The Massachusetts District Office of the Small Business Administration (SBA) made 2,397 loans totaling more than $595 million in the fiscal year 2014, the office announced recently.
"The overall dollars are important, but in my opinion, the numbers matter more," Massachusetts SBA Director Robert H. Nelson said. "When I look at the number of 7(a) loans that were approved, it makes me real proud as far as our partnership with banks, with lenders who are just doing a lot of work getting capital out to small businesses."
For this most recent fiscal year, which ran from Oct. 1, 2013, through the end of September, the Massachusetts office guaranteed 2,112 loans totaling more than $295 million through its 7(a) loan guaranty program.
And the SBA touted its best ever year for its Certified Development Company/504 Loan program, recording 215 loans totaling more than $128 million.
Additionally, the Massachusetts District Office also guaranteed 70 loans totaling more than $1.25 million through eight SBA microloan intermediaries.
Nelson attributed much of the activity in this past fiscal year to the SBA’s elimination of fees on loans of $150,000 or less. The SBA also eliminated fees on loans of $350,000 or less to veterans and their spouses.
"I think across the country, small businesses saved about $20 million. In Massachusetts, it’s estimated at over $1 million," he said. "The fee savings on a typical loan of $150,000 is roughly $2,500 … It’s not a lot of money per loan, but anytime you can save small businesses money, that’s money in their pocket to help them with working capital."
The SBA also named Eastern Bank the No. 1 SBA 7(a) lender in Massachusetts for the fifth consecutive year, making 672 loans totaling about $37 million in the 2014 fiscal year. Eastern Bank was also the No. 1 SBA lender in the 504 program with 33 loans totaling more than $11 million.
Santander Bank was the second highest SBA lender last year, making 121 loans totaling just over $15 million, and Rockland Trust was the third highest, with 109 loans totaling a little more than $16 million. The top ten list of SBA lenders in Massachusetts was rounded out with Citizens Bank, Leader Bank, TD Bank, South Shore Bank, Cambridge Savings Bank, Commerce Bank & Trust Company, and Unibank for Savings.
ACCION USA in Boston was the No. 1 microlender last year by number of loans, with 16 loans totaling over $171,000, while South Eastern Economic Development Corp (SEED) in Taunton was the No. 1 microlender by dollar volume, with 11 loans totaling $388,500.
Granite State Economic Development Corp. was SBA’s leading Certified Development Company/504 lending partner in Massachusetts with 73 loans totaling over $48 million, while Waltham-based Bay Colony Development Corp. ranked second highest with 70 projects worth over $40 million. New England Certified Development of Wakefield was third with 36 projects totaling over $21 million.
"I think it’s good news for the small business community that so many banks and lenders are interested in SBA and helping them get to the yes decision," Nelson said.
