SBA lending expected to be higher than previous years

9/9/2011

The U.S. Small Business Administration is recording record numbers of loans and lending amounts this year.

As the 2011 fiscal year draws to a close, the SBA is reaching the level of borrowing last seen before the onset of the recession, according to the Wall Street Journal. One large national bank has passed $1 billion in SBA lending.

The federal agency has increased its aid to small businesses dramatically in the past few years. Many smaller firms wouldn't be able to realize the commercial funding necessary to grow and stay stable without the backing of the organization and programs such as government contracting initiatives and minority and low-income support. In addition, the support of the SBA may help business owners with lackluster personal or business credit achieve better lending terms and take advantage of today's low interest rates.

Between 2009 and 2011, the number of loans backed by the SBA's 7(a) and 504 loans rose from 39,162 to 49,876 - with a few weeks to go in the current fiscal year. The amount of funds backed also increased greatly, which may be due to an expansion of programs and small business initiative partnerships with the White House.