SBA’s Loans in L.A. Area Hit Record $667 Million

Reflecting continued growth in Southern California’s small business sector, the Small Business Administration extended a record $667 million in business loans to Los Angeles-area companies in fiscal 1997.

Preliminary figures for the 12 months ended Sept. 30 show that the SBA’s district office in Los Angeles increased its lending more than 32% over the $504 million loaned in fiscal 1996--a year when the SBA and other government agencies were forced into a temporary shutdown thanks to a budget squabble between the president and Congress.

That impasse, along with a vibrant economy and continued demand for small-business credit in fiscal 1997, made for the strong year-over-year increase in loan approvals, according to Alberto Alvarado, the SBA’s Los Angeles district director. The Los Angeles office is the SBA’s leading loan generator, responsible for assisting small businesses in Los Angeles, Ventura and Santa Barbara counties.

The Santa Ana district office, which serves Orange, Riverside and San Bernardino counties, also posted sizzling growth. That office made business loan commitments of $440 million in fiscal 1997, up more than 31% over the previous year.

Nationwide, SBA loan approvals reached a record $10.9 billion, up nearly 7% from the year before. About $9.5 billion of those loans came through the SBA’s popular 7(a) program, which served 45,288 borrowers last year. Under that program, a private sector bank makes the actual business loan, with the SBA guaranteeing 70% to 90% of the credit up to a maximum of $750,000.