U.S. Small Business Administration lending, both nationally and in Utah, continues to reflect strong economic trends during fiscal year 2019 - the period Oct. 1, 2018 - Sept. 30, 2019. Nationally, the agency approved 63,539 7(a), 504, and microloans loans worth $28.2 billion. In Utah, SBA approved 1,022 guaranteed loans worth $509.6 million, which created or retained more than 10,200 jobs in the state. Zions First National Bank is the top SBA 7(a) lender in the state based on number of loans approved (120 loans worth $23.3 million), and Mountain West Small Business Finance is the top 504 lender (182 loans worth $131.3 million).
"SBA's loan programs continue to show strong performance in 2019, and this strength should only continue given the President's pro-business agenda that will help more small businesses prosper in the coming year," said SBA Regional Administrator Dan Nordberg. "The SBA is building a more favorable environment for entrepreneurship and innovation in Utah, and is helping entrepreneurs with the tools they need to start, grow, and expand their businesses. I'm particularly proud of the work we've done to better assist underserved areas in both rural and urban communities.
A strong economy is powering America's 30 million small businesses, and the SBA's FY19 numbers bear that out. When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee. SBA's 504 and Microloan programs continued to grow from last year, as all of these loans are designed to create jobs and grow all small businesses in communities across the country.
"Utah's economy remains one of the strongest in the nation, and the SBA's small business lending programs continue to be a critical economic development driver in the state creating or retaining more than 10,000 jobs," said SBA Utah District Director Marla Trollan. "The SBA's Utah District office worked hard to increase its collaboration with local community partners across the state to better serve rural communities. As a result, we significantly increased our rural 504 lending by over 70 percent in number of loans, and over 100 percent in total dollars."
The following is a breakout of the FY 2019 Utah lending numbers.
* 769 loans valued at $327 million were approved through the 7(a) program
* 254 loans worth $182 million were approved through the 504 loan program.
* Average loan size for 7(a) loans was $426,000
* Average loan size for 504 loans was $716,000
* 122 loans worth $56.4 million went to minority-owned small businesses
* 29 504-loans worth $19.7 million were approved in rural communities
* 71 7(a) loans worth $32.5 million were approved in rural communities
* 129 loans worth $54 million went to women-owned businesses
* 23 loans worth $5.6 million were approved for veteran-owned businesses
* Accommodations and food service were the industries that received the greatest number of loans at 109 totaling $78.8 million
* 30 microloans (loans less than $50,000) for $1.2 million
* 7 export loans worth $6.1 million
About the 7(a) and 504 loan programs
The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. The CDC/504 loan program helps small businesses acquire fixed assets to promote economic development in the form of long-term fixed rate financing for fixed assets on reasonable terms. Under this program, the SBA authorizes CDCs (Certified Development Companies) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is generally $5 million; however, certain eligible energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each.