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SBA Small Business Lending Momentum Continues in FY18

SBA Maine to recognize leading lending partners during ceremony in Augusta
Release Date: 
Friday, November 16, 2018
Release Number: 
19-01D
Contact: 
Keith Lind

AUGUSTA – The U.S. Small Business Administration announced FY18 lending numbers showing that it guaranteed over $83 million to small businesses in Maine that otherwise would not have had access to capital.

“The success of SBA loan programs here in Maine is thanks to the strong commitment of lenders who utilize SBA programs to assist entrepreneurs with obtaining greater access to vital capital,” SBA Maine District Director Amy Bassett said. “As we continue to see improved conditions for small business here in Maine, and innovations made in our lending programs, we hope to build on the achievements of the past year.”

In FY18 there were 289 7(a) loans made, with a total dollar amount of nearly $50 million. The 7(a) program is SBA’s flagship program, which 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 SBA’s 504 loan program had another year of high performance for lending, with 59 loans made for a total dollar amount of over $32 million. In FY18 SBA launched the 25-year Debenture, which offers an extra 60 months of financing at a fixed rate for small businesses. Since its introduction in April, over 1,000 debentures had been sold by the end of September.

 In FY18 there was significant growth in the SBA’s smaller loans, including a record volume of dollars lent in the Microloan and Community Advantage Programs. Specifically, 92 loans were approved for over $1.4 million in the Microloan program. This represents more than double the number of loans in the previous year, and a 75% increase in dollars lent through the Microloan program.

SBA will be honoring leading lenders at a ceremony to be held at the Governor Hill Mansion in Augusta on December 4th:

 

TD Bank approved 88 loans for $5.5 million making them the leading Maine SBA 7(a) lender

Bangor Savings Bank was named the Leading SBA 504 Third Party Lender for participating in 14 projects and providing $7.8 million in financing

 

Granite State Development Corporation was Maine’s leading Certified Development Company (CDC) approving 44 504 loans for nearly $25 million

 

Infinity Federal Credit Union approved 11 loans for $910,000 making them the Leading Credit Union Lender   

 

Community Concepts Financing Corp. was Maine’s Leading SBA Microlender originating 43 microloans for $841,000

 

MaineStream Finance will be presented with the District Director’s Award for their innovative lending that assistance 13 micro-borrowers obtain over $62,000 in financing

 

Maine SBA’s STAR Award will be presented to an individual lender who has gone above and beyond this year in their efforts to assist a SBA loan borrower