Small Business: SBA lending to small firms up nationally, locally

Sam Jones is the Region VII SBA Administrator.

Its been a banner fiscal 2003 year for SBA, with the use of its loan products and guarantees up 12 percent across the nation from last year.

The U.S. Small-Business Administration has increased lending to small businesses both in the number of loans (almost 74,000) and the dollar amounts over last year.

And perhaps more importantly, this lending has contributed to our small-business customers ability to create or retain more than 570,000 jobs nationwide.

Region VII did so well in using its share of the federal dollars to offset the cost of this lending especially in rural areas of Kansas, Nebraska, Missouri and Iowa. More than 3,000 small business owners benefited from our being around, using SBA guarantees for more than $540 million.

The jump in rural lending constitutes almost half of the increased lending in Region VII over last year, with our lending to rural areas and the Springfield area is considered one up by 13 percent over our total lending on our flagship 7(a) loan guarantee program, and 6 percent on our 504 program, lending through community development companies. Our efforts to reach out to small and rural community lenders have proven fruitful.

The use of our enhanced SBAExpress loan guarantee product has doubled over last year a figure that tells me the improvements made to this program, initially designed to streamline the use of SBA products for rural and community lenders, is working and will probably continue to provide more dollars to more small companies in smaller communities. Being from a small community myself, this increase is of particular interest, and I am proud that our district offices have made special efforts to market SBA products throughout their district territories.

Perhaps the fact that there is now a laundry facility in a town of 1,800 people, making it easier for its younger folks starting out to live there, means more than the actual number of loans or volume dollars of loans SBA has helped secure for small business customers who would not have otherwise had the credit.

Or, maybe the grocery store on the corner now offering deli products, reducing drive time to another town for similar goods, makes the point better.

Or, the ability of a local manufacturing company to retain its salaried employees and make its product for another year during economic recovery.

These are examples of the real success increased lending over last year represents. They are the fruits of increased marketing and results-oriented programs. So, if you are a small-business owner caught in the money-flow crunch, or you are seeing the need in your community for a business or service that can enhance its quality of life, please give SBA a call at our Springfield Branch Office at 417-890-8501. Lenders are poised and ready to help without enhanced products.

Expert counselors through our Service Corp of Retired Executives and our Small Business Development Corporations are serving more clients than ever, but are determined to give you their best advice to see your business grow or start your business out right.