SBA Sets Record with More Than $1.3 Billion in SBA Loans for Orange County and Inland Empire Small Businesses
Santa Ana District Office increases dollar volume of loans by 23.3% and number of loans by 9.7% from FY2012
SANTA ANA, CA - The U.S. Small Business Administration (SBA) today announced its third highest year of SBA lending to date, surpassed only by SBA’s two record years of supporting more than $30 billion in FY2011 and FY2012. In FY2013, SBA supported more than $29 billion in lending to America’s small businesses nationally.
SBA-backed financing to small businesses located in Orange, Riverside, and San Bernardino Counties increased 9.7% by number and 23.3% by dollar amount in FY2013 compared to the preceding fiscal year, according to agency records. During FY2013, 1,561 businesses were financed by participating SBA lenders, supporting $1,331,068,618 in financing. This compares to 1423 businesses financed for $1,079,617,054 in FY2012. SBA’s top three participating lenders in the Santa Ana District by number of units for FY2013 are U.S. Bank, JPMorgan Chase Bank, and Wells Fargo Bank.
According to District Director J. Adalberto Quijada, “The record year locally for SBA loan production is a direct result of the strong relationships we enjoy with our lenders. We are proud of our lender outreach and training opportunities, and we strive to deliver excellent customer service by being responsive and available. Our lending partners have provided valuable feedback that has resulted in streamlined and simplified processes and they’ve responded by providing a record amount of SBA loan dollars to local small businesses that demonstrate good management ability and business acumen that need access to capital to start, grow, and succeed.”
Scott McVean, owner of Pain du Monde Kitchen, recently applied for and received an SBA loan to open his fifth restaurant location. McVean, who had never applied for bank financing during his 25 years in business, credits the loan with enabling him to grow his business, hire more people, and serve the community. “This is a totally different business than my other four locations – it’s my first full size, free standing restaurant with a three meal menu, so the capital requirements are much more intensive. I couldn’t have done it without SBA and Commerce National Bank.” Pain du Monde’s newest location, which has been open approximately 3 months and has approximately 55 employees, is located in Irvine.
SBA’s streamlining of the Small Loan Advantage (SLA) programs continued to produce dramatic results, increasing the number of lower-dollar SBA 7(a) loans going to small businesses and entrepreneurs in underserved communities. The program, which is a key 7(a) loan initiative designed to expand access to loans under $350,000, was first launched in February 2011 and revamped in June 2012. SBA significantly reduced paperwork for the SLA program and expanded its pool of lenders—changes that have resulted in a more than 300 percent increase in SLA loans and an over 700 percent increase in the number of lenders using the program. In FY 2013, SBA backed more than 4,000 loans for nearly $625 million through the SLA program nationwide, including approximately $14 million in such loans to borrowers in the Santa Ana District.
As with SLA, CAPLines, a program that provides working capital lines of credit designed to help small businesses with their short-term working capital needs, saw a successful year in part because of measures to streamline loan processing. In FY 2013, 682 CAPLine loans were approved for more than $500 million across the nation, including 16 loans for $12,115,000 to borrowers in the Santa Ana District. In the two full fiscal years since the program was re-designed, SBA has cumulatively approved 1,200 loans after only doing 1,300 over 15 years.
In FY 2013, SBA also supported more than 7,700 504 loans which provide small businesses with long term, fixed rate financing to acquire real estate and major fixed assets, for a total of more than $11.7 billion. Although this is a slight decrease compared with FY 2012, this decrease demonstrates the importance of SBA’s 504 Refinancing Program, which temporarily allowed small business owners to use our 504 program to refinance commercial real estate and other fixed assets and gave SBA a record year for 504 lending in FY 2012. That program was authorized by the Small Business Jobs Act and expired in 2012, but a one year extension of the program was included in the President’s FY14 budget. In the local market, SBA 504 loans actually saw an increase in FY2013, with 315 504 loans supported for a total of $632,412,000, compared to 289 504 loans for $554,452,054 in FY12.
For more information about these and other SBA programs, visit the SBA website at www.sba.gov, or contact SBA’s Santa Ana District Office at (714) 550-7420.
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