The Minnesota District Office recently announced the U.S. Small Business Administration approved 1,948 loan guarantees worth $713 million during federal fiscal year 2011 ending Sept. 30.
Last fiscal year they approved 2,352 loan guarantees worth $513 million.
The office is ranked sixth in the nation for the number of 504 Certified Development Company loans approved with 274 loans worth $156 million.
SBA 504 loans provide long-term fixed-rate financing to small businesses for the acquisition of land and buildings; and for construction, modernizing, renovating or restoring existing facilities and sites. Financing is provided jointly by the federal government and the private sector.
Also included in the total loan approvals were 1,674 loans worth $557 million made through SBA’s 7(a) Lender Guaranty Program. Under this program, loan funds are provided by banks or other private lenders and are guaranteed by SBA. Loan proceeds can be used to finance real estate, equipment, working capital and inventory.
The Minnesota District SBA Office serves all of Minnesota and is ranked sixth in total loan approvals out of 68 SBA offices across the country. More than 231 different Minnesota lenders used the SBA guaranty loan program this year. SBA has guaranty loans with almost all banks in Minnesota.
The 12 most active financial institutions using the SBA programs in Minnesota (based on the number of loans made) are: U.S. Bank National Association, Wells Fargo Bank National Association, Bremer Bank National Association, Minnesota Business Finance Corporation, Anchor Bank National Association, Twin Cities-Metro Certified Development, Associated Bank National Association, Venture Bank, Park Midway Bank National Association, and SPEDCO.
In Minnesota, seven SBA Micro Loan intermediaries approved 88 loans for $1.6 million during fiscal year 2011. SBA’s Micro Loan Program provides funds to qualified nonprofit organizations that serve as intermediary lenders.
The financial assistance section of SBA’s national website has information on all SBA loan programs. For more information go to www.sba.gov. For Minnesota-specific information, go to www.sba.gov/mn.
