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How To Qualify For SBA Loans In A Strong Economy

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Since its founding during the Eisenhower Administration, the Small Business Administration (SBA) has helped to make the American dream of business ownership a reality for countless entrepreneurs. I have long maintained that it is the most successful of all federal agencies. By providing government backing to lenders, the SBA helps provide capital to entrepreneurs who might not qualify for traditional bank term loans.
The agency facilitates small business loans through its network of qualified SBA lenders. During the recently completed Fiscal Year 2019, SBA loan volume exceeded $28 billion with more than 63,000 approved loans.
Otherwise, small business owners would not have access to capital to start, grow, or expand their companies. The SBA’s New York District Office alone completed nearly $1 billion in lending ($946,472,819) during FY2019.
“A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out,” SBA Acting Administrator Chris Pilkerton said. “When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee.”
Pilkerton said the SBA’s 504 loan program and Microloan program continue to grow and impact the economy since small businesses fuel the creation of jobs and grow all small businesses in communities across the country.
The most popular lending program is the SBA’s flagship 7(a) loan program made approximately 52,000 loans totaling $23.17 billion in the past fiscal year. 7(a) loans guarantees on loans to small businesses of up to $5 million that are commonly used for acquiring land, purchasing equipment, or working capital.
The CDC/504 loan program had another year of increased performance, with more than 6,000 loans made for a total dollar amount of more than $4.9 billion. Further, the SBA’s Microloan program (less than $50,000) had another record year with more than 5,500 loans approved for nearly $81.5 million.

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Linda Barbara

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