Another $217,653,000 in SBA 7(a) loans were approved last week. This is big drop from the prior week when about $568,000,000 had been approved. I have no idea why loan volume spiked but it could very well be a reporting issue with SBA.
With about six months still left in the fiscal year, $12,723,487,000 in SBA loans have been approved out of a total of $17,500,000,000 available. If SBA loan volume sticks around $200,000,000 a week the program won't run out of money. Anything greater than that means funding could dry up in the summer.
To put this into perspective, only $3,855,352,000 had been approved for the first six months of 2009, while $8,162,168,000 had been approved for the first six months of 2010. The $12,732,487,000 in approvals for the last six months was driven primary by the Jobs Act enhancements of the increased guarantee percentage and waiver of the guarantee fee, but since expiration of those enhancements, loan demand still is robust.
Borrowers and lenders alike continue to turn to the SBA 7(a) program.