News Release
Seattle District Office
Release Date: Nov. 16, 2016 / Contact: Lisa White – (206) 553- 7050Melanie Norton – (206) 553-5231
Website:
Follow us on Twitter, FacebookBlogs
SBA Sets New Small Business Lending Records
During FY 2016, 7(a) loan program reaches more than $24.12 billion nationally, $726.5 million in SBA Seattle District; 504 loan total grows for third consecutive year; minority lending reaches $8.65 billion
SEATTLE – The U.S. Small Business Administration (SBA) announced Fiscal Year 2016 (FY 2016) lending numbers this week showing record levels of small business lending through the 7(a) and 504 loan programs, as well as significant increases in lending to women, veterans and underserved communities.
“Access to capital is critical to a small business’ success. The SBA Loan Guarantee Program helps small businesses in our community keep their shelves stocked, keep their employees paid and keep their doors open,” SBA Regional Administrator Calvin Goings said. “Through resources like SBA LINC and local ‘meet the lenders’ events, the SBA connects local business owners with financing partners in their area.”
The following outlines national loan numbers and trends along with local lending highlights for the SBA Seattle District, which serves most of the state of Washington as well as northern Idaho.
Nationally, the SBA approved more than 70,000 loans in the 7(a) and 504 loan programs during FY 2016. These programs provided nearly $28.9 billion to small businesses and supported nearly 694,000 jobs.
Locally in the SBA Seattle District, the SBA approved a total of 1,870 loans in the 7(a) and 504 loan programs during FY 2016 totaling $844.5 million.
SBA 7(a) Loan Program
The SBA’sflagship loan program, referred to as 7(a), provides small businesses with comprehensive financial assistance 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.
During FY 2016, the 7(a) program supported a record number of loans nationally - more than $24.12 billion combined across 64,073 loans. Both the total number and dollar amount of 7(a) loans increased by 1 percent and 2.6 percent respectively from the previous year.
In the SBA Seattle District, the 7(a) program also supported record number of loans- more than $726.5 million combined across 1,741 loans. The average loan size was $417,316.
Across the country, the SBA continues to streamline and improve access to its loan program for small loans and underserved markets delivering more than 44,000 small loans of $350,000 or less during FY 2016. In the SBA Seattle District, the number of small loans was 1,255.
SBA 504 Loan Program
504 loans provide small businesses with long-term fixed rate financing to acquire fixed assets for expansion or modernization.504 loans are available through Certified Development Companies (CDCs), who are SBA community-based partners.
During FY 2016, the 504 program grew nearly 7 percent to $4.74 billion – the third consecutive year of growth – and a 2 percent growth in loan volume.
In the SBA Seattle District, the 504 programgrew by 14 percent from the previous fiscal year to provide $118 million in loans and support a total of $265.4 million in fixed asset financing.
Reauthorization of the 504 Debt Refinancing Program in May was instrumental in the success of the 504 Program during FY 2016.
Local Industry Trends
During FY 2016, the following were the top 10 industries to receive SBA loans in the SBA Seattle District by loan volume and loan numbers. Industries are categorized using North American Industry Classifcation System (NAICS) codes:
Top 10 Industries by Loan Volume
- Hotels (excludingcasino hotels) and motels - $47.7 million
- Gasoline stations with convenience stores - $25.2 million
- Full-service restaurants - $24.6 million
- Dentists offices - $15.1 million
- Limited-service restaurants - $13.5 million
- Lessors of nonresidential buildings (excludingmini-warehouses) - $8.9 million
- Child daycare services - $8.9 million
- Assisted living facilities for the elderly - $8.6 million
- Fitness and recreational sports centers - $8.1 million
- All other specialty trade contractors - $7.9 million
Top 10 Industries by Loan Numbers
- Full-service restaurants - 77
- Limited-service restaurants - 46
- Dentists offices - 31
- Hotels (except casino hotels) and motels - 23
- Gasoline stations with convenience stores - 21
- Chiropractors offices - 21
- All other specialty trade contractors - 18
- Physical, Occupational and Speech Therapists - 17
- General automotive repair - 15
- Breweries - 15
Other Areas of Record-Setting Lending
SBA lending had a significant positive effect on various underserved groups during FY 2016. Minority business owners received a record combined $8.65 billion in 7(a) and 504 approved lending. This record reflects the priority of the Administration and the SBA in helping communities that historically find it difficult to access capital.
Women-Owned Businesses
For the fifth consecutive year, 7(a) lending to women-owned businesses – both majority- and minority-owned – increased in total dollar and volume. FY 2016 lending was nearly $7.3 billion, an increase of $253 million from FY 2015.
In the SBA Seattle District, 7(a) lending to women-owned businesses was $120 million via 320 loans.
504 loans are up for the third year in a row. During FY 2016, 504 lending exceeded $646.6 million with lending to women-owned businesses increasing by 5.9 percent or $36.3 million over the previous year.
In the SBA Seattle District, 504 lending to women-owned businesses was $16.8 million via 22 loans, an increase of 51 percent in dollars from last year.
Community Advantage
Community Advantage Loans provide up to an 85 percent guarantee on loans up to $250,000 and offers technical assistance to improve the rate of success among participants. This initiative grew by nearly 19 percent from the previous year in both dollar amounts and percent growth in loans approved, continuing a pattern of dramatic growth in this high-impact program:
Fiscal Year / Approved Loans / Approved Dollars2016 / 987 / $ 123,025,000
2015 / 828 / $ 103,516,100
2014 / 453 / $ 56,473,500
2013 / 273 / $ 38,199,800
2012 / 188 / $ 25,240,900
2011 / 15 / $ 2,142,800
Microloans
The SBA Microlending program has proven highly effective in helping very small businesses get off the ground. This program reached record levels again this year with 14 percent growth in dollar amount from $53 million to $60.57 million, and a more than 18 percent increase in loan approvals.
Fiscal Year / Approved Loans / Approved Dollars2011 / 4,051 / $ 47,580,764
2012 / 4,291 / $46,866,362
2013 / 5,339 / $55,413,889
2014 / 4,039 / $ 57,701,354
2015 / 3,757 / $52,998,066
2016 / 4,458 / $60,569,469
Small Business Investment Company (SBIC)
To fuel high-growth small businesses and start-ups and drive innovation, SBA issued more than $2.5 billion in debenture leverage supporting more than $5.5 billion in financing to more than 1,100 small businesses. These funds helped to sustain nearly 112,000 jobs.
Veterans
The total number of SBA loans to veterans is up more than 4 percentfrom the previous year; and, for the second year in a row, 7(a) and 504 lending to this group surpassed $1.36 billion.
In the SBA Seattle District, 106 loans totaling $34.3 million went to veterans.
Exporting
The SBA export loan program helps American small businesses reach customers in the global market and compete on an equal footing in countries around the world. During FY 2016, the SBA had another record year guaranteeing more than 1,800 small business export loans, which supported more than $1.5 billion in financing to small business exporters.
In the SBA Seattle District, 56 export loans totaling $41.2 million went to local small businesses, up 44 percent in numbers and 33 percent in dollars from last year.
Disaster Assistance
During FY 2016, the SBA Office of Disaster Assistance responded to 289 declared disasters across the country, including processing more than 59,150 home and 8,531 business applications and approving 25,235 loans for more than $1.4 billion.
For more information about SBA loan programs, financial assistance and other services, visit
About the SBA Seattle District Office:
The SBA Seattle District serves the state of Washington (with the exception of the four southwest counties) and northern Idaho with locations in Seattle and Spokane. SBA Seattle District staff provide resources and services in three areas referred to as “the three C’s” – counseling, capital and contracting. Visit for more information including resource partners, lenders, workshops, success stories and other resources to help business start, grow and succeed.
-30-