Demand for loans maintains record pace

According to an April 8 SBA news release, in the first half of fiscal year 2005, which began Oct. 1, SBA approved 46,603 loans totaling $6.98 billion under its flagship 7(a) guaranteed loan program.

By comparison, SBA approved 36,646 loans worth $5.67 billion for the same period the previous year – and 29,342 loans worth $4.85 billion two years ago.

“The trends we saw at the end of the first quarter are continuing and in fact, we’re doing even better,” said SBA Administrator Hector V. Barreto, in the release. “We had a record year last fiscal year and we’re on track to have another one this year. These numbers also demonstrate continued confidence on the part of the American entrepreneurs who contribute to economic growth and job creation.”

SBA also posted gains in its certified development company, or 504, loan program.

Through the first six months of the fiscal year, the 504 program had issued 3,871 loans worth $2.04 billion, more than 4 percent ahead of the same period a year ago, when the program had 3,709 loans for $1.75 billion.

Legislation signed into law by President Bush in December makes more than $21 billion available to small businesses through the SBA’s two main loan programs. The budget gives SBA the capacity to

support $16 billion in small business lending under the 7(a)

program and $5 billion under the 504 program.

Additionally, the maximum government loan guarantee increased from $1 million to $1.5 million and the program is operating smoothly on a zero subsidy basis, without a congressional appropriation, meaning that it pays for itself through fees paid by lenders and borrowers.

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