The U.S. Small Business Administration approved fewer loans for Iowa companies in fiscal year 2012 than it did the previous fiscal year and a lower number of jobs were created or retained.
There were a total of 592 loan approvals for $252.1 million in fiscal year 2012, which created 2,778 jobs and retained an additional 6,581 jobs. That compares with 674 loan approvals for $360.9 million in small business lending in fiscal year 2011, which created 2,544 jobs and retained 7,030 jobs.
A total of 459 loans for $169.7 million were approved in fiscal year 2012 under the SBA’s largest loan program, the 7(a) general business loan program, and 133 loans for $82.3 million were approved under the 504 Certified Development Company program.
The 133 loans under the 504 Certified Development Company program supported a total of $185.2 million in small business lending in Iowa. The supported amount includes the SBA-backed portion and third-party loans made by commercial lenders as part of the funding package.
The SBA approved 68 loans to Linn County businesses for a total of $23.5 million in fiscal year 2012 In Johnson County, the agency approved 26 loans for a total of $8.7 million.
Polk County had the highest number of loan approvals with 124 for $58.5 million. Scott County businesses in the Quad Cities were approved for 45 loans totaling $24.5 million.
Nationally, SBA loan approvals in fiscal year 2012 reached the second highest dollar total ever for the agency’s combined small business loan programs, second only to fiscal year 2011 when incentives under the Small Business Jobs Act boosted loan volume to an all-time record.
The near-record pace was driven in part by a record year for the Certified Development Company (504) loan program, which supported $15.09 billion in small business credit. The strong performance of 504 loans was boosted by the temporary 504 refinancing program, which was responsible for 26 percent of the 504 program loans made in FY 2012 and 34 percent of the dollar volume.
Over the last fiscal year, the SBA began streamlining and simplifying many of the loan programs to provide more access and opportunity for lenders and small businesses. The agency encouraged lenders to use more of their own paperwork and the SBA’s updated processing systems, enabling more than 80 percent of loan applications to be processed online.