1 Can you talk about SBA lending volume in Rhode Island last fiscal year?
In terms of fiscal 2016 loan volume, we ended the year with 457 total loans for over $130 million. This is the highest total dollar volume injected into Rhode Island small businesses via SBA loans since 2011.
2 Did anything surprise you?
We are always hopeful in pursuit of furthering small business. … In fiscal ’16, Citizens Bank had the largest percentage increase with 50 approved SBA advantage loans, known as “7a loans,” while only approving 26 in the prior fiscal year. Overall, lenders continued to excel, such as Coastway Community Bank, which had a 9.3 percent increase in the number of loans and a 52 percent increase in dollars. Sustaining is critical, but increasing loans reassures that lending institutions are dedicated to the community.
3 What do you expect for this fiscal year?
While we are optimistic that the SBA loan programs will continue to flourish, it is incredibly difficult to put an exact number on lending. Our goal through fiscal 2017 is to expand awareness of the SBA programs and increase lenders’ participation.
4 What does a higher volume of SBA-backed loans tell you about the overall economic health of local businesses?
We look at the type of business loans that are provided, along with amounts. If a loan is “working capital,” then this leads to higher employment and gives that business more flexibility. Fixed-asset increases can tell us that the overall production of business will increase. … In fiscal 2016, the Rhode Island SBA district recorded 376 loans to existing business totaling over $90 million and 74 loans to new business totaling $41 million. This tells us the environment for entering the market is very positive and that existing businesses are seeing a strong consumer turnout, which is allowing them to expand.
5 Does the state’s recent effort to make more money available for small businesses complement what the SBA is trying to accomplish?
Yes, the governor’s program that provided $5 million to intermediaries will directly help small businesses. These dollars have been provided to SBA-approved lenders who have matched the dollar amount. •
