SBA Buffalo 2013 Efforts Translate into Big Impact for Local Small Business
M&T Bank Remains on Top for 19th Consecutive Year BUFFALO, NY--- The Buffalo District Office of the U.S. Small Business Administration (SBA) closed out their fiscal year on September 30 and approved 699 7(a) and 504 loans totaling $142 million to small businesses in its 14 county service area*. Overall, the district noted an 8 percent increase in numbers and a mind-blowing 43 percent increase in dollars. For the nineteenth consecutive year M & T Bank won the annual competition for the highest SBA 7(a) volume by dollar value for the SBA’s Buffalo District Office. This is an 83 percent increase over fiscal year 2012. M&T also recaptured first place in terms of the number of loans. M & T Bank approved 260 loans both in Buffalo and Rochester with an aggregate value of over $44 million. Increased lending from First Niagara Bank and Rochester based Canandaigua National Bank greatly assisted the District in its efforts to meet Agency goals. The District’s lending activities assisted nearly 600 separate businesses that supported over 2100 jobs in our service area including 838 newly created positions directly resulting from the SBA’s assistance. Loan approvals supported 255 new businesses**. The portfolio of new loan approvals included 124 women-owned businesses for a 31 percent increase in numbers, 38 loan approvals for veteran-owned small business which remained stable and 62 loan approvals to minority-owned businesses for a 30 percent increase in numbers. “This is the first time in a long time since the recession that we did not offer any incentives to our lenders to utilize our programs,” said District Director Franklin J. Sciortino of the local office. “When one considers the general economic conditions and uncertainty of small businesses, we are very pleased to see our lending volume remain steady,” he added. “We owe these accomplishments to our partnership with our local banking community.” Each year, SBA reviews certain fees payable to SBA by 7(a) participating lenders, Certified Development Companies, and borrowers to determine if any of those fees need to be adjusted to cover estimated subsidy costs of the 7(a) and 504 loan programs. Therefore, SBA has announced a reduction in the fiscal year 2014 yearly fee (also known as the on-going guaranty fee or the “annual service fee”) for all 7(a) loans, and a reduction in the upfront guaranty fee for all 7(a) loans in the amount of $150,000 or less. Additionally, there are no changes to fees for 504 loans approved during FY 2014. “We are also very pleased with the increase in 504 loan approvals this year,” Sciortino adds. “This fixed asset financing program also saw an increase in lending with 41 approvals for over $21 million. These projects alone support 1,044 local jobs.” “We saw a dramatic increase in the dollars lent to small businesses through our programs this past year. We are hopeful the elimination of fees for both our lenders and small businesses on loans $150,000 and less will help us build on this momentum,” said Sciortino. To summarize the SBA‘s impact, Sciortino adds, “SBA is proud to be able to provide assistance to small businesses in the district and help provide economic stability and growth to our community through the many entrepreneurs we help.” *The Buffalo District Office of the Small Business Administration serves the fourteen (14) western most counties of New York State, which includes Erie, Niagara, Chautauqua, Cattaraugus, Wyoming, Orleans, Genesee, Alleghany, Monroe, Livingston, Wayne, Seneca, Yates and Ontario counties. **New Businesses are defined as establishments 2 years old and less.