Friday, October 18, 2013

SBA Loans Are Good For the Economy

SBA 7(a) loan volume exploded at the end of the government’s fiscal year as borrowers and lenders rushed in to obtain loan guarantees prior to the government shutdown.

For the one month period ending September 30th, 7(a) loan volume was $2,419,791,000.  That accounted for almost HALF of the total volume of SBA 7(a) loan approvals for the entire quarter.

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

3rd quarter 2013:             $5,371,662,000
2nd quarter 2013              $4,273,683,000
1st quarter 2013               $4,049,146,000
4TH quarter 2012             $4,173,790,000
3rd quarter 2012              $4,359,166,000
2nd quarter 2012              $4,039,042,000
1st quarter 2012                 $3,443,723,000

 Assuming all these loans actually fund, 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.

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