Another Record Year for SBA Lending in Delaware

Loans Help Create and Retain More than 1400 Delaware Jobs

The U.S. Small Business Administration’s (SBA) 2013 fiscal year lending totals in Delaware have set a new record, SBA Delaware District Director John Fleming announced today. This unprecedented infusion of capital into Delaware’s small business community has helped to create or retain more than 1,400 jobs in the state.

During the 2013 fiscal year, SBA backed more than $57.8 million in Delaware loans, guaranteeing 130 loans in total. This is the second year in a row that the amount of dollars lent has set an all-time record and represents a 73% increase in the last two years.

Nationally, during the fiscal year which ended Sept. 30, SBA loan approvals supported nearly $30 billion by backing 54,106 loans to small businesses in its two main loan programs, 7(a) and 504.

“We are extremely fortunate to have a strong small business community in Delaware that is responding to more favorable economic conditions by expanding their businesses and hiring new employees,” Fleming said. “We are equally fortunate to have a great cadre of SBA participating banks and credit unions that make the loans to meet the capital needs of the Delaware small business community.”

M&T Bank continues to set the pace, as it has for several years, for the number of SBA loans in Delaware with 33 7(a) loans – which businesses can use for many purposes to start or expand – followed closely by First National Bank of Wyoming with 32 loans. This was First National Bank of Wyoming’s first full year as a certified SBA lender and they are off to a great start assisting small businesses in Delaware. This contributed to Kent County leading the way, posting a 38% increase in the number of loans made.

Parke Bank led the way in dollar volume, approving $7.4 million in four 7(a) loans. Other banks making more than $4 million in 7(a) loans were Capital source Bank, Noah Bank, and First National Bank of Wyoming.

Of note was lending to underserved markets; with 48 loans going to women-owned businesses, 30 to minority-owned businesses, and 13 loans to veteran-owned businesses. First State Community Loan Fund completed seven of the new Community Advantage loans specifically designed for underserved markets; more than any institution in SBA’s Region Three.

The record pace was driven in part by the Certified Development Company (504) loan program which provides approved small businesses with long-term, fixed-rate financing to acquire durable assets, typically land and buildings, for expansion or modernization. The strong performance of 504 loans was driven by M&T Bank with four loans totaling $4.4 million and Crown Bank making one loan for $7.6 million. Delaware Community Development Corporation was the top Certified development Corporation (CDC) with five 504 loans for $4.9 million. DelVal Business financial Services did one loan for $5.5 million.

“It’s likely that many of these loans would not have been possible without SBA’s guarantee. With it, new businesses started and existing businesses expanded,” Fleming said. “SBA is proud to help support Delaware’s economic recovery. We look forward to working closely with our lenders to set even more records in the years to come. Recently, the SBA waived all fees for loans under $150,000 and we expect this policy to drive an additional increase in the number of smaller loans made across the state. ”

The SBA is an independent federal agency to assist small businesses start, grow, and prosper. The SBA provides assistance by: (1) making loans to help families and businesses recover from national disasters and (2) providing loan guarantees to commercial financial institutions for working capital (7a loans), buildings/land/equipment (504 loans through the Certified Development Corporations), and for exports. Through our resource partners, the SBA also offers a variety of business development programs and services such as training, government contracting and export assistance. SBA resource partners include Small Business Development Centers, Women’s Business Centers, and SCORE. For information on the SBA’s programs and services contact us at 302-573-6294 or www.sba.gov.

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