SBA Loans Are Good For the Economy

The third quarter got off to a slightly slower start as $1,696,438,000 in SBA 7(a) loans were approved in the month of July.

Here are the SBA 7(a) loan approvals since the beginning of the calendar year.

July                      $1,696,438,000

June                      $1,832,552,000

May                       $1,782,874,000

April                     $1,591,774,000

March                   $1,590,460,000

February             $1,323,495,000

January               $1,193,005,000

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

$1,832,552,000 in SBA 7(a) loans were approved during the month of June.  

That makes it three straight quarters of steadily improving SBA 7(a) loan volume:

2^nd quarter 2014:            $5,203,700,000

1^st quarter 2014:              $4,106,960,000

4^th quarter 2013:             $3,989,696,000

3^rd quarter 2013:             $5,371,662,000

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

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

Second loan volume has jumped significantly from the prior quarter.

The correlation of SBA 7(a) loan approvals with our nation's economic performance appears to be quite 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.

SBA Loans Are Good for the Economy

SBA 7(a) loan approvals totaled $1,782,874,000 for the month of May.  This is a 12% increase over April's 7(a) loan approvals and a 49% increase over approvals for the month of January.

This makes it the fifth straight month of improving SBA 7(a) loan volume:

May                       $1,782,874,000

April                     $1,591,774,000

March                   $1,590,460,000

February             $1,323,495,000

January               $1,193,005,000

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86. 

SBA Loans Are Good For the Economy

SBA 7(a) loan approvals totaled $357,642,000 for the week ending May 2nd.  


Year to date SBA 7(a) loan approvals are at $9,827,563,000 about 1 1/2 percent over last year.


Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86. 

SBA Loans Are Good For the Economy

Things are starting to look up.  April’s SBA 7(a) loan approvals totaled $1,591,774,000 for the month ending April 30^th.  That beats March by $1,314,000.

This makes it the fourth straight month of improving SBA 7(a) loan volume:

April                     $1,591,774,000

March                   $1,590,460,000

February             $1,323,495,000

January               $1,193,005,000

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86. 

SBA Loans Are Good For the Economy

Gross domestic product, the broadest measure of goods and services produced across the economy, increased at just a 0.1% annual pace for the first quarter of 2014.

That’s down from 2.6% in the fourth quarter and is the weakest pace since late 2012.

What happened?

This slowdown in GDP should not have come as a surprise to anyone who remembers that SBA 7(a) loans provide a substantial, tangible economic benefit that trickles throughout the economy.

Here is what GDP has been doing and this week’s interesting little table of data:

1^st quarter 2014                0.1

4^th quarter 2013              2.6%

3^rd quarter 2013              4.1%

2nd quarter 2013             2.5%

1st quarter 2013              1.1

4th quarter 2012:             0.1%

3rd quarter 2012:             2.8%

2nd quarter 2012:          1.2%

1st quarter 2012:            3.7%

Contrast that with quarterly SBA 7(a) loan volume:

1^st quarter 2014                $4,106,960,000

4^th quarter 2013:             $3,989,696,000

3^rd quarter 2013:             $5,371,662,000

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

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

Notice the slump in 7(a) loan volume in the last quarter of 2013?  Thanks to the government shutdown back in October, SBA 7(a) loan approvals grinded to a halt and then it took some time to get back up and running.

The impact was manifested with the drop off in economic activity in the following quarter.

The correlation of SBA 7(a) loan approvals with our nation's economic performance appears to be quite 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.

SBA Loans Are Good for the Economy

SBA 7(a) loan approvals totaled $388,467,000 for the week ending April 25th.

This is the best week of the month.

Month to date SBA 7(a) loan approvals are at $1,373,265,000.  

With three days to end the month, it might be hard to beat March's SBA 7(a) approvals of $1,590,460,000.

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and the Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good for the Economy

The Bureau of Economic Analysis is scheduled to release the advance estimate for first quarter Gross Domestic Product (GDP)  on Wednesday, April 30th. 

Where will it be?

Here is what GDP has been doing and this week’s interesting little table of data:

4^th quarter 2013              3.2%

3^rd quarter 2013              4.1%

2nd quarter 2013             1.7%

1st quarter 2013              1.1

4th quarter 2012:             0.1%

3rd quarter 2012:             2.8%

2nd quarter 2012:          1.2%

1st quarter 2012:            3.7%

Contrast that with quarterly SBA 7(a) loan volume:

1^st quarter 2014                $4,106,960,000

4^th quarter 2013:             $3,989,696,000

3^rd quarter 2013:             $5,371,662,000

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 third quarter growth in GDP had jumped over the prior period?  Same thing happened with SBA 7(a) loan volume.

SBA 7(a) loan volume then fell off to end the year.  That might trickle into the first quarter's GDP.

The correlation of SBA 7(a) loan approvals with our nation's economic performance appears to be quite 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.

SBA Loans Are Good for the Economy

SBA lenders and borrowers must have taken off for Spring break as only $316,934,000 in SBA 7(a) loans were approved for the week ending April 18th.  


That's a drop from the prior week's SBA 7(a) loan approvals totaling $371,645,000.  
Month to date SBA 7(a) loan approvals are at $984,798,000.  

With a week and a half to go to end the month, it will be hard to beat March's SBA 7(a) approvals of $1,590,460,000.

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and the Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good for the Economy

SBA 7(a) loan approvals totaled $371,645,000 for the week ending April 11th.  

The correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.

SBA Loans Are Good for the Economy

SBA 7(a) loan approvals totaled $383,299,000 for the week ending April 4th.

While slightly off from last week's pace, it is still robust compared to earlier in the year.

The correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

SBA 7(a) loan approvals totaled $1,590,460,000 for the month of March.  

That’s up from February’s approvals of $1,323,495,000 which was an improvement from January's $1,193,005. 

Overall, that’s a nice pick-up over the fourth quarter of 2013:

1^st quarter 2014                $4,106,960,000

4^th quarter 2013:             $3,989,696,000

3^rd quarter 2013:             $5,371,662,000

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

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good for the Economy

SBA 7(a) loan volume is dramatically improving.

SBA 7(a) loan approvals for the week ending March 28th totaled $459,475,000.

The correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.

SBA Loans Are Good for the Economy

SBA 7(a) loan volume continues to improve as $381,129,000 in SBA 7(a) loans were approved for the week ending March 21st.  

This is better than last week which so far had been the best week of the new year.

The positive impacts of these new loans will ripple through the economy as the correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

SBA 7(a) loan volume picked up with loan approvals totaling $377,386,000 for the week ending March 14th.

So far this is the best week of the year!

Don't forget that the correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

The month of March began slowly for SBA lenders and borrowers as only $285,390,000 in SBA 7(a) loans were approved for the week ending March 7th.  

Total  SBA 7(a) loan approvals for the entire month of February were $1,323,495,000 compared to January's $1,193,005.   Forth quarter 2013 loan approvals totaled $3,989,696,000.

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

February ended with SBA 7(a) loan approvals totaling $392,982,000 for the last week of the month.  This is nice bump up from the $280,012,000 in SBA 7(a) loans for the week ending February 21th and the $302,053,000 in SBA 7(a) loan approvals for the prior week.

Total SBA 7(a) loan approvals for the entire month were $1,323,495,000 in February compared to January's $1,193,005.  

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

SBA lenders and borrowers took off for Washington's Birthday as only $280,012,000 in SBA 7(a) loans were approved for the week ending February 21th.  This comes after only $302,053,000 in SBA 7(a) loans were approved in the prior week.

If you think that the economy might be sputtering, you might be right.  SBA 7(a) loan approvals are at its slowest pace since the first quarter of 2012.

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

Only $302,053,000 in SBA 7(a) loans were approved for the week ending February 14, 2014.  This weak week comes after an exceptionally slow January for SBA 7(a) loan approvals.

If you think that the economy might be sputtering, you might be right.  SBA 7(a) loan approvals are at its slowest pace since the first quarter of 2012.

Keep in mind that the correlation coefficient between SBA 7(a) loan approvals and our economy's Gross Domestic Product is a statistically significant 0.86.

SBA Loans Are Good For the Economy

SBA 7(a) loan approvals jumped to $346,448,000 for the one week period ending February 7th, 2014.

This is so far the best week of 2014.

Don't forget that the correlation coefficient between SBA 7(a) loan volume and the economy's gross domestic product is a statistically significant 0.86.