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As small businesses look to the SBA for guarantees on loans and other assistance in plowing through an intimidating economy, they want to know---what effect has the recession had on SBA's small business loan approval?
With the new fiscal year underway as of October 1st 2009, stats for the past fiscal year are in. And the grades are decidedly mixed for the Small Business Administration (SBA) when it comes to loan approval. While overall indicators showed a major drop in total number of SBA loan approvals, a closer look shows significant improvement throughout year leading into the new Q1.
In total, SBA loans in 2009 were down 56% from 2007 and 36% from 2008. According to the Wall Street Journal, fewer than 45,000 loans were approved in the past fiscal year. But before your businesses decides to liquidate assets and close shop, here's a bird's eye view of the numbers:
And a closer review shows the following results, which trend with major economic events of the past fiscal year:
Whether you believe small business is the backbone to the American economy or a vestige of the past, it is being infused with new life and new funds. What small business will do with these resources will remain to be seen, and in the meanwhile, we'll keep an eye on SBA progress reports as the new fiscal year kicks off.