SBA Loan Fundings Top $10 Billion Since Oct 1st
SBA Loans (primarily 7a and 504 loans) funded after the signing of the “Small Business Jobs Act” recently surpassed the $10 billion mark.
That’s Billion with a “B.”
According to the SBA, 19,103 SBA 7a loans totaling $8,681,598,112 were funded between Oct 1st and Dec 28th with approximately $283 million still pending.
And 2,323 SBA 504 loans totaling $1,331,668,000 were funded with roughly $7.5 million still pending.
That’s A LOT of small business lending.
Keep in mind that 504 fundings are just for the 2nd mortgage piece guaranteed by the SBA which typically equates to only 30 to 40% of the financing and that means the total 504 volume was more than double the reported number…AND the 504 numbers were more than likely new construction or expansion money and did not include much refinance volume because current 504 refinance guidelines do not allow for a refinance without an expansion…AND the new SBA 504 refinance rules will be out soon…which should lead to a surge in 504 refinance volume given the changes to the program which allow larger businesses to qualify, larger loans to be done and more property types (like self storage), etc.
Additionally, all of this activity has occurred without the use of the Small Business Lending Fund yet to be rolled out by the Treasury which will allow more lenders to make SBA guaranteed loans.
Combine all of this with the fact that many more lenders have discovered the benefits of SBA lending and we should expect that 2011 will be a very good year for Small and Mid-Sized Businesses in need of financing.