 504 loan program is a public-private partnership designed to provide attractive, fixed interest rate loans on large equipment and real estate projects for small businesses. Under this program, private lenders provide 50 percent of the project’s financing, with the SBA supplying up to 40 percent and the small business 10 percent. With the 504 program, the SBA works with a Certified Development Company (CDC), a private, nonprofit corporation to support financing to small businesses.  Nebraska’s CDCs are the Nebraska Economic Development Corporation and Community Development Resources, both headquartered in Lincoln. 

To summarize this historic year, Leon Milobar, District Director for the SBA Nebraska Office, states that “through the coordinated effort our community lenders, trade associations, economic development organizations and SBA’s resource partners, Nebraska’s SBA District Office was able to provide the financial resources and programs to our Nebraska businesses. The record small business lending for FY2020 included PPP, EIDL, 7(a) and 504 loans to help keep businesses operating during this unprecedented economic event. PPP loans reached $3.4B, representing over 92% of the small businesses in Nebraska with employees, one of the top four states in the country to do so.”

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more visit www.sba.gov.