October 2019
Commercial Lending
SBA Small Business Lending Reflects Strong Economic Trends

The Small Business Administration (SBA) recently announced FY 19 lending numbers showing that it guaranteed over $28 billion to entrepreneurs that otherwise would not have access to capital to start, grow or expand their small businesses.

The SBA 504 Loan Program had another year of increased performanceThe SBA 504 Loan Program had another year of increased performance with a 4.3% growth in lending over last year, resulting in 6,099 authorized loans totaling $4,958,552,000.  That growth is attributed to the addition of the 25-year debenture, which was launched last year and offers an extra 60 months of financing, as well as ongoing historically low fixed interest rates.

Florida First Capital, which finished FY 19 ranked 3rd nationally among all active Certified Development Companies, experienced significant growth over last year with a 28.5% increase in the number of authorized loans and a 21.6% increase in dollar amounts.  Those increases were also the highest in both units and dollars among the top 5 Certified Development Companies.

The 504 Loan Program provides expanding and modernizing small businesses with up to 90% financing at below-market fixed interest rates and long amortization terms specifically for the purchase of major fixed assets, such as land and owner-occupied commercial buildings, including green projects, and/or heavy duty machinery and equipment.  The program also allows for business debt refinancing both with and without expansion requirements.  504 loans are available through Certified Development Companies (CDCs) like Florida First Capital.

In contrast, the SBA’s 7(a) Loan Program for FY 19 saw an 8.7% decline in lending over last year, resulting in 51,907 authorized loans totaling $23,175,811,000 – its lowest production level in 5 years.

The 7(a) Loan Program provides small businesses with broad financial assistance covering the vast majority of small business needs, including working capital, fixed and intangible asset financing, as well as refinance and export support through term and revolving loans.  7(a) loans are available through commercial lending institutions.

Additionally, in FY19, there was significant growth of dollars lent in the SBA’s Microloan program, with more than 5,500 loans approved for nearly $81.5 million.

For more information about SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at info@FloridaFirst.com.  Phone: 850.681.3601 or toll-free at 800.504.LOAN.