SBA Loans in Arkansas at $214M, Up 5 Percent

Edward Haddock

The U.S. Small Business Administration said Monday that it approved more than $214 million in loans to Arkansas small businesses for fiscal year 2018, up 5 percent from the previous year.

In all, the SBA made 262 small business loans in Arkansas during the fiscal year, which ran from Oct. 1, 2017, to Sept. 30, 2018. The SBA said 63 commercial lenders, credit unions and certified development companies were involved in funding the loans.

“Small businesses are a critical component to economic growth in Arkansas,” SBA District Director Edward Haddock said in a news release. “For many applicants obtaining funding through traditional commercial lending processes is difficult due to issues such as inadequate collateral, insufficient business history, being a start-up, and length of term for repayment.”

The loans came through the 7(a) Loan, SBA’s largest financing program, and the 504 Loan Program. Haddock said 53 percent of the loans were made for startups and existing businesses in rural areas, and 65 percent of the loans were for $350,000 or less.

Another 34 small businesses received a total of $817,400 loans through the SBA’s Microloan Program, which provides small business loans of $50,000 or less. The average microloan was $24,000.