ATLANTA—U.S. Small Business Administration (SBA) guaranteed lending in Georgia increased significantly in the first quarter of fiscal year 2010, ending December 31, 2009, compared to the same quarter in FY 2009. The total number of SBA loans increased 83 percent from 224 to 410 while dollar volume of lending jumped by 139 percent, from $91.6 million to $218.7 million in first quarter 2010.
The American Recovery & Reinvestment Act of 2009 (ARRA) was signed by President Obama on February 17, 2009. It provided a range of assistance to small businesses, including an increase in the maximum SBA guarantee on 7(a) loans to 90 percent, up from 75-85 percent, and the elimination of loan related fees. The higher guarantee reduced risk exposure for lenders while the fee elimination provided small businesses with substantial savings.
Since the Act was signed, SBA nationally has supported more than $19 billion in lending to small businesses through its two largest loan programs and seen its average weekly dollar volume increase by 86 percent compared to the weeks before the Recovery Act. In Georgia, there has been $762 million in SBA-backed loans to small businesses with an average weekly dollar volume increase of 107 percent.
“Given where we were a year ago, this uptick in SBA-backed lending activity is definitely encouraging,” said Terri Denison, Georgia SBA District Director. “It is a hopeful sign that our economy is starting to turn in a positive direction.”
To further help small businesses, President Obama has called for extending the SBA loan fee waivers and higher loan guarantee provisions. Legislation to do so is currently pending before Congress. Currently, these provisions are in effect until late February 2010.
For more information about all of the SBA’s programs for small businesses in Georgia, call the SBA District Office at (404) 331-0100 or visit the SBA’s web site at www.sba.gov/ga.