Higher loan guarantees, lower fees sparked boom in SBA lending in Milwaukee and around country
The U.S. Small Business Administration approved more than $10.3 billion in loan guarantees across the country between the day that President Obama signed the Small Business Jobs Act on Sept. 27 and Dec. 31, 2010. The $10.3 billion in loan guarantees supported more than $12 billion in lending, the SBA said.
The Small Business Jobs Act included an extension of reduced fees and higher loan guarantee amounts in two of the SBA’s most popular programs.
“In just three months since the Small Business Jobs Act was signed into law, SBA supported more than $12 billion in lending to small businesses and entrepreneurs across the country,” said Karen Mills, administrator of the SBA. “
During the week of Dec. 18 to Dec. 24, the SBA guaranteed a record high of $1.95 billion in small business loans, the agency said. It was the highest amount since the SBA began tracking weekly loan volumes.
The Small Business Jobs Act extended higher loan guarantees and reduced fees that were implemented when the American Recovery and Reinvestment Act was passed in February of 2009. The SBA approved more than $22.5 billion in loan guarantees between Feb. 17, 2009 and Sept. 30, 2010.
“The end result is that the agency (the SBA) helped put more than $42 billion in the hands of small businesses through the Recovery Act and Jobs Act combined,” Mills said. “As we transition back to our standard guarantees and fee rates, SBA loan programs will continue to play an important role, as they have for decades, in helping entrepreneurs and small businesses start or grow their businesses and create jobs.”
The nationwide boost in SBA lending was reflected in higher loan amounts in southeastern Wisconsin in recent months.
In October, there were 107 SBA guaranteed loans in metro Milwaukee that totaled almost $48.5 million. There were 65 SBA guaranteed loans in the metro area in October of 2009, and they totaled about $17.2 million.
In November, there were 90 loans guaranteed by the SBA, which totaled $44.6 million. There were 85 loans in November, 2009, totaling $21.5 million. SBA loan totals for December in the Milwaukee area are not yet available.
