3Q SBA Loans Up 38 Percent

The Arkansas office of the U.S. Small Business Administration has seen a 38 percent increase in the number of loans it has processed from its third quarter 2004 to it’s third quarter in 2005.

There were 142 7(a) loans worth $28.1 million and 17 total 504 loans worth $9.6 million made in the SBA’s third quarter, which ended June 30. That is a 42 percent and a 13 percent increase respectively from the same period in 2004.

The 504 loans are long-term fixed-rate financing mechanisms for major fixed assets such as land and buildings, and 7(a) loans are provided by third-party lenders with an SBA guaranty on portions of the loan.

Bill Horne, chief of lender relations and loan programs for the SBA in Little Rock, said all indications are that 2005 will be a banner year for SBA loans. He said the Arkansas Certified Development Corp. of Little Rock, which is the single largest third party lender in the state, has indicated to him the year will set records.

The office used to track and report loans county-by-county, but budgetary constraints ended that practice earlier this year.

Nationwide, the SBA has made 71,131 7(a) loans worth about $11.1 billion from Oct. 1 to June 30, a 19.5 percent increase over the same period last year, a press release said.

The SBA’s 504 program issued 6,434 loans worth $3.44 billion so far in fiscal 2005.