SBA Loans Are Good for the Economy

Wow!

SBA 7(a) loan approvals totaled a whopping $411,606,000 for the week ending 6/28/2013.

2^nd quarter SBA loan volume is now up from the prior quarter, reversing an almost year long decline.

Here is a breakdown of SBA 7(a) quarterly loan volume for the last year:

2^nd quarter 2013              $4,273,683,000

1^st quarter 2013               $4,049,146,000

4^TH quarter 2012             $4,173,790,000

3^rd quarter 2012              $4,359,166,000

2^nd quarter 2012              $4,039,042,000

1^st quarter 2012                 $3,443,723,000

Notice how loan volume surged about 17% in the second quarter of 2012?  The third quarter also grew but only at about an 8% pace.  Since then loan volume had been slowly eroding until now.

This up-tick in loan volume bodes well for the economy.

Remember, SBA 7(a) loan volume is a leading economic indicator as the correlation coefficient between SBA 7(a) loan volume and GDP is a statistically significant 0.86.