Financial Recap: $601M for Indiana Small Businesses in 2017

Financial Recap: $601M for Indiana Small Businesses in 2017

The U.S. Small Business Administration has announced fiscal year 2017 lending numbers showing increasing loan levels in small business lending through the 7(a) and 504 loan programs, as well as increases in lending to women, veterans and emerging communities.

In Indiana, the SBA approved more than 1,539 loans in the 7(a) and 504 programs in FY17, providing more than $601 million to small businesses throughout the state. Both the number of loans and total dollar amount showed increases over 2016 figures, reflecting the strong partnerships SBA enjoys with lenders across the state, to the benefit of small business owners.

Nationwide, SBA approved over 68,000 loans in the 7(a) and 504 loan programs in FY17.  These programs provided over $30 billion to small businesses.

7(a) Loan Program

SBA’s flagship loan program, referred to as 7(a), provides small businesses with guaranteed loans 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. In FY17, the 7(a) program nationwide supported a consistent number of loans — more than $25.44 billion combined across 62,430 loans.  The SBA continues to streamline and improve access to its loan program for small loans and emerging communities, delivering more than $5 billion in smaller loans of $350,000 or less in FY17.

In Indiana, more than 1,300 7(a) loans worth nearly $497 million were approved. The top lender by volume was The Huntington National Bank, which approved 299 loans worth almost $71 million.

504 Loan Program

504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets, and are available through Certified Development Companies (CDCs), SBA’s community-based partners.  In FY17, the 504 program remained at zero subsidy, and grew to $5 billion in loan volume.

In Indiana, 168 loans worth $105.5 million were approved in FY17. Premier Capital Corporation was the top performing CDC in the state, approving 57 loans worth $40.2 million, with Indiana Statewide CDC coming in a close second, approving 35 loans worth almost $27.5 million dollars.

During the fiscal year, SBA launched its online lender referral tool Lender Match.  Lender Match is an upgrade to LINC (Leveraging Information and Networks to access Capital). This tool helps connect small business borrowers with participating SBA lenders. Lender Match is available to all SBA 7(a) lenders nationwide, including nonprofit lenders that offer free financial advice and specialize in micro lending, loans in SBA’s Community Advantage program, and the SBA’s CDC/504 loan program.  Lenders previously signed up for LINC will continue receiving referrals on the Lender Match platform.

During FY17, the SBA approved 27,263 disaster loans for a total of $1.7 billion. That total includes 24,121 home disaster loans for a total of $1.3 billion, and 3,142 business disaster loans for a total of $296 million.  The SBA processed 84,705 home loan applications and 10,882 business disaster loan applications—a total of 95,587 disaster loan applications processed.