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SBA lending tops $76 million in North Dakota

Release Date: 
Wednesday, October 16, 2019
Release Number: 
19-53 ND
Contact: 
Sheri.Weston@sba.gov

FARGO, N.D. – U.S. Small Business Administration (SBA) lending, both nationally and in North Dakota, continues to reflect strong economic trends during fiscal year 2019 – the period Oct. 1, 2018 – Sept. 30, 2019.  Nationally, the agency approved 63,539 7(a), 504, and microloans loans worth $28.2 billion. In North Dakota the SBA approved 183 7(a) and 504 loans worth $76.1 million to North Dakota small businesses. Thirty percent of the loans approved were to small firms in rural and/or HUBZone areas.

A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out. When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee. SBA’s 504 and Microloan programs continued to grow from last year, as all of these loans are designed to create jobs and grow all small businesses in communities across the country. 

 “SBA’s loan programs continue to show strong performance in 2019, and this strength should only continue given the President’s pro-business agenda that will help more small businesses prosper in the coming year,” said SBA Regional Administrator Dan Nordberg. “The SBA is building a more favorable environment for entrepreneurship and innovation across North Dakota, and is helping entrepreneurs with the tools they need to start, grow, and expand their businesses.   I’m particularly proud of the work we’ve done to better assist underserved areas in both rural and urban communities.”

In North Dakota, SBA approved 124 7(a) loans worth $40.6 million. These loans ranged in size from $5,000 to $4.5 million. North Dakota’s top 7(a) lenders in FY19 were VISIONBank, Bremer Bank, U.S. Bank, Capital Credit Union, and Choice Bank.

The SBA 504 loan program saw a 17 percent increase in total dollars with 59 loans approved worth $35.5 million. Dakota Business Lending is the top SBA 504 lender in North Dakota with 34 loans worth $23 million.

The Microloan program, loans under $50,000, saw 10 loans approved worth $213,840. Lake Agassiz Regional Development Group is SBA’s Microlender in North Dakota.

“Our lending partners are critical to helping us provide capital to small business so they can start, grow, and expand,” said SBA North Dakota District Director Al Haut. “Thirty-five banks, credit unions and development companies approved SBA loans in 40 communities across North Dakota.  This indicates strong support for small businesses statewide.”

In addition to the strong lending numbers, the SBA continues 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 to the user to connect with an SBA-approved lender within 48 hours. To date, more than 150 North Dakota entrepreneurs have used Lender Match to connect with the more than 50 SBA-approved lenders registered in the program.

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), 504 and Microloan 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 provides capital to small businesses for the acquisition of fixed assets to promote economic development in the form of long-term fixed-rate financing on reasonable terms. Under this program, the SBA authorizes Certified Development Companies (CDCs) 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 up to $5.5 million.  The Microloan program provides loans to not-for-profit lending intermediaries that, in turn, make loans of up to $50,000 to small businesses on reasonable terms.

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.