Access to Capital to Small Businesses in Nebraska Thanks to SBA Loans Continues to Drive Entrepreneurial Growth
$33.5 Million in Loan Volume to Small Businesses in Cornhusker State Over Past Three Months; Up 15% Over Previous Quarter
Omaha, NE – The number of small business loans financed through the SBA proved crucial to start-up and existing small business owners across Nebraska by providing needed access to capital over the 3rd quarter of Fiscal Year 2013, ending June 30.
Over the past three months, the SBA, working with our commercial lender partners, approved 99 loans for $33.5 million in volume for small businesses across the state, a rate which closely matches the previous pre-recessionary participation rate. The number of approvals and the total dollar amount for the 3rd quarter was up 15 percent over the 2nd quarter of Fiscal 2013.
In a continuing sign of confidence in Nebraska’s entrepreneurial economy, 45 percent of SBA loan approvals over the past three months went to fund new business ventures in the Cornhusker State; nationwide, that figure normally is between 33 and 40 percent.
As a direct result of SBA-guaranteed small business financing throughout the state over the past three months, more than 460 new jobs are being created in Nebraska, and nearly 740 jobs are being kept on payrolls.
Year to date, small businesses in the state have been approved for 285 SBA guaranteed loans for a total of $94.8 million, supporting the creation of 1,275 new jobs over the past nine months and helping to keep more than 2,100 jobs in the state. This economic activity as a result of small business growth is a crucial sign, considering that according to the SBA’s Office of Advocacy, half of all jobs in Nebraska are from companies with fewer than 100 employees.
More SBA loan dollars in Fiscal 2013 have gone to accommodation and food service businesses ($17.8 million) than to any other field in Nebraska, followed by retail trade ($16.8 million), health care and social assistance ($11.2 million) and wholesale trade ($8.826 million). Loans to manufacturing firms have reached $8.822 million in the state.
Nebraska, which ranks fifth nationwide in microloans for small businesses, and experienced 42 percent growth in microlending between Fiscal 2011 to Fiscal 2012, continues to see solid growth in access to capital for start-ups and very small firms.
The SBA’s Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand, providing funds to specially designated intermediary lenders, such as the Omaha Small Business Network, the Lyons-based Rural Enterprise Assistance Project, Community Development Resources of Lincoln and West Central Nebraska Development District of Ogallala. These non-profit, community-based organizations use their experience in lending as well as management and technical assistance in administering the SBA Microloan program for eligible borrowers.
To date in Fiscal Year 2013, small businesses across the state have been approved for 73 SBA microloans for a total of more than $942,000, an average of nearly $13,000 per loan. As a direct result of this financial assistance, 79 new jobs have been created.
“We’re proud of our role expanding credit to our entrepreneurs as they establish themselves in the marketplace, grow, and create new jobs across the state,” said Leon Milobar, District Director of SBA’s Nebraska District Office. “The pace of SBA loan-making and evidence of access to capital improving for small business owners is a healthy sign for Nebraska’s economy. It’s encouraging to see they are taking advantage of our loan programs in steadily improving numbers. We’re finding even with the continuing challenges throughout the economy, we can say for certain that for entrepreneurs in Nebraska, business is good.”
SBA-backed loans represent a fraction of small business lending in Nebraska and across the country. However, these loans are closely monitored as an economic indicator of willingness by lenders to extend credit to start-up and existing small businesses.