SBA Financing Numbers Misleading for Small Business

by Robert Wagner on January 30, 2010

Getting SBA Financing Could Depend on Your Loan Size

According to the Santa Ana SBA office, SBA lending had a sharp rise in the first quarter compared to 2009. This could be considered a good sign of things to come, however the small business community is being push out of the market in favor of larger loan amounts and more equity.  A close look at the numbers shows small business loans not being awarded.

Let’s Compare the Numbers From 2010, 2009, and 2008.

Fiscal Year Number of Loans Total Amount Average Amount Difference
OctoberFY2010 105 $46,008,600 $438,177 $185,296
OctoberFY2009 93 $41,867,400 $450,187 $197,306
OctoberFY2008 247 $62,461,700 $252,881 ————-

Small Business Getting Little Help from SBA Lenders

What the numbers show is the average loan amount has gone up and the amount of loans went down. Many small businesses seek smaller loans because their business is smaller. A Microloan is considered a smaller loan amount typically under $25,000. The above chart shows that 3 years ago banks where more willing to lend smaller loans.

Micro Business need Microloans

With many of the recently and long term unemployed workforce looking for ways to make an income, Microloans could be an answer to their situation. With home based business popping up every day, the SBA will need to step up the smaller loan amounts and get the capital into the hands SOHO’s and new and existing small businesses that are ready to grow.

How to get SBA Financing | Microloans Program

Many businesses could qualify for the SBA Micoloan Program. The Requirements of the Microloan can be relatively simple. You can find the information on How to get SBA Financing by visiting the home page.


{ 1 comment }

BCA March 15, 2010 at 4:29 pm

There are alternative sources of funding out there for all small business owners. With careful research you are able to find the best solution for your business. Thanks for the great info.

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