plura Financial Blog

blog for plurafinancial.com, an online matchmaker between banks & small businesses

SBA Statistics for 7A and 504 Loans, through 3/23/2012

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-James Timberview/www.plurafinancial.com

The SBA recently posted its latest results for small business loans. With the SBA’s FYE being September 30, we are nearly halfway through its fiscal year.  Here are some interesting takeaways from the SBA’s loan approval results through YTD 3/23/2012:

  • As of 3/23/2012, total SBA approved loan volume was down 35%, or $4.8 billion, YOY
    • The drop in approved Preferred Lender Program (PLP) loans was responsible for 39% of the total YOY decline.
    • The drop in loans to rural-based businesses was responsible for 20% of the total YOY decline in SBA loans.
    • The decrease of approved loans to Asian Americans was responsible for 13% of the total volume decline YOY.
  • SBA 7A loans are down 45% YOY
    • 7A loans to existing businesses had the largest decline, shrinking 47% YOY.  This is likely attributed to 7A loan fees being reinstated in FY 2011; hence, borrowers (and lenders) were rushing to get 7A loans done prior to the fees going up.
  • SBA 504 loans were up 15% YOY, slightly offsetting the 7A volume decline
    • The uptick in 504 volume was likely due to folks rushing to take advantage of the ability to use SBA 504 loans to refinance debt, a favorable attribute that is set to expire in September 2012.
  • The mix of SBA loans approved for startups versus existing businesses has remained relatively flat at 23% and 77% of total volume, respectively.
  • Wells Fargo approved the largest volume of SBA loans thus far in 2012, and an average loan size of ~$350k.
  • Chase approved the largest # of SBA loans, with an average loan size of ~$125k.
To apply for an SBA loan online, or to learn more about the SBA, visit pluraFinancial or the SBA.
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Written by entrabanker

March 28, 2012 at 4:47 am

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