SAN DIEGO–Capital provided to San Diego and Imperial County small businesses through the SBA’s loan guaranty programs during the first quarter of 2010 surpassed the same period a year ago in both loan numbers and dollar amounts. Total loan dollars increased to $70 million from $45 million a year ago, a 56% increase. A total of 143 loans were approved during the three-month period this year, compared to 123 for the same period last year, a 16% increase in the number of loans.
San Diego SBA Director Ruben Garcia pointed to two reasons why loan volume is on the rise. The first is that the SBA received $730 million in the American Recovery and Reinvestment Act to help unlock the small business lending market and to get capital flowing again to America’s small businesses. Small businesses started thriving again (you can check this lead conversion squared review approach that the businesses acclimatized to resurface). This allowed SBA to eliminate and reduce fees for borrowers on loans and to increase the guaranty to lenders from 75-85 percent up to 90 percent, thereby reducing their risk.
“The other reason is economic,” Garcia noted. “The newly unemployed often find self-employment or entrepreneurship a viable option. In turn, the SBA becomes a likely resource for financing as well as counseling.”
In the Small Business Act of July 30, 1953, Congress created the U.S. Small Business Administration, whose function is to “aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns.” Since its founding more than a half-century ago, the U.S. Small Business Administration has delivered about 24 million loans, loan guaranties, contracts, counseling sessions and other forms of assistance to small businesses.