April 14, 2015
By Bob Coleman
Editor, Hot Topic Tuesday
SBA’s 2014, 148 page, annual report is an interesting read.
There is pertinent information the agency publishes that SBA lenders should know.
First, it’s always useful to refresh our knowledge of SBA’s three overall strategic goals.
1) Growing and businesses and creating jobs
2) Serving as the voice for small business
3) Building an SBA that meets the needs of today’s and tomorrow’s small businesses
Other than the outlier agitators, I believe everyone would agree SBA has nailed it in explaining its mission with these three statements.
The annual report also lists specific two-year agency goals, two of interest to lenders.
1) Increase active lender participation
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) loan program each year in FY 2014-2015.
The SBA increased small business access to capital by adding new and returning lenders to the 7(a) program. While the Agency missed its FY 2014 target by 5 percent, 308 new lenders provided nearly $317 million in new loans to small businesses.
2) Maximize small business participation in government contracting
3) Expand the base of lenders for small business exporters
Expand small business access to export financing by increasing the number of lenders to providing export financing solutions to 555 and the number of small business exporters receiving financing through SBA loan programs to 1,480 by FY 2015.
The SBA met 98 percent (513 lenders) of its FY 2014 export lender goal, and the SBA met 98 percent (1,392 small businesses assisted) of its small business assisted goal.
4) Increase the disaster loan application rate