State Businesses Receive $229 Million In SBA Loans In 2012

WASHINGTON, D.C. — With loan volume steadily increasing for the past six quarters, the US Small Business Administration’s loan programs posted the second largest dollar volume ever in FY 2012, supporting $30.25 billion in loans to small businesses. That amount was surpassed only by FY 2011, which was heavily boosted by the loan incentives under the Small Business Jobs Act of 2010.

Results for the Connecticut District Office were similar to the national totals in the federal government’s 2012 fiscal year ending September 30. SBA in Connecticut backed almost $229 million.

“SBA backed loans continue to add to the growing Connecticut economy with a strong partnership with national, regional and community banks,” says Connecticut District Director Bernard M. Sweeney.

The near-record pace was driven in part by a record year for the Certified Development Company (504) loan program, which supported $15.09 billion in small business credits. The strong performance of 504 loans was boosted by the temporary 504 refinancing program, which was responsible for 26 percent of the 504 program loans made in FY 2012 and 34 percent of the dollar volume.

The recently expired 504 refinancing program was part of the incentive package under the Jobs Act.

“Reaching such strong numbers is a clear sign that both the business and lending communities are regaining their confidence in the economic climate of the country,” said SBA Administrator Karen Mills. “It means that the credit markets are increasingly willing to help small businesses establish themselves, grow and create new jobs for Americans.”

Over the past year, SBA began streamlining and simplifying many of the loan programs to provide more access and opportunity for both lenders and small businesses. As part of this effort, SBA encouraged lenders to use more of their own paperwork and the agency’s updated processing systems, so that more than 80 percent of its loan applications can now be processed online.

SBA and Connecticut’s Small Business Key to the Future will once again hold their annual SBA Lenders award ceremonies at the Trumbull Marriott Merritt Parkway Hotel on October 16.

For more information on attending this program contact Jessica Rivera, 860-240-4638 or e-mail her at Jessica.Rivera@sba.gov.

For more information on any of SBA’s programs or services for small businesses in Connecticut, call the SBA Office at 860-240-4700 or helpline at 800 U ASK SBA or TDD 704-344-6640, or visit the SBA’s extensive website at www.sba.gov/ct.