Only $317,142,000 in SBA 7(a) loans were approved for the week ending August 9th. That brings the year to date total to $14,312,107,000.
While that is a 13% increase compared to last year, the pace of SBA 7(a) loan approvals has been moderate. The six week rolling average of SBA 7(a) loan approvals is now only $302,581,000.
That implies that loan approvals for the third quarter might be less than the approvals for the second quarter.
The modest pace of SBA 7(a) loan approvals ripples throughout 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.