Michigan sets SBA lending precedent in nation

11/1/2011

The state of Michigan led the nation in Small Business Administration lending during fiscal year 2011, Business Review West Michigan reports.

SBA 7(a) loans grew by 36.3 percent statewide during the last fiscal year, and the dollar value increased by 79 percent, to $689.4 million. Furthermore, its federal 504 program - aimed at allowing businesses to make capital investments - grew by 15 percent.

"Using SBA extends the spectrum of loans you can say 'yes' to," Craig Street, director of SBA lending for Columbus, Ohio-based Huntington Bank, told the news source. "It's really success begets success."

According to the Detroit Free Press, the increase in SBA loans could be attributed to greater awareness of its programs as well as increased marketing efforts from the SBA's Michigan district office.

BRWM notes that Huntington Bank was Michigan's top SBA lender this year, writing 612 loans 7(a) loans for $128.7 million. This is a marked increased over the 262 loans it wrote for $52.7 million in 2010.

The news source notes that Huntington's performance is in large part due to the corporate initiative it launched in January 2010 to lend $4 billion to small businesses over the next three years.