SBA comes through for Connecticut entrepreneurs

1/24/2012

Connecticut is seeing substantial gains in loans backed by the U.S. Small Business Administration during the first three months of the 2012 fiscal year, Westfair Online reports.

Specifically, the SBA's Connecticut office has backed 137 loans worth $44.4 million during the 2012 first quarter, which began on October 1. The state is on track to easily surpass the roughly 200 loans approved by the SBA during the 2011 fiscal year.

"It looks as though we are ahead of schedule," Bernard M. Sweeney, district director of the Connecticut SBA office, told the news source.

The surge is likely the result of an increase in the allowed maximum loan amount from $2 million to $5, as well as a simplification of the CAPLines program and smaller banks' budget flexibility.

Sweeney also noted that despite rising consumer confidence, banks are still lending conservatively and demand has remained steady for SBA-backed loans.

"The banks are still looking for the enhancement on their loan and of course the SBA guarantee provides the greatest such enhancement," he told the media outlet.

According to the Norwich Bulletin, Connecticut got "disproportionately clobbered" in the real estate crisis as well, and the SBA will likely be an "important player" in assisting in a market rebound.