MN’s SBA Loans Totaled $626M in Fiscal 2012

MN’s SBA Loans Totaled $626M in Fiscal 2012

The loan volume declined modestly from the previous year, which was inflated by a temporary government program.

The U.S. Small Business Administration (SBA) said Tuesday that it approved 1,729 loan guarantees in Minnesota, collectively worth $626 million, during the fiscal year that ended September 30.

That’s down from 1,948 loan guarantees, worth $713 million, that were approved in Minnesota during the previous year.

The decline, however, can be attributed to “a temporary boost that the SBA got in the first quarter of fiscal year 2011 from the Small Business Jobs Act, which loosened the rules for borrowers to qualify, and that has since expired,” SBA spokeswoman Sherree Stratton told Twin Cities Business on Wednesday.

Banks and other lending institutions offer SBA loan programs to assist small businesses. Such loans are guaranteed by the SBA.

Despite the modest year-over-year decline, the SBA’s Minnesota office ranked seventh out of 68 offices throughout the country with respect to total number of loan approvals.

The Minnesota office ranked fifth in the nation for 504-Certified Development Company loans, which provide long-term, fixed-rate financing to small businesses for land and building acquisitions, as well as construction or renovation of existing facilities and sites. In Minnesota, the SBA approved 359 such loans worth $219 million during its most recent fiscal year.

The office also approved 1,370 loans worth $406 million through the SBA’s 7(a) Lender Guaranty Program, which provides loans to finance real estate, equipment, working capital, and inventory.

The SBA said that roughly 212 different Minnesota lenders used the SBA’s guaranteed loan programs during the most recent fiscal year. The 10 institutions that lended the most money in SBA loans, respectively, were: Minnesota Business Finance Corporation, Twin Cities-Metro Certified Development, Wells Fargo, SPEDCO, Bremer Bank, U.S. Bank, Anchor Bank, Prairieland Economic Development Corporation, Venture Bank, and Stearns Bank.

Meanwhile, the 10 institutions that made the most SBA loans in Minnesota were: U.S. Bank, Wells Fargo, Twin Cities-Metro Certified Development, Minnesota Business Finance Corporation, Bremer Bank, SPEDCO, Associated Bank, Highland Bank, Venture Bank, and Prairieland Economic Development Corporation.

Nationally, the SBA approved 53,848 loans worth $30.25 billion during the fiscal year that ended last month—marking the second-highest SBA loan volume on record. That volume is second only to the previous year, which was affected by the Small Business Jobs Act.

“Reaching such strong numbers is a clear sign that both the business and lending communities are regaining their confidence in the economic climate of the country,” SBA Administrator Karen Mills said in a statement. “It means that the credit markets are increasingly willing to help small businesses establish themselves, grow, and create new jobs for Americans.”