SBA Sees Higher Application, Approval Rates This Year
The South Florida Sun Sentinel reported that according to the US Small Business Association, the South Florida sector of Miami-Dade, Broward, and Palm Beach counties is seeing a boost in small business loans. The counties are leading statewide growth in the 7(a) small business loan. In the October 2014 to May 2015 period, 38% loan money went to Floridians than for the same period the year before. So far $854 million in loan funds has gone out, up from $620 million. In addition to representing a large boost in statewide growth, this number is nearly twice the US average growth rate for the loan. The Sun Sentinel noted that 7(a) loans require “lower down payments and less documentation, and can provide more years to repay than conventional loans.”
South Florida business owners and bankers are expressing optimism about the economy in 2015, with banking analyst Ken Thomas saying 2014 was “disappointing” for the state, with an average of $476 per small business granted by the SBA compared to $675 across the US. Still, this year “several banks,” including Wells Fargo, Chase, and Sun Trust “have hired more loan officers just to work with Florida’s small businesses to apply for SBA loans.” Chase business banking team head for Palm Beach and Broward counties, Teresa Boyd, said the bank’s SBA 7(a) loans are up almost 50% in 2015.
What This Means For Small Businesses
Small business owners across Miami and Florida as a whole should see growth in SBA applications and funds granted as signals that the area’s small business owners might be feeling more confident in the local economy. A surge in small business loans could indicate an uptick in business activity, which in turn may lure other businesses to the area and foster a more attractive business climate.
Additional Reading
NFIB previously noted growth in the Miami area’s tech sector this year.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
