SAN DIEGO – (Business Wire) Capital provided to San Diego and Imperial County small businesses through the SBA’s loan guaranty programs during the first quarter of 2010 surpassed the same period a year ago in both loan numbers and dollar amounts. Total loan dollars increased to $70 million from $45 million a year ago, a 56% increase. A total of 143 loans were approved during the three-month period this year, compared to 123 for the same period last year, a 16% increase in the number of loans.
San Diego SBA Director Ruben Garcia pointed to two reasons why loan volume is on the rise. The first is that the SBA received $730 million in the American Recovery and Reinvestment Act to help unlock the small business lending market and to get capital flowing again to America’s small businesses. This allowed SBA to eliminate and reduce fees for borrowers on loans and to increase the guaranty to lenders from 75-85 percent up to 90 percent, thereby reducing their risk.
“The other reason is economic,” Garcia noted. “The newly unemployed often find self-employment or entrepreneurship a viable option. In turn, the SBA becomes a likely resource for financing as well as counseling.”
For a list of the Top 25 lenders participating in the SBA loan guaranty programs within the San Diego district, contact Cynthia Harris at 619-727-4884 or firstname.lastname@example.org.
To serve budding entrepreneurs as well as existing small business owners, SBA’s San Diego district office also offers technical assistance through the Southern California Small Business Development Center Network and SCORE (Counselors to America’s Small Businesses). For more information on available sources of counseling and training go to http://www.sba.gov/localresources/district/ca/sandiego/counselingt/index.html.
In the Small Business Act of July 30, 1953, Congress created the U.S. Small Business Administration, whose function is to “aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns.” Since its founding more than a half-century ago, the U.S. Small Business Administration has delivered about 24 million loans, loan guaranties, contracts, counseling sessions and other forms of assistance to small businesses.
To learn more about the SBA call 619-727-4884 or visit the web at www.sba.gov/ca/sandiego. The SBA extends its programs to the public on a nondiscriminatory basis.