Liberty SBF’s SBA and Owner Occupied Lending Report For Week of 10/30/13
Rising Small Business Lending Index
According to Reuters, U.S. small business borrowing rose last month from a year earlier, according to an index released on Tuesday that tracks lending, signaling moderate growth ahead for the economy as a whole.
The Thomson Reuters/PayNet Small Business Lending Index, which measures the volume of financing to small companies, registered 109.7 in September, down 6% from August but up 16% from the same month a year earlier. Delinquencies of 31 to 180 days held in September at 1.47% of all loans made, according to the Thomson Reuters/PayNet Small Business Delinquency Index. That’s a record low.
Accounts overdue as a percentage of all loans have fallen steadily since rising as high as 4.73% in August 2009. PayNet collects real-time loan information such as originations and delinquencies from more than 250 leading U.S. lenders.
Wells Fargo largest SBA lender in the US (again)
For the fifth straight year, Wells Fargo & Company is America’s top SBA lender in dollar volume, approving a record $1.47 billion in SBA 7(a) loans for small businesses in federal fiscal year 2013 (Oct. 1, 2012 – Sept. 30, 2013). The company increased its dollar volume of SBA 7(a) loans by 18.3% from a year ago. An SBA preferred lender in all 50 states, Wells Fargo also is the second largest SBA lender by units, extending 3,481 SBA 7(a) loans in federal fiscal year 2013.
SBA Eliminates Fees on Loan Program
The U.S. Small Business Administration (SBA) wants to drive more loan activity but in smaller amounts by waiving fees for its primary lending program. The SBA eliminated the upfront 2% fee, plus an ongoing monthly service fee for loans of $150,000 and less, in hopes that it will make it easier for smaller businesses to access the credit they need to grow, said Brian Picarazzi, senior area manager for the SBA’s regional office in Grand Rapids.
The SBA made the change for the new 2014 fiscal year that started Oct. 1 based on what it has been hearing from small business owners. Waiving the fee is meant to lower the cost of borrowing for smaller businesses, Picarazzi said.