SBA approves fewer loans in Iowa

Fewer loans for less money were approved for Iowa businesses in fiscal year 2014 by the U.S. Small Business Administration.

A total of 440 loans for $149.6 million were approved by the SBA for Iowa small businesses in the fiscal year that ended on Sept. 30, down from 525 loans for $194.8 million in fiscal year 2013. The loans approved in fiscal year 2014 created 1,440 jobs and retained 2,796 positions.

The federal agency approved 51 loans for a total of $12.4 million in Linn County and 29 loans for $11.5 million in Johnson County. Polk County recorded the largest number of loan approvals in fiscal 2014 with 86 for a total of $36.9 million.

Nationally, the SBA 7(a) Loan Program reached another lending record in fiscal year 2014 with the approval of 52,044 loans for $19.19 billion, a 12 percent increase in the number of loans and 7.4 percent in dollar amount over fiscal year 2013.

The 7(a) loan program is designed to provide small businesses with the most comprehensive type of financial assistance to cover the vast majority of business expenses, such as short- and long-term working capital, exports, and refinancing existing debt under certain conditions.

The SBA had been authorized $17.5 billion in the fiscal year 2014 lending program. When it became clear that lending would exceed that amount, the agency secured an increase for the 7(a) program in the Continuing Resolution that was approved by Congress in mid-September.

SBA Administrator Maria Contreras-Sweet said small businesses are the essential fuel to the continued growth and recovery of the nation's economy.

'America's small businesses pack the biggest punch, creating two out of every three net new private sector jobs,” Contreras-Sweet said. 'These small businesses are the cornerstone of our communities, so their success and expansion is vital to the nation's economic growth.”