DETROIT – Changes under the American Recovery and Reinvestment Act to U.S. Small Business Administration loan programs has led to a rebound in SBA-backed loans for small businesses and greater access to much needed capital. The SBA Michigan District Office statistics for October show a significant increase in both dollar amounts and the number of loans compared to a year ago.
In October this year, SBA guaranteed 148 7(a) loans for $39,613,000 in Michigan compared to 69 loans for $12,398,550 in October last year when the credit crunch was in full force. Most impressively, the total dollars guaranteed this October is the highest dollar amount ever in the month of October in Michigan.
“The Recovery Act has been critical to this increase in our guaranty loans and as a result we’ve helped put much needed capital in the hands of small business owners during this tough economic time,” said Michigan District Director Richard Temkin. “Many lenders have found that the SBA Loan Guaranty is a tool they can use to serve their small business customers. As a result, our loan activity has exceeded the previous year on a month-to month basis since July.”
In addition to the increased loan numbers this October, 43 lenders participated in the 7(a) loan guaranty program compared to 29 in October 2008. Last fiscal year, 111 lenders participated.
“While the lending climate has improved over the last eight months, there are still many credit-worthy small businesses that cannot get financing,” said Temkin. “There is more that can be done and we encourage every lender to work with the SBA to provide the capital that Michigan?s small businesses need.”
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