Nationally, SBA backed more than 63,000 small business loans totaling $28+ billion in FY 19
DETROIT – The U.S. Small Business Administration’s Michigan District helped the state’s small businesses access $787 million in capital via its various loan programs in fiscal year 2019, which ended on September 30, 2019. Across the nation, the federal agency backed more than $28 billion in loans to entrepreneurs who, without the SBA, would otherwise be unable to access loans at reasonable rates.
“Even with a strong economy in which banks have more comfort with conventional lending, small businesses can still struggle to access to the funds they need to start, grow and expand,” SBA Great Lakes Regional Administrator Rob Scott said. “All businesses start small and our work in this region is essential for empowering local job creators and supporting them in their contributions to economic development and innovation.”
Here in Michigan, the SBA backed approximately 2,350 loans. Of note was a rise in the SBA 504 loan amount, which totaled approximately $4.5 million. These loans help small businesses get long-term, fixed-interest capital to acquire fixed assets such as real estate, additional machinery, equipment and construction efforts. This type of financing assists small businesses with maximizing cash flow as they grow and promotes economic development. Michigan’s positive 4% SBA 504 loan amount growth trend mirrored the national SBA 504 loan trend of 4% growth over FY 18 and reached a total of almost $5 billion.
“One of our top goals here in Michigan, and an SBA core priority, is to get more capital into the hands of entrepreneurs to assist with their growth and expansion,” said SBA’s Michigan District Director Constance Logan.
Michigan also followed SBA’s national trend of a rise in the microloan amount. The state’s SBA microloans totaled more than $2.3 million, approximately a $660,000 increase from FY 18. Nationally, SBA’s Microloan amounts achieved a record total level, helping approximately 5,500 small businesses, typically start-up and under-represented entrepreneurs, access over $81.5 million. This program offers loans to not-for-profit lending intermediaries that, in turn, make up to $50,000 loans to small businesses on reasonable terms. The average microloan is approximately $14,800 and can be essential for providing newly forming businesses with solid capital footing.
In addition to its beneficial loan programs, SBA’s Lender Match platform has helped connect entrepreneurs with SBA-approved lenders within 48 hours via a quick online form without registration or cost to the user. To date, Lender Match has generated 4.4 million small business leads to our lenders, and lenders have contacted more than 230,000 unique borrowers with financing options.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.