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SBA Loans Lead to Job Creation in Nebraska
More than 300 New Jobs in 3rd Quarter as a Direct Result of Financing
Thanks to small businesses in Nebraska receiving much-needed cash through U.S. Small Business Administration loans this quarter, more than 300 new jobs are being created throughout the state, according to information provided by the federal agency’s district office in Omaha.
From April 1 to June 30, the SBA processed 102 loans for small businesses across the state for $34 million in loan volume. The average loan amount per approval jumped nearly 40 percent from the same period last year. To date, small businesses from Alliance to Yutan have been approved for 423 SBA-backed loans for $137 million.
With $137 million in loan volume to Nebraska’s small businesses for the current fiscal year, the state is on pace to challenge last year’s record of $153 million in financing.
“As job growth remains sluggish in many other parts of the country, we see that small businesses are thriving and expanding here in Nebraska,” said Leon Milobar, district director of the Nebraska District Office. “Nebraska’s continue to have faith in our economy. The proof is in the jobs these entrepreneurs are creating, and we’re proud through our lender partners to have put the financing these small businesses need into their hands. Our strong loan numbers and dollar amount clearly indicates evidence of steady economic growth in our state.”
Of those loans in the third quarter of Fiscal 2011, 48 went to existing small businesses, while 54 went to start-ups. The percentage of SBA-backed financing going to start-ups in Nebraska is the highest in the four-state region (Nebraska, Iowa, Kansas and Missouri) and is nearly twice as high as the rest of the country.
Eight projects for $4.5 million for small businesses were funded through the SBA’s 504 program, which allows growing small businesses long-term financing under low, fixed rates for land purchases, new construction, existing building acquisitions and renovations, machinery purchases and expansion of existing facilities. All but one of these loans were made in Nebraska by NEDCO of Lincoln, one of the leading community development corporations (CDC) in the nation.
Small businesses receiving SBA-backed loans in the first quarter of Fiscal 2011 include full-service restaurants, nursing care facilities, sporting goods stores, construction firms, a sheet metal manufacturer, a dance company, a bakery, a caterer, an advertising agency, and a wired communication carrier.