On Tuesday, the U.S .Small Business Administration (SBA) announced that its loan programs had reached its second-highest total ever for loan dollars in a fiscal year during FY 2012. SBA reported that its approvals supported $30.25 billion in 53,848 loans to small businesses as a part of its two major loan programs, 7(a) and 504. The total was only slightly lower than the FY 2011 total of $30.5 billion and much higher than the FY 2010 total of $22.6 billion.
According to SBA, a driver of the lending pace was the temporary 504 refinancing program, which accounted for 34 percent of the $15.09 billion in loan volume in the 504 program. The refinancing program was a temporary provision under the Small Business Jobs Act passed in 2010, and expired on September 27.
Although there is still a significant demand for small business lending, this news is an encouraging sign that franchise small business owners are getting the capital they need to expand and open new locations. SBA also reported that nearly 1,300 lenders returned to SBA lending, highlighting the increasing eagerness of banks to support small businesses as an engine of economic growth and recovery.
To read the SBA’s press release announcing the FY 2012 loan statistics, click here.