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SBA’s FY19 District Lending Helps Eastern Pa. Small Businesses

Release Date: 
Tuesday, October 22, 2019
Release Number: 
20191022-001
Contact: 
Robert Goza robert.goza@sba.gov | (610) 382-3084

EASTERN Pa. — In Fiscal Year (FY) 2019 the U.S Small Business Administration guaranteed more than $28 billion to small businesses that they otherwise would not have had access to. Through its lending partners, SBA-backed loans provide small businesses with access to capital that can cover the vast majority of business expenses, including short and long-term working capital, exports, and even refinancing existing debt under certain conditions.

“SBA lending plays an important role to help small businesses gain access to the capital they need to succeed and grow,” said Director Steve Dixel, SBA Eastern Pennsylvania District. “This speaks highly of the commitment of the SBA and our partners to the success of the entrepreneurial community.”

During FY19, for the 40 eastern counties of the SBA Eastern Pennsylvania District:

  • 1,285 small business loans for $449.3 million were approved in the SBA’s flagship 7(a) program
  • SBA’s 504 program made 75 loans for $68 million
  • SBA’s Microloan program (loans for less than $50 thousand) made 358 loans for $4.67 million 

“Small businesses getting the capital they need is great news for eastern Pennsylvania,” Dixel said. “The success of SBA lending is the direct result of the success of the Eastern Pennsylvania District’s lender outreach and education efforts and the strong relationships SBA enjoys with its lending partners, certified development companies and microlenders.”

In FY19 the SBA’s Eastern Pennsylvania District 7(a) loan program made 1,285 small business loans for $449.3 million with an average loan size of $349,675. A decrease in 7(a) loans is considered an indicator of a strengthening economy as lenders are more willing to provide capital without the need for federal loan guarantee. Compared to the previous fiscal year, the District’s 504 loan program made 29% more loans and loaned 41% more in total dollars with a corresponding 9% increase in average loan size with 75 loans for $68 million and an average loan size of $906,800. The District’s Microloan program made 358 for $4.67 million and an average loan size of $13 thousand: a 4% increase in microloans with a 14% increase in total dollars loaned and a 9% increase in average loan size.

Across the 40 counties of the Eastern Pennsylvania District, SBA’s 7(a) program in FY18 totaled 1,568 loans for $604.1 million, with an average loan size of $385,319. There were 58 loans in the 504 loan program for $48.4 million with an average loan size of $843,569. The SBA’s Microlender program made 343 loans for $4.1 million with an average loan size of $11,962.

For more information on SBA Eastern Pennsylvania District loan volume, visit: https://www.sba.gov/node/1649801

For more SBA 7a loan program information: https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans

For more SBA 504 loan program information: https://www.sba.gov/offices/headquarters/ofa/resources/4049

For more SBA Microloan information: https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/microloan-program%20

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For interviews or additional information, contact Rob Goza at robert.goza@sba.gov.

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.