Colorado borrowers took out a record number of U.S. Small Business Administration-guaranteed loans during the past 12 months, the SBA reported Thursday.
Colorado lenders made 2,255 SBA guaranteed loans in the fiscal year ended Sept. 30, a 20 percent increase over the 1,872 loans approved in fiscal 2004.
Loan volume totaled $520 million, a 7 percent increase over last fiscal year’s volume of $485.7 million.
“We are seeing more business startups than we have seen in the past five years,” said local SBA spokesman Christopher Chavez. “Lenders definitely continue to rely on our SBA programs.”
Chavez attributed the higher loan volumes to several trends:
Ten new lenders joined the SBA loan program last year, primarily in smaller communities, boosting the network of SBA lenders active in the state to more than 120.
The SBA held more than 300 marketing and outreach events to better inform the business community about its programs.
Economic activity has picked up enough in Colorado to create demand for capital, but it isn’t so strong that lenders feel confident enough to skip the loan guarantees that the SBA provides.
Capital shortfalls that capped SBA lending in past years weren’t a factor in fiscal 2004. SBA loan programs are now self-financed rather than dependent on federal appropriations.
The fastest growth came in the SBA’s 7(a) Loan Guaranty Program, which provides loans for general business purposes as opposed to real estate.
Of the total, 1,919 loans worth $372 million were made through the 7(a) program.
Wells Fargo, the state’s largest bank, remained the top SBA lender in Colorado, with 341 loans worth $55.4 million approved.
“We have got a team of about 200 business banking professionals dedicated to small-business lending,” said Steve Sexson, a vice president with the bank.
Following Wells Fargo were U.S. Bank, with 268 loans worth $34.6 million; and Capitol One, better known for its credit cards, with 202 loans worth $8.9 million.
Chavez said an expedited, electronic application for the 7(a) loans has proved popular among big lenders, boosting the number of loans they are making with the SBA.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
