Oct. 10, 2012 – The U.S. Small Business Administration reported Tuesday that FY 2012 SBA loan volume reached $30.25 billion, the second consecutive year that lending has exceeded $30 billion.
During FY 2012, which ended Sept. 30, the SBA approved $15.15 billion in loans under the 7(a) General Business Loan program, and $15.09 billion in loans under the 504 Certified Development Company program. SBA noted that the temporary 504 refinancing program was responsible for 26 percent of the 504 program loans made in FY 2012 and 34 percent of the dollar volume. The 504 refinancing program, part of the incentive package under the Small Business Jobs Act of 2010, recently expired.
The SBA’s CAPLines loan program, which provides lines of credit to small businesses such as manufacturers and government contractors, jumped from $118 million in loans in FY 2011 to $410 million in FY 2012. SBA’s Small Loan Advantage and Community Advantage program, which are aimed at spurring low-dollar small business loans, ended the fiscal year with $105.6 million and $25.2 million, respectively. Nearly 80 percent of the year’s SLA loans came after SBA implemented simplified processes on June 1.
The total dollar amount in FY 2012 was only slightly surpassed by the total for FY 2011, when numbers reflected strong loan incentives under the Small Business Jobs Act of 2010.
As part of its efforts to streamline and simplify the application process for many of its loan programs, the SBA has been encouraging lenders to take advantage of the agency’s updated processing systems, which now offers online loan applications for 80 percent of its programs.
In a recent op-ed in the CU Times, SBA Administrator Karen Mills touted credit union lending to small business and encouraged greater participation in its programs. Credit unions are active participants in a number of SBA programs, including the 7(a) and 504 programs.