SBA Small Business Lending Momentum Continues in FY18

Orange County / Inland Empire FY18 total loan volume reaches more than $1.2 billion with 1,883 approved loans and over 7,800 jobs created
Release Date: 
Thursday, November 1, 2018
Release Number: 
OCIE-19-01
Advisory Date: 
Thursday, November 1, 2018
Advisory Number: 
OCIE-19-01
Contact: 
Christopher.Lorenzana@sba.gov

SANTA ANA – The U.S. Small Business Administration announced FY18 lending numbers showing that it guaranteed over $30 billion to small businesses that otherwise would not have had access to capital.  The Orange County / Inland Empire (OCIE) District Office was the fifth highest lending market in the nation, surpassing $1.2 billion dollars, 59 percent of which went to new businesses. SBA lending also created 7,819 jobs in the OCIE district.  “We are providing tools, resources and access to capital for America’s 30 million small businesses, and our FY18 numbers bear that out,” SBA Administrator Linda McMahon said. “SBA’s 7(a) and 504 loan programs have never been more dynamic, easy to use and accessible—helping small businesses succeed and thrive.  Our loan programs in FY18 continue to show strong performance, and we believe the President’s tax cuts and deregulatory actions will help more small businesses grow and prosper in the coming year.”

In FY18 there were 1,624 7(a) loans made in the OCIE district, with a total dollar amount of more than $958 million. The 7(a) program is SBA’s flagship program, which offers guarantees of up to $5 million on loans to small businesses on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. 

“Supporting our diverse community is a priority in my district,” said District Director Adalberto Quijada. “We are dedicated to deploying business assistance resources that have a real impact and make people’s lives better through entrepreneurship and business ownership and that’s something to be proud of.”  Locally in FY18, 34 percent of 7(a) loans totaling more than $327 million went to women owned small businesses; and more than $21 million went to veteran owned small businesses. 

The SBA’s 504 loan program had another year of high volume performance in the OCIE, with 259 loans made for a total amount of more than $277 million.  The OCIE District Office ranked No. 2 in the nation on 504 loan dollar production.  In FY18 SBA launched a 25-year debenture, which offers an extra 5 years of financing at a fixed rate for small businesses, with nearly 50 percent of OCIE’s 504 volume at the 25-year term.

In FY18, local businesses seeking smaller dollar loans ($50K and under) successfully borrowed 331 loans totaling over $8 million.  Smaller loans allow individuals to start up, buy inventory, or purchase equipment.  The SBA Community Advantage loan program ($250k and under), targeting underserved markets, provided $14.8 million in the district, and saw a 150 percent increase from FY17. 

SBA continued to innovate and improve processes by leveraging enhanced technologies such as Lender Match and SBA’s Franchise Directory, which was launched this year and has 50 percent more eligible franchise brands than the previous year.  There are currently 3,192 brands, up from 2,034 in October 2017.  In FY18, the OCIE district office provided more than $9 million in franchise lending.

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

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About the 7(a) and 504 loan programs

The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. The CDC/504 loan program helps small businesses acquire fixed assets to promote economic development in the form of long-term fixed rate financing for fixed assets on reasonable terms. Under this program, the SBA authorizes CDCs (Certified Development Companies) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is generally $5 million; however, certain eligible energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each.

About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.