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SBA’s Eastern Pa. Loan Program Shows Strong 2nd Quarter Lending - Lehigh Valley

Lehigh Valley sees increase in 2nd quarter compared to last year’s record-setting SBA 7(a) lending; More than half billion dollars in loans to Eastern Pa. small businesses last fiscal year
Release Date: 
Tuesday, April 25, 2017
Release Number: 
Robert Goza (610) 382-3084 |

LEHIGH VALLEY– The U.S. Small Business Administration’s 7(a) Guaranteed Loan Program has loaned slightly more money in the Lehigh Valley area at the close of the second quarter of fiscal year 2017, compared to the same timeframe during last fiscal year’s record-breaking lending. Fiscal year 2016 was the highest year for dollars loaned in the agency’s history across the 40 eastern counties served by SBA’s Eastern Pennsylvania District.

SBA’s 7(a) program lending partners loaned more dollars to small businesses in the Lehigh Valley through the second quarter (in Berks, Carbon, Lehigh, Northampton and Schuylkill counties). SBA 7(a) lending in the area is up 58% in dollars loaned compared to the same time period last fiscal year. While small businesses received 11 fewer loans overall, SBA-backed 7(a) loans from Oct. 1, 2016 to March 31, 2017 saw larger loan sizes compared to the same period last year. Through the second quarter of fiscal year 2017, the Lehigh Valley saw 95 loans for $40.3 million with an average loan size of $424,819 in SBA’s 7(a) program, compared to 106 loans for $25.4 million with an average loan size of $240,413 during the same period last year.

Last fiscal year, more dollars were loaned to SBA’s Eastern Pennsylvania District small business borrowers through the 7(a) program than any other year in the area’s history. In the second quarter of fiscal year 2017, compared to the second quarter of last fiscal year, total dollars loaned is up 24%. 

“The continued strength of SBA lending in Eastern Pennsylvania is a direct reflection of the strong relationships SBA enjoys with our lending partners as well as the success of our lender education and outreach efforts,” said Director Antonio (Tony) Leta, SBA Eastern Pennsylvania District. "Our numbers this year are actually stronger than last year, when lending in our District was very high for SBA’s flagship 7(a) program when more than half a billion SBA-backed dollars were loaned to small businesses. This is great news for small businesses and the communities they serve. Capital is essential for small business success and growth, so ensuring access to capital is a very important role for our agency and in my District.”

In SBA’s efforts to help small businesses across the nation, lenders play an essential role. Through its lending partners, SBA-backed loans provide small businesses with access to capital that can cover the vast majority of business expenses, including short and long-term working capital, exports, and even refinancing existing debt under certain conditions.

SBA’s 7(a) program lending for the second quarter of fiscal year 2017 in the 40 counties of the Eastern Pennsylvania District is up 20% for $259,958,800 total dollars loaned. These loan dollars encompassed 701 total loans, leading to an average loan size of $370,840. During the second quarter of fiscal year 2016, the District saw 724 total loans for $217,356,700 total dollars loaned, with an average loan size of $300,216. In fiscal year 2016, SBA’s 7(a) program saw 1,532 loans totaling more than $512.2 million – resulting in the strongest year on record – compared to 1,324 loans for $437.3 million in fiscal year 2015. 

Through the second quarter the agency’s 504 Certified Development Company Loan Program, which provides growing businesses with long-term fixed-rate financing for major fixed assets such as land and buildings is also up 31% across the District, with 42 loans totaling $37.6 million in eastern Pennsylvania, up from 39 loans for $28.6 million dollars. 

For more information on SBA Eastern Pennsylvania District loan volume, visit SBA Eastern Pennsylvania District Loan Volume Report Fiscal Year 2017 (10/1/2016 to 03/31/2017).