Thursday, May 23, 2013

SBA loans are good for the economy

SBA loan activity is robust.

The SBA approved $299,139,000 in SBA 7(a) loans for the week ending May 17th.

This is a 20% increase over last year.

The correlation of SBA 7(a) loan approvals with our nation's economic performance is strong.

Just for fun I calculated the correlation coefficient between SBA 7(a) loan volume and GDP for over six years using the Microsoft CORREL function.  It came out to a statistically significant 0.86.

This should be taken as a positive leading economic indicator.
  

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