Historic Lending Year for Connecticut SBA
The U.S. Small Business Administration’s Connecticut District Office distributed over $368 million in loans to small businesses in the last year, the highest volume in more than five years.
“Loans guaranteed by SBA enabled our small businesses to expand and grow during this difficult economic time,” SBA district director Catherine Marx said.
“We sincerely thank our lending institutions for their continued partnership.”
The office helped facilitate more than 786 traditional loans in the 12-month period, which began in October 2020.
More than 600 businesses received a total of $294 million through 7(a) loans, according to the agency. That represents a significant increase from the previous fiscal year when the agency lended close to $165 million.
The 7(a) loan program helps lenders make small business loans with interest rates capped by the federal government.
Under the program, the SBA guarantees a portion of the business loan will be repaid if the borrower defaults.
The 504 loan program, a public-private partnership that offers fixed-rate financing for major assets that promote business growth and job creation, saw an even greater increase year to year.
The agency distributed $71 million in 504 loans in fiscal 2021, supporting 28 small businesses.
Micro loans supported 41 small businesses, with $1 million distributed. Businesses in underserved communities received 61% of those loans.
“In fiscal 2022, the SBA, along with multi-level stakeholders will increase efforts to expand access and promote lending programs to reach underserved communities and persons otherwise adversely affected by persistent poverty or inequality,” Marx said.
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