The Iowa district office of the Small Business Administration (SBA) has released the loan approval statistics for its regular loan programs in Iowa for the fiscal year 2024.
During the 2024 fiscal year, the program saw the approval of 476 loans, a significant increase from the 340 loans approved in Iowa in the previous fiscal year of 2023. In a significant development, the program has approved loans totaling $195,929,000 for Iowa in the 2024 fiscal year. This marks an increase from the $139,353,400 allocated in the previous fiscal year of 2023. Loans were issued by banks, credit unions, and certified development companies.
A total of 421 loans were issued under the 7(a) program, amounting to $146,022,000, while 55 loans were provided under the 504 program, totaling $49,907,000.
A recent report reveals that Johnson County saw the approval of 24 loans totaling $10,924,400. In contrast, Linn County had 40 loans approved, amounting to $20,383,300. Additionally, Jones County recorded the approval of two loans for $1,137,000, while Washington County had three loans approved, totaling $194,300.
In fiscal year 2024, Iowa saw the creation of 1,927 jobs and the retention of an additional 2,510 jobs, attributed directly to SBA-guaranteed small business loans. In fiscal year 2024, Iowa approved a total of 476 loans, with 203 of those allocated to new business start-ups or financing changes in ownership, as classified by the SBA.
The Small Business Administration (SBA), a federal agency, plays a crucial role in assisting lenders in Iowa and nationwide with small business loans through the 7(a) program. The agency ensures that a specific percentage of the loan amount will be repaid in the event of borrower default. An SBA-guaranteed loan provides borrowers with the opportunity for a reduced equity injection and extended amortization periods, while the government imposes caps on interest rates.
The SBA’s 504 loan program operates as a public-private partnership aimed at offering favorable, fixed interest rate loans for small businesses seeking to finance significant equipment and real estate projects. In this program, private lenders contribute 50% of the project’s financing, while the SBA offers up to 40%, and the small business is responsible for 10%. The 504 program involves collaboration between the SBA and a Certified Development Company (CDC), which is a private, nonprofit entity, aimed at facilitating financing for small businesses.
The SBA has unveiled its fiscal year 2024 capital impact report, revealing a 7% increase in its annual capital portfolio compared to fiscal year 2023. This portfolio encompasses startup, growth, and recovery capital, along with surety bonds, highlighting the agency’s ongoing commitment to financial support across the nation.
In a notable development, the SBA has reported surpassing 100,000 financings to small businesses for the first time since 2008. This marks a significant 22% increase compared to fiscal year 2023 and a remarkable 50% rise from 2020.
For comprehensive information regarding the SBA’s loan programs, individuals are encouraged to visit the SBA Office of Capital Access.
