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SBA Small Business Lending Reflects Strong Economic Trends

New York District Office Guarantees Almost $1 Billion in Lending during FY19; National loan volume reaches over $28 billion with 63,000+ approved loans
Release Date: 
Tuesday, October 15, 2019
Release Number: 
19-53
Contact: 
matthew.coleman@sba.gov

NEW YORK, NYThe U.S. Small Business Administration New York District Office announced today that it completed close to $1 billion in lending - $946,472,819 – during FY2019 (October 1, 2018 through September 30, 2019). This number encompasses the popular 7(a) loan program numbers in addition to 504 loans and microloans; these positive economic trends point to a strong economy.

The leading industries represented as recipients of SBA-backed instruments, based on NAICS codes throughout fiscal year 2019 were:

  • Retail (17.77% of total loan volume)
  • Construction (12.45% of total loan volume)
  • Hospitality/Accommodation & Food Service (11.77% of total), and
  • Professional, Scientific & Technological Services (9.97% of total loan volume).
     

Nationally, the SBA’s FY19 lending numbers showing that it guaranteed over $28 billion to entrepreneurs that otherwise would not have access to capital to start, grow, or expand their small businesses. The New York District Office’s total lending to small businesses and entrepreneurs throughout its 14-county area covering New York City, Long Island and the Lower Hudson Valley encompasses almost 3.4% of the nationwide total SBA lending figure.

“The SBA New York District Office is proud to support small businesses and entrepreneurs by guaranteeing almost $1 billion in lending during FY2019.Small businesses throughout New York City, Long Island and the Lower Hudson Valley leveraged almost $1 billion in capital that they would not have been able to access without SBA’s loan guarantee program in FY 2019,” said SBA District Director Beth Goldberg who heads the nation’s largest SBA field office encompassing New York City, Long Island and the Lower Hudson Valley.

Throughout FY2019, Long Island businesses leveraged almost $236 million in SBA loans; New York City-based companies borrowed over $540.27 million in SBA guaranteed loans; and small businesses in the Lower Hudson Valley leveraged $159,213,700 in SBA guaranteed loans.

In FY19, one noted significant growth was in dollars lent through the SBA’s Microloan program, with more than 5,500 loans approved for nearly $81.5 million, with $9,461,419 or 11.6% of the national total occurring in the New York District Office.

“When the economy is strong, lenders are more willing to provide capital without the need for the SBA’s federal loan guarantees,” said SBA Atlantic Regional Administrator Steve Bulger. “Even so, there are many entrepreneurs out there who still need the SBA’s assistance with capital access, training and mentorship. Together, small businesses, the federal government and our resource partners continue to support communities across the Metro New York region and the nation with jobs and financial stability.”

“A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out,” SBA Acting Administrator Chris Pilkerton said. “All of these loans are designed to create jobs and grow all small businesses in communities across the country. The SBA is here to help America start, grow, and expand opportunities for entrepreneurs.”

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, Lender Match has generated
4.4 million leads on behalf of small businesses to our lenders, and lenders have contacted more than 230,000 unique borrowers with financing options.

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

 


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.