MINNEAPOLIS - The Minnesota District Office announced today that the U.S. Small Business Administration approved 1,912 loan guarantees worth $594 million during federal fiscal year 2015 ending September 30. Last fiscal year they approved 1,755 loan guarantees worth $571 million.
The office is ranked sixth in the nation for the number of 504 Certified Development Company loans approved with 244 loans worth $139 million. The SBA 504 loans provide long-term fixed-rate financing to small businesses for the acquisition of land and buildings; and for construction, modernizing, renovating or restoring existing facilities and sites. Financing is provided jointly by the federal government and the private sector.
Also included in the total loan approvals were 1,668 loans worth $455 million made through SBA's 7(a) Lender Guaranty Program. Under this program, loan funds are provided by banks or other private lenders and are guaranteed by SBA. Loan proceeds can be used to finance real estate, equipment, working capital and inventory.
Loans to exporters in fiscal year 2015 increased over fiscal year 2014 from $15 million to $27 million.
The dollar volume of loans to veterans decreased slightly from FY 2014 to FY 2015 ($24 million vs. $21 million) but the number of loans increased from 71 to 82.
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"The Small Business Administration (SBA) had an outstanding year as a whole," said Minnesota District Director Nancy Libersky in a news release. "The loans approved in Minnesota show the growth of small business due to the increased access to capital."
The Minnesota District SBA Office serves all of Minnesota and is ranked twelfth in total loan approvals out of 68 SBA offices across the country. Over 197 different Minnesota lenders used the SBA guaranty loan program this year. SBA has guaranty loans with almost all banks in Minnesota.
The 10 most active financial institutions using the SBA programs in Minnesota (based on the number of loans made) are: Wells Fargo Bank National Association, U.S. Bank National Association, Minnesota Business Finance Corporation, Venture Bank, Bremer Bank National Association, 21st Century Bank, Highland Bank, Sunrise Banks National Association, Twin Cities Metro Certified Development Company, and SPEDCO.
In Minnesota, seven SBA Micro Loan intermediaries approved 144 loans for $2.2 million during fiscal year 2015. SBA's Micro Loan Program provides funds to qualified nonprofit organizations that serve as intermediary lenders.
The financial assistance section of SBA's national Web site has information on all SBA loan programs. Go to www.sba.gov for more information.
