NEWS ALERT: An SBA Loan Program By Any Other Name…

U.S. SBA Renames Core 7(a) and 504 Loan Programs

The U.S. Small Business Administration is rebranding its flagship 7(a) and 504 loan programs to “better reflect their purposes and improve borrower understanding of SBA’s programs.” Effective immediately, the 7(a) and 504 loan programs will be referred to by the names outlined below:

  • 7(a) Loan Program has been changed to the SBA Advantage Loan Program
  • 504 Loan Program has been changed to the SBA Grow Loan Program

Neither loan program is expected to undergo any “substantive changes” according to the SBA. All policies, procedures and forms are still in effect, including the May 2015 SOP 50 10 5(H), which outlines the agency’s minimum requirements for environmental investigations.

SBA Finishes FY16 at Record High

For many lenders—and the environmental consultants who serve them—lending under SBA-guaranteed programs has been a bright spot during the past few years of market recovery. Many community banks, in particular, would not lend on commercial real estate without the government backing that the SBA 7(a) or CDC programs provide.

The latest numbers tell the story: the SBA closed out FY16 at record-high lending levels under the 7(a) program—the fourth consecutive year of growth. Since 2012, 7(a) lending has increased by a significant 44 percent in terms of number of loans, and 59 percent in terms of loan value (see accompanying graphs). Year on year, however, growth is a more modest 1 and 2 percent in number of loans and value, respectively.

SBAloan graph SBAvolume graph

Wells, Live Oak and U.S. Bank Dominate SBA Lending

The most active SBA 7(a) lenders in the U.S. by lending volume in FY 2016 are shown in the table below, led by Wells Fargo, Live Oak and U.S. Bank. In terms of the number of loans, Wells Fargo is the leader by a long shot, originating 8,737 SBA loans in FY16, followed by Huntington with 3,905 and JPMorgan Chase with 3,330.

TopLenders

FOR MORE INFORMATION

The latest SBA environmental guidance, SBA SOP 50 10 5(H).

For the full list of the 100 most active SBA 7(a) lenders in the US by lending volume in FY 2016.

EDR Insight’s tip sheet to help lenders (and their environmental professionals) avoid having their environmental reports screened out, delaying the loan approval process.