SBA loan volume up 65 percent in Iowa
The U.S. Small Business Administration (SBA) has approved 185 loans for $59.1 million in Iowa since President Barack Obama signed the American Recovery and Reinvestment Act, which led to changes in the SBA’s lending programs. The loan amount represents a 65 percent increase in average weekly loan volume.
With $730 million in stimulus funding, the national SBA has started to change its lending programs since March 17, including temporarily dropping borrower fees and increasing the SBA guarantee to 90 percent. It also has expanded microloans, surety bonds and refinancing through its 504 Certified Development Company loan program.
SBA Des Moines District Office Director Joe Folsom said approximately 48 percent of total loan activity in the fiscal year that started Oct. 1 has occurred in the past 100 days. The SBA has guaranteed 379 loans totaling $104.9 million in Iowa since the start of its fiscal year.
Folsom expects activity to increase even more when the SBA’s America’s Recovery Capital loan program becomes operational on June 15. The program will provide an immediate infusion of capital to small businesses to assist with making payments of principal and interest of up to $35,000 on existing debt. For more information on the program, go to www.sba.gov/recovery.