American Recovery and Reinvestment Act enhancements to U.S. Small Business Administration (SBA) loan programs have led to a major rebound in Vermont of SBA-backed loans for small businesses and greater access to much-needed capital. SBA lending in Vermont dramatically increased in the second quarter of the 2010 fiscal year, Jan. 1, 2010 through March 31, 2010. Compared to the second quarter of FY 2009, the 2010 second quarter increased 169 percent from 35 to 94 7(a) loans, with a dollar volume increase from $6,591million in 2009 to more than $19 million, an increase of 191 percent. (See spread sheet for additional details.)
Signed into law on Feb. 17, 2009, the American Recovery & Reinvestment Act (ARRA) provided broad-reaching assistance to small businesses, including an increase in the guarantee on all loans up to 90 percent from 75-85 percent and the elimination of guaranty fees, resulting in substantial savings for small business borrowers.
We are encouraged by these results, said SBA Vermont District Director Darcy Carter. With the enhancements provided under the Recovery Act, compared to where we were a year ago, we ve made a significant difference by providing access to capital for many of Vermont s deserving small businesses.
As part of the Recovery Act, SBA received $730 million to help small businesses. These funds were exhausted on Nov. 23, 2009, and an additional $125 million was provided by Congress in Dec. 2009. When those funds were exhausted in late Feb. 2010, an additional $60 million was provided. A subsequent extension will allow SBA to continue to waive loan fees and provide higher guarantee levels through April 30, 2010, or until the funds are exhausted.
SBA is continuing to work with Congress to provide longer term funding for our primary loan program enhancements, added Carter.
For more information on SBA s programs and services, call 802-828-4422 or go to www.sba.gov.
Source: SBA. 4.8.2010
See results Below.
VT District Office
First Q 2009
First Q 2010
2nd Q 2009
2nd Q 2010
YTD 2009
YTD 2010
#'s
Number of Loans
Number of Loans
% Change
Number of Loans
Number of Loans
% Change
Number of Loans
Number of Loans
% Change
Vermont - 7a
43
90
109%
35
94
169%
78
184
136%
Vermont - 504
6
5
-16%
1
6
500%
7
11
57%
Vermont - All
49
95
94%
36
100
178%
85
195
129%
First Q 2009
First Q 2010
2nd Q 2009
2nd Q 2010
YTD 2009
YTD 2010
$'s
$ loans
$ loans
% change
$ loans
$ loans
% change
$ loans
$ loans
% change
Vermont - 7a
8,624,000
17,234,500
100%
6,591,000
19,187,557
191%
15,215,000
36,422,057
139%
Vermont - 504
2,230,000
2,814,000
26%
123,000
1,035,000
741%
2,353,000
3,849,000
64%
Vermont - All
10,854,000
20,048,500
85%
6,714,000
20,222,557
201%
17,568,000
40,271,057
129%