Small Business Administration loans appear to have rebounded in fiscal year 2010.
Loan enhancements first put in place under the American Recovery and Reinvestment Act of 2009, and extended last week in the Small Business Jobs Act of 2010, have driven SBA-backed lending.
In the past fiscal year, SBA supported more than $22 billion, or 54,833 loans, in lending to small businesses through its two largest loan programs – a sharp increase over lending in fiscal year 2009, which totaled $17 billion, or 47,897 loans. Average weekly loan volume for this year was $333 million – a 29-percent increase over 2009.
“SBA-backed lending continued the rebound started in fiscal year 2009 as a result of the fee reductions and higher loan guarantees made available last year under the Recovery Act,” said SBA Administrator Karen Mills. “The success of these loan enhancements has meant tens of thousands of small businesses have been able to get the capital they needed to not just survive the recession, but to grow and create much-needed jobs in communities all across the country.
The Small Business Jobs Act gives SBA the resources to approve another $14 billion in small business lending.