The United States Small Business Administration (SBA) hit another lending record in fiscal year 2014, upping both its number and dollar volume of loans made under its 7(a) program.
By the end of fiscal year 2014, the SBA had approved 52,044 7(a) loans totaling $19.19 billion, representing a 12-percent increase in the number of loans and a 7.4-percent increase in the dollar volume over fiscal year 2013.
"As our economy continues to grow and recover, small businesses are the essential fuel to that continued growth," SBA Administrator Maria Contreras-Sweet said in a statement. "We know that America’s small businesses pack the biggest punch, creating two out of every three net new private sector jobs in the U.S. These small businesses are the cornerstone of our communities, so their success and expansion is vital to the nation’s economic growth."
The 7(a) program is designed to provide small businesses with the most comprehensive type of financial assistance to cover the vast majority of business expenses, such as short- and long-term working capital, exports and refinancing existing debt under certain conditions.
The SBA was originally authorized $17.5 billion in this past year’s lending program, but the agency sought and secured an increase in a continuing resolution approved in mid-September.
Spurred by fee relief implemented at the outset of the fiscal year, the SBA also increased its loans of $150,000 in the past fiscal year, approving 30,675 loans totaling $1.86 billion. That represents a year-over-year increase of 23 percent in the number and 29 percent in the dollar volume of loans.
The agency also eliminated fees on loans between $150,000 to $350,000 made to veterans under its Veteran Advantage initiative. Fee relief for both loans under $150,000 and for veterans was extended through the fiscal year 2015.
Finally, the SBA’s Office of Surety Bond Program increased its total contract value by 4 percent to $6.4 billion in fiscal year 2014. The total bond contract volume also increased 8 percent to $1.4 billion.
