South Carolina SBA Small Business Lending Momentum Continues

FY18 total loan volume reaches more than $349 million with 695 approved loans
Release Date: 
Tuesday, October 16, 2018
Release Number: 
18-1016
Contact: 
Savannah Wilburn, (803) 253-3121

SOUTH CAROLINA – The U.S. Small Business Administration announced FY18 lending numbers showing that it guaranteed over $30 billion to small businesses that otherwise would not have had access to capital. Over $349 million was guaranteed to South Carolina small businesses.

In FY18, there were a total of 695 loans made in South Carolina, a 16.6 percent increase compared to FY17’s total of 596 loans. The dollar amount of loans guaranteed had a slight decrease of 10 percent from last year’s total of $389 million.

“The increase in the number of loans SBA has guaranteed to South Carolina businesses shows that more entrepreneurs were able to receive funds to start, grow or expand their small business,” said Gregg White, district director of the SBA South Carolina District Office. “The decrease in the loan volume means that we are approving smaller loans. Our loans go up to $5 million, but your typical small business does not need that much capital. This shows that we are reaching the businesses that are just starting or need a little extra to take their business to the next level.”

One way small loans are made is through the SBA’s microloan program, which works with partnering lenders, community development organizations and micro-lending institutions to provide loans under $50,000. This program expanded rapidly in FY18 for South Carolina, resulting in a 114 percent increase in microloan volume across the state.

“We are providing tools, resources and access to capital for America’s 30 million small businesses, and our FY18 numbers bear that out,” SBA Administrator Linda McMahon said. “Our loan programs in FY18 continue to show strong performance, and we believe the President’s tax cuts and deregulatory actions will help more small businesses grow and prosper in the coming year.”

Nationwide, there were approximately 60,353 7(a) loans made, with a total dollar amount of $25.37 billion. The 7(a) program is SBA’s flagship program, which 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 SBA’s 504 loan program had another year of high performance for lending, with 5,874 loans made for a total dollar amount of over $4.75 billion. In FY18 SBA launched the 25-year Debenture, which offers an extra 60 months of financing at a fixed rate for small businesses. Since its introduction in April, over 1,000 debentures had been sold by the end of September.

“The 25-year Debenture is designed to help free up cash flow and offer fixed rates in a rising interest rate environment for 504 borrowers and we are pleased to see over $1 billion has been disbursed in less than six months,” Associate Administrator for SBA’s Office of Capital Access William Manger said.

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 3.6 million leads on behalf of small businesses to our lenders and over 160,000 unique borrowers have been contacted by lenders with financing options.  

Another technological innovation was the development of the SBA’s Franchise Directory, which was launched this year and has resulted in an over 50 percent increase in eligible franchise brands. There are currently 3,192 brands on the Franchise Directory. When the directory was first published in October 2017 there were only 2,034 brands.  In FY18, SBA has seen a year over year increase of over 21 percent in 7(a) and 504 dollars going to franchises.

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

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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.