November 20, 2018

SBA’s Maine office’s lending activity declines 23% in 2018

Courtesy / Maine District Office of SBA
Courtesy / Maine District Office of SBA
Amy Bassett, district director of the U.S. Small Business Administration's Maine office, said the SBA guaranteed over $83 million in loans to small businesses in Maine that otherwise would not have had access to capital during fiscal year 2018.

The U.S. Small Business Administration guaranteed over $83 million in loans to small businesses in Maine that otherwise would not have had access to capital during fiscal year 2018. That figure represents a 23% decline from 2017's reported loan guarantees in Maine.

The fiscal year 2018 lending activity is $25 million less than the $108 million guaranteed by the SBA's Maine District Office in 2017 — a year in which SBA's total lending activity in the state was up by more than 16% over fiscal year 2016.

The SBA's Maine District Office reported 289 loans were made during FY 2108 in the SBA's flagship 7(a) program, with a total amount of nearly $50 million. The program offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions and are commonly used for acquiring land, purchasing equipment or working capital.

The SBA's 504 loan program had another year of high performance for lending, with 59 loans made totalling more than $32 million. In fiscal year 2018 SBA launched the 25-year debenture, which offers an extra 60 months of financing at a fixed rate for small businesses. Since its introduction in April, over 1,000 debentures had been sold by the end of September.

There was significant growth in the SBA's smaller loans, including a record volume of dollars lent in the microloan and community advantage programs: 92 loans were approved for over $1.4 million in the microloan program. This represents more than double the number of loans in the previous year, and a 75% increase in dollars lent through the microloan program.

"The success of SBA loan programs here in Maine is thanks to the strong commitment of lenders who utilize SBA programs to assist entrepreneurs with obtaining greater access to vital capital," SBA Maine District Director Amy Bassett said in a news release. "As we continue to see improved conditions for small business here in Maine, and innovations made in our lending programs, we hope to build on the achievements of the past year."

Leading lenders to be recognized

SBA will be honoring leading lenders at a ceremony to be held at the Governor Hill Mansion in Augusta on Dec. 4:

  • TD Bank approved 88 loans for $5.5 million making them the leading Maine SBA 7(a) lender
  • Bangor Savings Bank was named the Leading SBA 504 Third Party Lender for participating in 14 projects and providing $7.8 million in financing
  • Granite State Development Corp. was Maine's leading Certified Development Company (CDC) approving 44 loans in the 504 program for nearly $25 million
  • Infinity Federal Credit Union approved 11 loans for $910,000 making them the Leading Credit Union Lender
  • Community Concepts Financing Corp. was Maine's Leading SBA Microlender originating 43 microloans for $841,000
  • MaineStream Finance will be presented with the District Director's Award for their innovative lending that assistance 13 micro-borrowers obtain over $62,000 in financing.

Maine SBA's STAR Award will be presented to an individual lender who has gone above and beyond this year in its efforts to assist a SBA loan borrower.


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