MIAMI – The U.S. Small Business Administration recently announced another record-breaking year totalling nearly $1.3 billion in small business lending in the South Florida District, and $24.12 billion nationally.
This year makes the second consecutive year South Florida has exceeded the billion-dollar lending mark.
“It is with great pleasure that my colleagues and I celebrate another record-breaking lending year in South Florida,” said SBA South Florida District Director Francisco “Pancho” Marrero. “This noteworthy accomplishment could not have been possible without the hard work and dedication of our SBA staff, resource partners and our network of robust financial institutions.”
In FY-16, the District’s approvals in the SBA’s flagship 7(a) loan program totaled 2,406 for over $1 billion, reflecting a 12% increase in loans approved and 8% increase in dollar volume over the last year’s performance.
The SBA’s primary lending vehicle, the 7(a) Loan Guaranty program, provides long-term financing to acquire equipment and machinery, inventory, fixtures and accessories, renovations, purchase land, build new buildings, purchase existing businesses, and for the repayment of debts.
Under the agency’s 504 Certified Development Company Loan program, the District backed 303 loans for $208 million. This loan program allows the SBA to promote economic development by creating jobs and providing small business owners with long-term, fixed financing.
U.S. Small Business Administration Lending Nationally
FY16 lending numbers showing record levels of small business lending through the 7(a) and 504 loan programs, as well as significant increases in lending to women, veterans and underserved communities.
The SBA approved more than 70,000 loans in the 7(a) and 504 loan programs in FY16. These programs provided nearly $28.9 billion to small businesses and supported nearly 694,000 jobs.
The agency’s 7(a) program supported a record number of loans — more than $24.12 billion combined across 64,073 loans. Both the total number and dollar amount of 7(a) loans increased by 1 percent and 2.6 percent respectively over the previous year. SBA continues to streamline and improve access to its loan program for small loans and underserved markets delivering more than 44,000 small loans of $350,000 or less in FY16.
SBA lending had a significant positive effect on various underserved groups in FY16. Minority business owners received a record combined $8.65 billion in 7(a) and 504 approved lending. This record reflects the priority of the Administration and SBA in helping communities that historically find it difficult to access capital.
Also under the 7(a) loan program, the agency recorded an increase in lending to Hispanic-American small business owners by 65 percent, by 45 percent to African-American small business owners, 44 percent to Asian-American small business owners, 33.8 percent to women-owned small businesses and 12.9 percent to veteran-owned small businesses from fiscal year 2011 to fiscal year 2016.
“The SBA made strides ensuring business capital reaches those who need it most,” said Marrero who was named amongst the top 100 bankers and financial executives in the 2016 South Florida Business Journal’s list of Power Leaders in Banking and Finance. “This includes gains in SBA-guaranteed lending for business owners who are women, veterans, Hispanics, African-Americans, Native-Americans, Asian Americans, and more.”
A complete list of the South Florida District’s fiscal year report and historical lending data can be obtained on the District’s website at www.sba.gov/southflorida, under the Lending Activity section.
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