Connecticut small businesses received $314 million in federal borrowing assistance in the fiscal year that ended Sept. 30 – an 8% increase over the previous fiscal year.
According to the U.S. Small Business Administration, 776 loans were approved consisting of 661 guaranteed loans; 64 “504” loans, designed to provide below-market rate financing for the purchase of fixed assets like real estate and machinery; and 51 microloans, in which the SBA loans money to intermediary nonprofit lenders who then provide business loans of up to $50,000 to startups and small businesses.
According to SBA District Director Anne Hunt, the increased lending indicates positive activity within the financial industry, that banks are taking on more loans and that small businesses are finding it easier to approach lenders. Additionally, she noted, SBA’s resource partners offer counseling and educational programs to get entrepreneurs “bank-ready.”
“The increase in SBA lending is a result of the hard work performed by the Connecticut SBA staff and the efforts of our lenders and resource partners across the state,” Hunt said. “Many local banks have expanded their small business lending initiatives, which is great for the Connecticut economy.”
The top five SBA Guaranteed lenders in Connecticut for the year were Webster Bank, People’s United Bank, TD Bank, Liberty Bank, and Manufacturers & Traders Trust Co.
New England Certified Development Corp. ranked number one in SBA’s 504 loan program and Community Economic Development Fund was the top microlender.