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SBA Lending Activity in FY17 Shows Consistent Growth

In FY17, 7(a) loan volume reaches more than $25.44 billion; 504 loan totals continue to increase; minority lending reaches $9.58 billion
Release Date: 
Monday, October 16, 2017

New Hampshire – The U.S. Small Business Administration today announced fiscal year

2017 lending numbers showing increasing loan levels in small business lending through the 7(a) and 504 loan programs, as well as increases in lending to women, veterans and emerging  communities. 

SBA approved over 68,000 loans in the 7(a) and 504 loan programs in FY17.  These programs provided over $30 billion to small businesses.  

SBA’s flagship loan program, referred to as 7(a), provides small businesses with guaranteed loans covering the vast majority of small business needs including working capital, fixed and intangible asset financing, as well as refinance and export support through term and revolving loans.  In FY17, the 7(a) program supported a consistent number of loans -- more than $25.44 billion combined across 62,430 loans.  The SBA continues to streamline and improve access to its loan program for small loans and emerging communities, delivering more than $5 billion in smaller loans of $350,000 or less in FY17.

504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets, and are available through Certified Development Companies (CDCs), SBA’s community-based partners.  In FY17, the 504 program remained at zero subsidy, and grew to $5 billion in loan volume. 

During FY17, SBA lending had a significant positive effect on businesses that have historically faced greater challenges in obtaining conventional loans.  Minority business owners received a record combined $9.58 billion in 7(a) and 504 approved lending, or 31 percent of the SBA’s loan portfolio.

7(a) lending to women-owned businesses (both majority and minority owned) grew in total dollar and volume.  FY17 lending exceeded $7.5 billion, an increase of $298 million from FY16.

FY17 504 lending to women-owned businesses reached $955.2 million, a $277 million increase over the previous fiscal year. Loans to veterans totaled $1.15 billion for 7(a) and 504 lending.

There has been yearly growth in SBA’s loan programs, reflecting the important role of its lending partners. In FY17, SBA added 241 new lenders that have contributed to a healthy loan portfolio and one of the lowest loss rates in the SBA’s history.

In New Hampshire, 7(a) and 504 lending also saw an increase in both numbers and dollars of approved loans. The 7(a) increase was modest, with less than 1% increase in numbers and a 4.5% increase in dollars.  Our 504 lending increased more substantially by about 38% in numbers and 26.5% in dollars.  The 518 7(a) loans and 117 504 loans combined to 635 loans and nearly $124 million in small business financing. Loans to woman-owned and veteran-owned businesses also saw modest increases over the most recent fiscal years.

Greta Johansson, New Hampshire SBA district director, stated, “We had about 65 different lenders participate in SBA lending in New Hampshire, and their efforts led to 2017’s outstanding results.” Many of these lenders will be available to talk to the public at a Finance Fair on November 3 at Great Bay Community College.

Each year the SBA thanks all of its lending partners at an annual meeting and recognizes some specific contributions.  “We are looking forward to seeing many of our lending partners on November 3 where we will thank all, recognize TD Bank for its high-volume 7(a) lending, Granite State Development Corp for its high-volume 504 lending, The Provident Bank for its high dollar level of lending, and several other lenders for various achievements,” Johansson added.

During the fiscal year, SBA launched its online lender referral tool Lender Match.  Lender Match is an upgrade to LINC (Leveraging Information and Networks to access Capital). This tool helps connect small business borrowers with participating SBA lenders.  Lender Match is available to all SBA 7(a) lenders nationwide, including nonprofit lenders that offer free financial advice and specialize in micro lending, loans in SBA’s Community Advantage program, and the SBA’s CDC/504 loan program.  Lenders previously signed up for LINC will continue receiving referrals on the Lender Match platform.

During FY17, the SBA approved 27,263 disaster loans for a total of $1.7 billion. That total includes 24,121 home disaster loans for a total of $1.3 billion, and 3,142 business disaster loans for a total of $296 million.  The SBA processed 84,705 home loan applications and 10,882 business disaster loan applications—a total of 95,587 disaster loan applications processed.