JACKSON, Miss. – The U.S. Small Business Administration
Mississippi District Office continues to turn out big loan approval numbers in fiscal year 2010. “We started this fiscal year rolling out loans in the same manner we ended fiscal year 2009,” said Janita R. Stewart, SBA Mississippi district director. “The volume of loans approved, both in number of loans as well as dollar volume of loans, are quite impressive.”
In the three months ended December 31st, participating lenders made 298 SBA-guaranteed loans in Mississippi totaling almost $56.88 million. Compared to the first quarter of fiscal 2009, this represents a 161 percent increase in the number of loans – the largest percentage increase in Region IV which includes Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, and Tennessee – and a 133 percent increase in loan dollars.
These loans were made in two programs, 7(a) and 504. The 7(a) program is SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. The 504 program is designed to help entrepreneurs obtain long-term, fixed-rate financing to acquire major assets like real estate or equipment.
Two provisions of the American Recovery and Reinvestment Act-higher guarantees and waived borrower fees-contributed greatly to the increased activity during the 1st quarter. These provisions have been extended through the end of February. “This trend affirms that money remains available to qualified borrowers and may prove a positive sign in helping boost Mississippi’s economy,” said Stewart.
For more information about SBA’s programs for small businesses, call the SBA District Office in Jackson at (601) 965-4378, SBA Gulfport Branch Office at (228) 863-4449 or visit the Mississippi SBA web site at www.sba.gov/ms.
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