Small businesses continued turning to the U.S. Small Business
Administration for commercial credit in record numbers through the first
three quarters of FY 2005, reflecting their confidence in the U.S. economy
and the stability of the SBAloan program that backs their loans.
Small businesses secured SBA backing under the agency's flagship 7(a)
program for 71,131 loans through the first nine months of the fiscal year,
a 21 percent increase over the same period a year ago and a 49 percent
increase over the same period two years ago.
The loans made so far this year amount to $11.1 billion, 19.5 percent
more than in the same period last year, and on a clear pace for a
record-setting year for the program.
"We had a record year for this loan program a year ago, and we're going
to set another record in 2005," said SBA Administrator Hector V. Barreto.
"It tells us that the critics are wrong, that small businesses are
confident enough to invest in the future of the American economy, and that
this program is here to help them do it.
It also demonstrates the
effectiveness of the self-funded footing on which the President has placed
the loan program, and the confidence that lenders have in its stability. I
am very pleased with this performance so far this year."
The gains are also reflected in the SBA's Certified Development
Company, or 504, loan program. Through the first nine months of the fiscal
year, the 504 program had issued 6,434 loans worth $3.44 billion, more
than 6 percent ahead of the same period a year ago, when the program had
produced 6,058 loans for $2.88 billion.
The budget for the current year makes more than $21 billion available
to small businesses through the two loan programs, including $16 billion
in small business lending under the 7(a) program and $5 billion under the
504 program.
For information on applying for an SBA loan, visit the SBA's extensive
Web site
