President Biden announced important changes to the PPP, including a two-week window for businesses with fewer than 20 employees.
LEARN MORE Close

Small Businesses in Washington, Northern Idaho Access More Than $921 Million in SBA Loans to Start, Grow in FY 2019

SBA Seattle District reaches more than 1,700 approved loans; Nationally, loan volume reaches more than $28 billion with more than 63,000 approved loans
Release Date: 
Wednesday, October 16, 2019
Release Number: 
2019-10-16
Advisory Date: 
Wednesday, October 16, 2019
Contact: 
Lisa White | (206) 553-7050 | lisa.white@sba.gov

SEATTLE – The U.S. Small Business Administration (SBA) Seattle District Office – serving Washington state and northern Idaho – announces FY 2019 lending numbers showing that it guaranteed more than $921.5 million to small businesses that otherwise would not have had access to capital. Nationally, SBA loan volume in FY 2019 reached more than $28 billion.

“Access to capital is consistently one of the top challenges entrepreneurs and small businesses encounter making the SBA Loan Guarantee Program a vital resource to economic growth and job creation,” SBA Pacific Northwest Regional Administrator Jeremy Field said. “In an increasingly digital credit marketplace, the SBA has cut loan processing times in half during the past year and expanded online tools like Lender Match to connect small businesses with the right lender fast.”

During FY 2019 there were 1,519 7(a) loans made in the SBA Seattle District, 52,000 nationally. The total dollar amount of 7(a) loans in the SBA Seattle District was $772.7 million and $23.17 billion nationally.

The 7(a) program is SBA’s flagship program, which offers guarantees on loans to small businesses up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital.

The SBA’s 504 loan program – which provides small businesses with long-term, fixed-rate financing to acquire fixed assets for expansion or modernization – had another year of high performance for lending, with 139 loans in the SBA Seattle District made for a total dollar amount of $147.6 million. Nationally, 6,099 loans made for a total dollar amount of more than $4.98 billion, a 4.3% growth from last fiscal year.

In FY 2019 there was significant growth in the SBA’s smaller loans, including a record volume of dollars lent in the SBA Microloan Program. Nationally, more than 5,500 loans were approved for nearly $81.5 million in the Microloan program, a 7.5% increase from last fiscal year.

Specifically in the SBA Seattle District, 72 loans were approved for more than $1.2 million in the Microloan program, up from 65 loans totaling $879,400 last fiscal year.

“Washington state and the Inland Northwest continue to be a great place to start and grow a business, as demonstrated by the consistently high number of SBA guaranteed loans made and high total loan volume in our district,” SBA Seattle District Director Kerrie Hurd said. “Specifically, the growth in the SBA 504 loan program means more local businesses are purchasing their own commercial space and industrial equipment to invest in the long-term future of their businesses. And the continued local growth in the microloan program tells us more startups and young firms are accessing much-needed capital.”

The following were the top 10 industries to receive SBA loans in the SBA Seattle District by loan volume and loan numbers. Industries are categorized using North American Industry Classification System (NAICS) codes:

Top 10 Industries by Number of Loans

  NAICS Code   Number of
Loans Made
Loan 
Volume

1.

722511

Full-Service Restaurants

136

$62.7 million

2.

447110

Gasoline Stations with Convenience Stores

61

$91.4 million

3.

722513

Limited-Service Restaurants

57

$14.8 million

4.

713940

Fitness and Recreational Sports Centers

48

$20 million

5.

236118

Residential Remodelers

38

$6.8 million

6.

721110

Hotels (except Casino Hotels) and Motels

36

$95.6 million

7.

621210

Offices of Dentists

31

$27.7 million

8.

621310

Offices of Chiropractors

30

$7.8 million

9.

238220

Plumbing, Heating and Air-Conditioning Contractors

29

$25.9 million

10.

238990

All Other Specialty Trade Contractors

28

$13.7 million

The following were the top 10 SBA lenders in the SBA Seattle District by number of loans:

Top 10 SBA Lenders by Number of Loans

 

Lending

institution

Number of loans made

Loan

volume

1.

U.S. Bank National Association

197

$47.9 million

2.

Banner Bank

145

$37.1 million

3.

Columbia State Bank

132

$36.3 million

4.

KeyBank National Association

96

$47.4 million

5.

Washington Trust Bank

77

$25.5 million

6.

Wells Fargo Bank, National Association

59

$24.4 million

7.

Northwest Bank

46

$33.9 million

8.

Umpqua Bank

45

$36.1 million

9.

JP Morgan Chase Bank, National Association

39

$13.4 million

10.

Heritage Bank

38

$31 million

Since early 2018, the SBA Rural Strong Initiative is working to provide more access to financing in rural communities across Washington state and northern Idaho. As part of this effort, the SBA Seattle team coordinated outreach visits with training events and lender meetings for communities in Clallam and Island counties. Notably, 7(a) loan volume was up by nearly 500% in Island County from last year.

The following were the top five SBA lenders in rural counties the SBA Seattle District by number of loans:

Top Five SBA Lenders in Rural Counties by Number of Loans

 

Lending

institution

Number of loans made

Loan

volume

1.

Banner Bank

19

$2 million

2.

Columbia State Bank

18

$3.2 million

3.

Washington Trust Bank

11

$2.1 million

4.

U.S. Bank, National Association

11

$1.5 million

5.

Commonwealth Business Bank

10

$11.7 million

The SBA continued to innovate and improve processes by leveraging enhanced technologies. Lender Match is an SBA technology platform that gives entrepreneurs the ability to complete a quick online form, without registration or cost, and be connected with an approved SBA lender within 48 hours.

To date, Lender Match has generated 4.4 million leads on behalf of small businesses to SBA lenders and more than 230,000 unique borrowers have been contacted by lenders with financing options. 

For more information about SBA’s loan programs, financial assistance and other services, visit www.sba.gov.

###

About the 7(a) and 504 Loan Programs

The 7(a) Loan Program is the SBA's primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. The CDC/504 loan program helps small businesses acquire fixed assets to promote economic development in the form of long-term fixed rate financing for fixed assets on reasonable terms. Under this program, the SBA authorizes CDCs (Certified Development Companies) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is generally $5 million; however, certain eligible energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each.

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. The Seattle District Office serves Washington state and northern Idaho with office locations in Seattle and Spokane.

                                                                                                                                                   

 

Attachments Size
news release as pdf 141Kb