Arizona small-business loans down
Lower demand for loans by small businesses and tighter credit standards have resulted in fewer loans made to small businesses across the state, according to Arizona data released by the U.S. Small Business Administration for fiscal 2008.
The number of loans made declined by 27 percent, while the total value of the loans dropped by 32 percent compared with fiscal 2007, SBA officials said.
A total of 2,022 loans valued at $880 million were made during fiscal 2008, which ended Sept. 30. In fiscal 2007, 2,960 loans were made totaling $1.197 billion.
SBA officials said demand for loans among small-business borrowers has dropped as many are postponing new debt, awaiting better economic times and recovery of the value of their collateral — typically, primary residences.
Arizona’s numbers reflect national market conditions.
The total dollars loaned under SBA’s 7(a) program, designed to assist small businesses with startup and working-capital needs, dropped 8.7 percent, to $432 million. Total funds loaned under SBA’s 504 program, designed to help businesses purchase major assets such as equipment or real estate, fell 38 percent, to $448 million.
Still, the average 7(a) loan size in Arizona was $246,000 — 35 percent more than the national average of $182,000, executives said.
Related posts:
- SBA loan activity increases in 2010
- Treasury Report Shows Drop In Small-Business Loans
- Obama Seeks More Small Business Loans for Low-Income Communities
- Renewed emphasis on SBA loans
- Rate of household and business loan defaults slows
Tags: Loans