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SBA Hot Topic Tuesday — SBA Finances 33% of Small Business Loans Says Fed

January 20, 2015

By Bob Coleman
Editor, SBA Hot Topic Tuesday

The 2014 Joint Small Business Credit Survey by four Fed banks reveals SBA financing is a critical source of capital for Main Street.

One in three small businesses that received credit in the first half of 2014 came in the form of a SBA loan.

On the demand side, 59% of manufacturers sought SBA financing. Businesses with sales less than $250,000, defined a microbusiness by the Fed, 26% of those applied for SBA financing. Of the 22% of startups who applied for financing, one-fourth went SBA.

Check out all these SBA loan results from the Fed study.

Approval Rate by Product for All Firms that Received at Least some Credit

Loan — 61%
Line of Credit — 53%
Trade Credit — 50%
Credit Card — 50%
Leasing — 49%
Refinance — 46%
Commercial Mortgage — 36%
SBA Loan — 33%
SBA Line of Credit — 28%
Equity Investment — 8%

SBA Loan Application Stats

Microbusiness (<$250k) -- 26% Small ($250k - $1m) -- 42% Mid-size ($1m - $10m) -- 7% Commercial (>$10m) — 6%
Manufacturing — 59%
Retail — 27%
Professional — 15%
Construction — 11%

Startup (<5 years in business) -- 25% Grower (Profitable and increasing revenues) -- 17% Mature (>5 years in business, 10+ employees, holds debt) — 4%

The study was compiled by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia.

Read the complete report here:

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