Sluggish Start to SBA 7(a) Loans in 2014 But Small Business Lending is Up
Liberty’s SBA and Owner Occupied CRE Lending Report
The SBA released its “Lending Statistics for Major Programs” as of Dec. 6, providing stats for the 7(a) and 504 loan programs.
“Overall, the 7(a) program continues a sluggish start into FY 2014 with a YTD total volume of $2.58 billion, an 11% fall from the same period at 12/06/12,” wrote the Coleman Report in its review of the release. “But that figure does register an 11% rise above the YTD loan totals recorded in FY 2012, indicating that the trajectory is positive.”
Because of the government shutdown, FY 2014 gets off to a slower start. The average size of the 7(a) loan fell about 2.2% from FY 2013.
As the year ends, we spend a lot of time reviewing what happened in 2013 and how it met (or didn’t meet) expectations.
Small business lending at banks improved this year, according to the Biz2Credit Small Business Lending Index.
The survey found an increase to 17.4% in November 2013 from 14.3% in October of small business loan approvals at big banks. Small banks also lend more to small businesses, increasing from 44.3% in October to 49.7% in November.
“Big banks have begun to feel the pressure to lend more money with the Dodd-Frank reform bill nearing and we should expect to see more changes accordingly in the next year,” said Biz2Credit CEO, Rohit Arora in a statement.
On Dec. 19 jobless claims was at 379,000, an increase of 10,000 from the previous week’s figure of 369,000, according to the Department of Labor report released on Thursday.
Bloomberg News reported that this figure was “an almost nine-month high.”
The good economic news prompted the Federal Reserve to pare back its bond-buying program by $10 billion a month to $75 billion.
Liberty SBF’s Small Business Administration (SBA) Weekly Rate Sheet 12/23/2013
3.25% I WSJ PRIME FLOATING RATE
4.15% I 5-YEAR LIBOR SWAP FIXED RATE
To see more about our SBA loan program click here.