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: