The Small Business Administration (SBA) issued $19.19 billion in 7(a) loans in fiscal year 2014, which ended on September 30, setting a new single-year record. The 7(a) program is the most commonly used by U.S. small and medium-sized businesses. The SBA approved 52,044 during the fiscal year, 12 percent more than in 2013.
"As our economy continues to grow and recover, small businesses are the essential fuel to that continued growth," said SBA administrator Maria Contreras-Sweet. "Thanks to the hard work and outreach by our lending partners, SBA staff and our resource partners, as well as the small business owners themselves, we have been able to put more capital into the hands of our nation's entrepreneurs. We know that America's small businesses pack the biggest punch, creating two out of every three net new private sector jobs in the U.S."
The SBA was originally authorized to issue $17.5 billion. As this blog reported in September, Congress authorized additional funding when it became clear that the initial allocation would not be enough to handle the demand. The Administration saw a 23 percent increase in loans under $150,000 thanks to comprehensive relief measures that reduced fees to zero. That fee elimination extends to loans up to $350,000 under the Veteran Advantage initiative.
Commercial loan software can help lending institutions determine ideal installments and terms when considering a small business loan. This tool allows lenders to set amortization schedules, ensuring automated, on-time payments and reducing the risk of default.