WASHINGTON, Oct. 2 - Small businesses turned
to the U.S. Small Business Administration for commercial financing
in record numbers in fiscal year 2006, setting records for both
the number of loans and the dollars loaned, SBA Administrator
Steven C. Preston said today.
The SBA backed a net 100,197 loans totaling $19.1
billion under its two primary small business loan programs during
the 12 months ending on Sept. 30. Both the number of loans and
the dollar amount is a single-year record for the agency. The
previous records were set last year, when SBA provided a net 94,554
loans worth $18.1 billion under the same two programs.
"We are very pleased with the small business
lending performance this past year and for each of the previous
five years," said Administrator Preston. "These numbers
reflect the confidence American entrepreneurs have in the U.S.
economy as well as in the SBA lending program that backs their
loans. I am thankful to our lenders and resource partners for
their steadfast commitment to small businesses.
"The SBA's loan programs have continued
to set records every year," Preston said. "Before FY
2002, the programs never produced more than 42,000 loans combined.
Since then, loan volume has more than doubled."
A third of the loans in FY 2006 went to minority
borrowers, 32 percent were to new start-up businesses, 22 percent
were to businesses owned by women and 21 percent were to businesses
located in rural areas. Increases were recorded in loans to African
Americans, Hispanics, Asian Americans and Native Americans.
"SBA is committed to continuing to increase
our support for underserved businesses and communities,"
Preston said.
Preston noted that borrower fees on basic SBA
7(a) loans under $150,000 are the same as they were in 1985.
"It is clear the changes we have made to
improve our lending programs have not only worked, but also have
provided the foundation for even higher lending levels in the
future," said Preston.
Both primary loan programs set records this year.
The 7(a) loan guaranty program -- most often used for working
capital -- produced 90,477 loans worth $13.46 billion. The Certified
Development Company, or 504, program, which is used for the purchase
of real estate and fixed assets, provided 9,720 loans worth $5.61
billion.
For details on the SBA's lending programs, visit
www.sba.gov.
