The Small Business Administration’s Iowa District Office has announced the agency’s Fiscal Year 2023 loan approval statistics for its regular loan programs in Iowa.
The number of SBA guaranteed loan approvals made in the state for FY 23 was 340, compared to 466 loans approved in Iowa during FY 22. The dollar amount of the 340 loan approvals was for $139,353,400 in FY 23 versus $242,628,000 in FY 22. These loans were made through banks, credit unions and certified development companies.
The loan totals for Iowa were:
- 7(a) Loan Program: 296 loans approved for $99,140,400.
- 504 Loan Program: 44 loans approved for $40,213,000.
In the Corridor, these Iowa counties received loans:
- Linn County received 40 loans totally $15,665,100.
- Johnson County received 16 loans totally $3,809,700.
- Benton County received six loans totally $1,050,200.
- Cedar County received three loans totally $454,000.
As a result of the funding, 1,616 jobs were created and 1,890 jobs were retained. Of the 340 loans approved, 208 went to new business start-ups or to finance changes in ownership.
“Rising interest rates have had an impact on all types of commercial lending, including SBA,” said Jayne Armstrong, district Director of SBA’s Iowa District Office, in a statement. “For those seeking capital for their small business venture, the longer maturity rates offered by SBA loans can help mitigate those higher interest rates to some degree.”
Under the 7(a) program, the SBA guarantees that a portion of the small business loan will be repaid if the borrower defaults. An SBA guaranteed loan offers borrowers the potential for a lower equity injection and longer amortization with interest rates capped by the government.
The 504 loan program is a public-private partnership designed to provide fixed interest rate loans on large equipment and real estate projects for small businesses. Under this program, private lenders provide 50% of the project’s financing, with the SBA supplying up to 40% and the small business 10%.
