SBA Nebraska Loan Dollars Up For First Quarter of Fiscal Year 2010

Posted on | January 12, 2010 | No Comments

News Release: U.S. Small Business Administration      Contact: Michael Foutch (402) 221-7211

(OMAHA) – In the wake of a slowly recovering national economy and tight business credit, small businesses in Nebraska can still find funding when it comes to government-backed loans through lending institutions. 

The Nebraska District Office of the U.S. Small Business Administration (SBA) experienced a significant increase in its guaranteed loan dollar activity through the first quarter of its 2010 fiscal year.  As of December 31, 2009, loan dollar amounts in Nebraska shot up 97 percent over the same time last year to slightly more than $47 million for SBA-backed loans.  The overall number of loans in the state saw a 41 percent increase; in Congressional District I alone, the number of loans increased 177 percent during SBA’s first quarter. The average dollar amount per loan in Nebraska rose nearly 40 percent. By comparison, nationwide, average dollar amount per SBA-backed loan increased 13 percent.

Seventy percent of SBA loans in Nebraska during the first quarter went to existing small businesses.

More importantly, as a direct result of SBA guaranteed small business financing throughout the state, 496 jobs are being created in the state for the first quarter.

“Nebraska small businesses continue to see opportunity and to invest for the future.  The size of the loans and consistent volume indicate the overall strength of the state’s economy, and that small businesses that need financing are getting it,” said Leon Milobar, District Director of SBA’s Nebraska District Office.

In economic downturns, SBA guaranteed loans typically become more attractive because the SBA provides lenders with some cushion for their risks.  Lenders can provide SBA guaranteed loans for all business needs but typically turn to SBA for new businesses or businesses with less than adequate collateral, lower credit scores and smaller equity injections typically required for conventional loans. 

For more information about SBA’s loan programs and services, please call 402-221-4691 or visit our website at www.sba.gov/ne

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