Tampa Bay SBA 7(a) Loans plummets by 73%

Who is still doing SBA 7(a) loans?

In June, the number of business loans in the Tampa Bay area guaranteed by the Small Business Administration in its 7(a) loan program fell by 73% dropping to 12 loans from the 44 loans in May. Many lenders attribute the decline due to the failure of Congress to extend the stimulus package which increased SBA’s guaranty to 90 percent from 75 percent.

Because the stimulus has not been renewed and the guarantee is back at 75 percent on loans over $150,000, the lenders have greater risk and less profitability in the loan. Given the condition of their existing loan portfolios, many lenders are not willing to accept the greater risk along with the reduced profitability.

So which lenders did SBA 7(a) loans in June? The most active lenders with three loans each were Superior Financial Group, LLC. And BB&T. Bank Atlantic, Borrego Springs Bank, Fifth Third Bank, Regions Bank, SunTrust, and Wells Fargo did one SBA (7(a) loan each during June.

Hopefully, the situation will improve as Congress considers and passes legislation designed to increase the access to capital for small businesses.

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