October 17, 2018
By Bob Coleman
Editor, C-Suite Wednesday
C-Suite Wednesday — SBA FY18 total loan volume reaches more than $30 billion with more than 72,000 approved loans
“We are providing tools, resources and access to capital for America’s 30 million small businesses, and our FY18 numbers bear that out,” says SBA Administrator Linda McMahon. “SBA’s 7(a) and 504 loan programs have never been more dynamic, easy to use and accessible—helping small businesses succeed and thrive. Our loan programs in FY18 continue to show strong performance, and we believe the President’s tax cuts and deregulatory actions will help more small businesses grow and prosper in the coming year.”
In FY18 there were 60,353 7(a) loans made, with a total dollar amount of $25.4 billion.
The SBA’s 504 loan program had another year of high performance for lending, with 5,874 loans made for a total dollar amount of over $4.75 billion. In FY18 SBA launched the 25-year Debenture, which offers an extra 60 months of financing at a fixed rate for small businesses. Since its introduction in April, over 1,000 debentures had been sold by the end of September.
“The 25-year Debenture is designed to help free up cash flow and offer fixed rates in a rising interest rate environment for 504 borrowers and we are pleased to see over $1 billion has been disbursed in less than six months,” says Associate Administrator for SBA’s Office of Capital Access William Manger.
In FY18 there was significant growth in the SBA’s smaller loans, including a record volume of dollars lent in the Microloan and Community Advantage Programs. Specifically, over 5,000 loans were approved for over $72 million in the Microloan program and over 1,000 loans for over $150 million in SBA’s Community Advantage program.
The SBA continued 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, and be connected with an approved SBA lender within 48 hours. To date, Lender Match has generated 3.6 million leads on behalf of small businesses to our lenders and over 160,000 unique borrowers have been contacted by lenders with financing options.
Another technological innovation was the development of the SBA’s Franchise Directory, which was launched this year and has resulted in an over 50 percent increase in eligible franchise brands. There are currently 3,192 brands on the Franchise Directory. When the directory was first published in October 2017 there were only 2,034 brands. In FY18, SBA has seen a year over year increase of over 21 percent in 7(a) and 504 dollars going to franchises.