Los Angeles Small Business Lending - The nation's economic recovery might be slow going, but Southern California is experiencing at least one sign of progress: increased lending to small businesses. The Los Angeles office of the federal Small Business Administration announced Friday that SBA-backed loans in Los Angeles, Ventura and Santa Barbara counties rose 52 percent in the quarter ending Dec. 31. Even better, the dollar volume jumped 71 percent over the amount for the same quarter a year ago.
An SBA-backed loan is usually a loan from a major bank given to a small business owner -- often a member of a socially disadvantaged group -- with a guarantee from the SBA that a certain amount of the loan will be repaid, even in the worst-case scenario.
Between Oct. 1, 2009 and Dec. 31, 2009, the Los Angeles District Office financed a portfolio of 576 businesses in the amount of $285.4 million compared to 378 businesses with $166.9 million the same time last year -- putting much needed capital in the hands of small business owners.
"The Los Angeles District Office will continue to assist our small business entrepreneurs in receiving business capital through our loan programs, which is pivotal to our nation's competitiveness and economic revival," Alberto G. Alvarado, Los Angeles SBA district director, said in a statement.
"We also encourage small business owners to utilize our technical assistance centers to learn about potential government contracting opportunities and Recovery Act programs."
The top five SBA-backed lenders during the period between Oct. 1 and Dec. 31 were Wells Fargo Bank, Excel National Bank, Innovative Bank, Superior Financial Group and CDC Small Business Finance Corporation.
In addition, President Obama recently signed SBA's appropriations bill, which included $125 million to continue the enhancements of increased guarantees and reduced fees to SBA's two largest loan programs through Feb. 28. The SBA estimates the additional funding will support $4.5 billion in small business lending and ensure that small business owners have the tools they need to drive economic growth and create local jobs.