SBA Small Business Lending Momentum Continues in FY18

Release Date: 
Thursday, October 25, 2018
Release Number: 
18-62-ND
Contact: 
Sheri.Weston@sba.gov

FARGO, N.D. – U.S. Small Business Administration (SBA) lending, both nationally and in North Dakota, continued to gain momentum during Fiscal Year 2018 – the period October 1, 2017 through September 30, 2018.

“The SBA continues to power small business growth and economic development across North Dakota,” said SBA Region VIII Administrator Dan Nordberg. “The small business community has benefited from a very good pro-business environment which was enhanced this year by the President’s tax cuts and reduction of red tape and regulations.  The end result has been more jobs being created in both rural and urban communities statewide.”

In North Dakota, SBA approved 169 guaranteed 7(a) loans worth $37.1 million and ranging in size from $5,000 to more than $4 million. Nationally, there were approximately 60,353 7(a) loans made, with a total dollar amount of $25.37 billion. SBA’s flagship loan program, referred to as 7(a), provides small businesses with comprehensive financial assistance 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.

The SBA’s 504 loan program saw an increase in lending, with 55 loans made in North Dakota for a total dollar amount of over $30 million. Nationally, 5,874 loans were made for a total dollar amount of over $4.75 billion. 504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets for expansion or modernization. 504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners.

“I’m proud of the relationship our office has developed with lenders across North Dakota,” said SBA North Dakota District Director Al Haut. “Working with thirty-nine lenders, covering all corners of the State, SBA-backed loans helped small businesses get the capital they needed to start and expand their businesses in 42 communities across our state.  These businesses create jobs and give back to help drive their local and state economies and help boost our national and global economies.”

The SBA continued to innovate and improve processes by leveraging enhanced technologies. Lender Match is an SBA technology platform that gives entrepreneurs the ability to complete a quick online form, without registration or cost, and be connected with an approved SBA lender within 48 hours. To date, Lender Match has generated 3.6 million leads on behalf of small businesses to our lenders and over 160,000 unique borrowers have been contacted by lenders with financing options. 

Another technological innovation was the development of the SBA’s Franchise Directory, which was launched this year and has resulted in an over 50 percent increase in eligible franchise brands. There are currently 3,192 brands on the Franchise Directory. When the directory was first published in October 2017 there were only 2,034 brands.  In FY18, SBA has seen a year over year increase of over 21 percent in 7(a) and 504 dollars going to franchises.

For more information about SBA’s loan programs, financial assistance and other services, visit www.sba.gov.

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