Recovery Act Helps Boost Small Business Lending in Montana

SBA’s Montana District Office http://www.sba.gov/mt saw a 79 percent increase in loan activity since the American Recovery and Reinvestment Act was signed on February 17th. The approved 370 7(a) and 504 loans worth $60.9 million since the Recovery Act was signed into law. A total of 64 America’s Recovery Capital Loans (ARC) worth $2.3 million was also approved. For the full fiscal year 2009, which ended September 30th, the Montana District Office approved a total of 479 7(a) and 504 loans valued at $78 million. This compares to 362 loans worth $82.3 million in the previous year.

Breakout of total loans approved during FY 2009

· Of the 479 total loans approved during FY 2009, 465 loans totaling $69 million were made through the agency’s 7(a) Guaranty Loan Program which provides short or long term financing for small business start-up or expansion needs.

· Fourteen loans totaling $9.1 million were made through the 504 Certified Development Company program which provides long term fixed rate financing for land, buildings and equipment.

· 190 loans totaling $29 million were made to women owned businesses

· 55 loans worth $5 million were made to veterans

· 33 loans totaling $6.9 million were made to minority business owners.

The American Recovery and Reinvestment Act provided the SBA with $730 million to temporarily eliminate most borrower loan fees and raised the SBA guarantee to 90 percent on most loan programs. The Recovery Act also provided for two new loan programs – the America’s Recovery Capital (ARC) Stabilization Loan and the Dealer Floor Plan (DFP) Pilot Program (a type of financing for inventory for most auto dealers). In fact, the second Dealer Floor Plan loan in the nation was made to Mission Valley Auto in Polson, MT.

“The Recovery Act has had a real impact in Montana. Since the beginning of March, the average weekly loan volume in Montana has risen from just over $1.0 million a week to nearly $1.9 million per week. This loan volume is compared to what we saw in January and February when loan volume was at its lowest point statewide.” stated Michelle Johnston, Montana district director. “The SBA continues to take a prominent role in supporting Montana’s small business community as small firms struggle to recovery from these uncertain economic times. The SBA remains vigilant and will continue to support the small businesses across Big Sky Country.”

For more information on the Recovery Act, SBA loan programs and FY09 loan stats please visit http://www.sba.gov/mt or call the Montana District Office at 406.441.1081.