The  Minnesota office of the U.S. Small Business Administration (SBA) said SBA-backed loans to Minnesota small businesses through participating banks and other lenders  declined in fiscal 2018 ended in September.

The SBA guaranteed 1,774 loans, including real estate mortgages, valued at $609 million, compared with 2056 loans valued at $681.2 million in fiscal 2017.

The Minnesota SBA office indicated that lenders relied less on the SBA guarantee program, which requires more due diligence, as more small-business customers qualified for conventional financing as their businesses prospered in a good economy in 2017-18.

Nancy Libersky, the Minnesota SBA district director, noted that SBA lending often declines somewhat during a change in the presidential administrations as borrowers and lenders assess a new political landscape.Morever, she cited improved small business fortunes over the last year.

“We have talked to many lenders and with the economy being strong these businesses are doing well and qualifying for conventional bank loans or they just don’t need financing right now,” Libersky said. “Also, our ‘microloans’ have increased to very small ethnic borrowers at lower dollar amounts through [nonprofit business advisors] such as WomenVenture, Neighborhood Development Center and African Development Center. “

The top lenders in Minnesota by number of loans were:

LENDERS

 LOANS

Wells Fargo Bank

130

U.S. Bank

130

Minnesota Business Finance Corp*

92

Sunrise Banks

61

Twin Cities-Metro Certified Development

59

BankVista

59

KleinBank

56

21st Century Bank

54

Choice Financial Group

48

SPEDCO

45

Nationally, the SBA in fiscal 2018 said it guaranteed $30 billion-plus through more than 72,000 approved loans “to small businesses that otherwise would not have had access to capital.”


 

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