BIRMINGHAM, Ala. – SBA lending to small businesses in Alabama was up by 83 percent in the first quarter of fiscal year 2010, which ended December 31, 2009, compared to the same period in fiscal year 2009. The number of loans increased from 103 in first quarter fiscal year 2009 to 188 in first quarter fiscal year 2010 and the dollar volume of lending doubled, from $29,528,366 to $59,054,800.
“We are encouraged by the increase in loan activity, and by other positive recovery indicators as well,” said Tom Todt, Director for the Alabama District of SBA. “It’s like seeing green shoots in an area ravaged by a wildfire. You know that the systems are in place and are still working, and that it’s just a matter of time,” added Mr. Todt.
The American Recovery & Reinvestment Act of 2009 authorized SBA to increase its guarantee on loans to 90 percent from 75-85 percent and to eliminate guaranty fees, resulting in substantial savings for small business customers.
Last month, Congress extended the Recovery Act fee waiver and loan guarantee increase through February 28, 2010. Fee elimination means decreased cost to the small business borrower and the 90% guarantee provides more reductions in risk to the lenders.
For more information on all of SBA programs and services, please visit the website at www.sba.gov or contact the Alabama District Office at 205-290-7101.
