First quarter SBA loans up from ’09

PROVIDENCE – The U.S. Small Business Administration has seen a 75 percent jump in the number of Rhode Island business loans it has guaranteed in the first three months of the year compared with the same period in 2009.
SBA officials said it backed 133 loans between Jan. 1 and March 31 that totaled $31.7 million, up from 76 loans valued at $10.5 million a year earlier.
“We are encouraged by these results,” said Mark S. Hayward, director of the SBA Rhode Island District Office. “The [American Recovery and Reinvestment Act of 2009] enhancements continue to make a significant difference everyday for Rhode Island small businesses. SBA is working with Congress to continue longer term funding, including higher loan guarantees and waived fees on SBA key loan programs.”
Loans made under the SBA 7(a) program totaled 118, with a dollar volume of $24.3 million, an increase of 389 percent. The remaining 15 loans were made under the 504 program with a dollar volume was $7.4 million. That is compared with nine loans totaling $4.2 million in the first quarter of last year.
The 7(a) loans are mostly used to help startups and existing small businesses struggling to find financing through normal channels. The SBA 504 program provides long-term, fixed-rate financing for capital assets such as the purchase of commercial real estate and equipment with a minimum useful life of 10 years.
For additional information about the U.S. Small Business Administration and its programs, call the SBA’s Rhode Island district office at (401) 528-4561 or visit www.sba.gov.