The U.S. Small Business Administration’s Delaware District Office reported another record-breaking fiscal year when it came to loan volume.
SBA Delaware District Director John Fleming announced the infusion of capital helped to create or retain more than 1,400 jobs in the state.
During the 2013 fiscal year, SBA backed more than $57.8 million in Delaware loans, guaranteeing 130 loans in total. It was the year in a row that loan volume set a record and represents a 73% increase in the last two years.
“We are extremely fortunate to have a strong small business community in Delaware that is responding to more favorable economic conditions by expanding their businesses and hiring new employees,” Fleming said. “We are equally fortunate to have a great cadre of SBA participating banks and credit unions that make the loans to meet the capital needs of the Delaware small business community.”
M&T Bank reported 33 7(a) loans – which businesses can use for many purposes to start or expand – followed closely by First National Bank of Wyoming with 32 loans. Fiscal 2013 was First National Bank of Wyoming’s first full year as a certified SBA lender. and its impact was felt. As a result, Kent County posted a 38% increase in the number of loans.
Parke Bank led the way in dollar volume, approving $7.4 million in four 7(a) loans. Other banks making more than $4 million in 7(a) loans were Capital Source Bank, Noah Bank, and First National Bank of Wyoming.
Forty-eight loans went to women-owned businesses, 30 to minority-owned businesses, and 13 loans went to veteran-owned businesses. First State Community Loan Fund completed seven of the new Community Advantage loans specifically designed for underserved markets; more than any institution in SBA’s Region Three.
The record pace was aided by Certified Development Company (504) loan program which provides approved small businesses with long-term, fixed-rate financing to acquire durable assets, typically land and buildings, for expansion or modernization. The performance of 504 loans was driven by M&T Bank with four loans totaling $4.4 million and Crown Bank making one loan for $7.6 million. Delaware Community Development Corporation was the top Certified development Corporation with five 504 loans for $4.9 million. DelVal Business financial Services accounted for one loan for $5.5 million.
“It’s likely that many of these loans would not have been possible without SBA’s guarantee. With it, new businesses started and existing businesses expanded,” Fleming said. “SBA is proud to help support Delaware’s economic recovery. We look forward to working closely with our lenders to set even more records in the years to come. Recently, the SBA waived all fees for loans under $150,000 and we expect this policy to drive an additional increase in the number of smaller loans made across the state. “
For information on the SBA’s programs and services contact us at 302-573-6294,
