Texas Border Business
Harlingen – The SBA’s Lower Rio Grande Valley District (LRGV) announced lending numbers show an increase in loan dollar value through the 7(a) and 504 loan programs but a slight decrease in total loan volume in fiscal year 2017, meaning less loans but more dollars approved.
In FY17, the LRGV district guaranteed 191 loans in the 7(a) and 504 loan programs. These programs combined provided more than $71 million (a 7.5 percent increase from FY16) to small businesses creating 633 jobs and retaining 984.
SBA’s flagship loan program, referred to as 7(a), provides small businesses with guaranteed loans covering the vast majority of small business needs including working capital, fixed and intangible asset financing, as well as refinance and export support through term and revolving loans.
“Specifically, the 7(a)-program supported more than $62 million combined across 183 loans,” Angela Burton, district director said. “Of those 183 loans, 149 were loans $350,000 or less, meaning 81 percent of the approvals are small loans made to emerging businesses.”
On the other hand, 504 loans provide small businesses with long-term fixed-rate financing to acquire fixed assets, and are available through Certified Development Companies (CDCs), SBA’s community-based partners. In FY17, the 504-program remained at zero subsidy, and grew to almost $9 million in loan value ($) in the Lower Rio Grande Valley District, a 15 percent increase from FY16.
What’s more, during FY17, SBA lending had a significant positive effect on businesses that have historically faced greater challenges in obtaining conventional loans. Namely, loan approvals in the LRGV District to Veteran owned business increased 86 percent from seven loans in FY16 to 13 loans in FY17.
Further review demonstrates the top three industries receiving guaranteed loans were: Accommodation and Food Services with 15 percent; Transportation and Warehousing with 15 percent; and Retail Trade at 14 percent of the total volume share, respectively.
Lastly, BBVA Compass recaptured the district’s top SBA lending title in 2017, making 74 loans valued at $4 million, followed by Wells Fargo. PeopleFund was third, while Lone Star National Bank and JP Morgan Chase Bank N.A tied for fourth highest volume lenders in the District.
“A special thank you to all of our lending partners, they worked really hard helping entrepreneurs gain access to capital to start or expand,” Burton said. “We truly look forward to another successful year not only for our capital access programs but also for our entrepreneurial education and government contracting activities.”
For more information about SBA’s loan programs, financial assistance and other services, visit the Lower Rio Grande Valley District Office at 2422 E. Tyler Ave., Suite E, Harlingen, Texas or call (956) 427-8533 or go to www.sba.gov.
Harlingen, Texas is home to SBA’s Lower Rio Grande Valley District Office (LRGVD), with a branch office in Corpus Christi, Texas. The district covers 14 of the 254 counties in the State of Texas and is comprised of a diverse landscape to include international ports of entry, beaches, deep sea ports, ranch land, and metropolitan cities.
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