SBA backs more loans in Washington

Months of increased pressure from the federal government led to an increase in small business loans late last year, according to numbers released by the Small Business Administration Tuesday.

The federal agency’s district office in Seattle reported that lending in Washington and Northern Idaho spiked in the first quarter of the federal government’s 2010 fiscal year, which ended December 31.

Compared to that same time period in 2008, the total number of of SBA loans jumped 37 percent — from 332 to 445. That’s a monetary increase of 85 percent, from $79.1 million to $146.4 million.

SBA officials said Tuesday that the increase doesn’t say much about the nation’s lending environment, which still tends to be tough. But the increase isn’t specific to the Seattle region; some speculated that economic stimulus efforts have something to do with the spike in small-business lending.

“The Seattle (district’s) year-to-year data shows that SBA lending contracted 33 percent in fiscal year 2009 from 2008 levels,” an SBA statement read. “During that period, the number and value of loans dropped from 2,200 loans valued at $517.8 million to 1,477 loans valued at $398 million.”

“We think this is a good sign for the economy and hope that the trend continues in the coming months,” said Seattle-district Director Nancy Porzio. “We saw a slight increase in lending near the end of the fourth quarter of last fiscal year. The increased activity in this first quarter of FY2010 builds on that trend and certainly affirms that money remains available to qualified borrowers.”

The American Recovery &Reinvestment Act of 2009 marked the start of a federal effort to inject capital into small business. The act guarantees all loans up to 90 percent (an increase from 75-85 percent before the act) and eliminated guaranty fees.

Since then, the SBA nationally has backed more than $19 billion in lending to small businesses through its two largest loan programs and seen average weekly dollar volume increase by more than 75 percent, according to a statement.

The Seattle office approved more than $500 million since February of 2009. Dollar volume has increased more than 90 percent in the district since then.