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Shorter Term SBA Lending Up
by Jon Greenberg on
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The latest SBA lending data shows that borrowing under the 7 A program is up by around 65%. Borrowing under the 504 program, which is for bigger ticket items like heavy equipment, is down about 40%.
The trend reflects businesses taking advantage of better terms under the stimulus act (lower fees, up to 90% guarantee for the lenders) to deal with immediate capital needs. They remain cautious about longer term commitments.
Also, according to Wit Jones at the SBA, the local institutions like Northway and Laconia Savings Bank are the ones making the loans. The national banks like Bank of America are exiting the SBA scene.
Table of Activity from Wit Jones
| 7(a) | ||
| 3/16/09 – 5/11/09 | 113 loans | $13,164,000 |
| 3/16/08 – 5/11/08 | 67 | 7,903,600 |
| Up | 46 loans | Up $5,260,400 |
| Up | 68% | 66% |
| 504 | ||
| 3/16/09 – 5/11/09 | 14 loans | $6,567,000 |
| 3/16/08 – 5/11/08 | 23 | 12,415,000 |
| Down | 9 | Down 5,848,000 |
| Down | 39% | 47% |
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