Record SBA Lending Shows Economic Growth in Delaware – Loans Help Create and Retain More than 1700 Delaware Jobs
The U.S. Small Business Administration’s (SBA) 2012 fiscal year lending totals in Delaware have set a new record, SBA Delaware District Director Tony Leta announced today. This unprecedented infusion of capital into Delaware’s small business community has helped to create or retain more than 1,700 jobs in the state.
During the 2012 fiscal year, SBA backed $57.7 million in Delaware loans, guaranteeing 133 loans in total. This is a 13% increase from the agency’s 2011 Delaware loan volume of 118 loans and a 73% increase in dollars lent, up from $33.3 million in FY 2011.
This also exceeds the all-time record for SBA-backed dollars lent in Delaware, set in 2006 at $42.3 million. Nationally, during the fiscal year which ended Sept. 30, SBA loan approvals supported $30.25 billion (53,848 loans) to small businesses in its two main loan programs, 7(a) and 504, compared to $30.5 billion (61,689 loans) in FY 2011.
“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,” Leta said. “We are equally fortunate to have a great cadre of SBA certified banks and credit unions that step up and meet the capital needs of the Delaware small business community.”
All counties in Delaware participated in the record: Kent County with a 37% increase in the number of loans made, New Castle County with a 114% increase in the amount of dollars lent, and Sussex County with a 30% increase in dollars lent over the previous year. Additionally, the certification of three banks as new SBA lenders this year boosted lending in the state: Applied Bank, MidCoast Bank, and First National Bank of Wyoming, combined, issued 18 loans for $13 million in their first few months of SBA lending.
M&T Bank continues to set the pace for the number of SBA loans in Delaware with 34 7(a) loans – which businesses can use for many purposes to start or expand – followed by Citizen’s Bank with 19 loans. Applied Bank leads the way in dollar volume approving $9.9M in loans.
Of note was lending to underserved markets; with 41 loans going to women-owned businesses, 30 to minority-owned businesses, and nine loans to veteran-owned businesses. Additionally, four of the loans were to businesses to increase their exports to foreign countries.
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 WSFS and MidCoast Community Bank with three loans each totaling $3.4 million. Delaware Community Development Corporation was the top Certified development Corporation (CDC) with ten 504 loans for $9.1 million.
“It’s likely these loans would not have been possible without SBA’s guarantee. With it, new businesses started and existing businesses expanded” Leta said. “SBA is proud to help support Delaware’s economic recovery.”
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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