Minnesota SBA gave out fewer loans last year

Date: October 31, 2018

The Minnesota SBA reportedly had a decline in the number of loans given out last year.

By the end of fiscal year 2018, the Minnesota Small Business Administration gave out 282 fewer loans than it had last year, according to the StarTibune.

The SBA gave out 1,774 a loan in FY 18 totaling $609 million, but it gave out 2056 loans in the previous year totaling $681.2 million.

Nancy Libersky, the Minnesota SBA district director, cited the changed presidential administration as part of the reason for the decline. The SBA also note that the improved economy has played a role in less small business owner seeking loans from the SBA. Typically, SBA loans benefit small businesses that wouldn’t normally qualify for a conventional loan, but with the improved economy, businesses are growing to where they did qualify.

“We have talked to many lenders and with the economy being strong these businesses are doing well and qualifying for conventional bank loans or they just don’t need financing right now,” Libersky said according to the StarTribune. “Also, our ‘microloans’ have increased to very small ethnic borrowers at lower dollar amounts through [nonprofit business advisors] such as WomenVenture, Neighborhood Development Center and African Development Center.

On a national level, the SBA gave out more than 72,000 loans in FY18 totalling to more than $30 billion in lending.

Related Content: Small Business News | Loans | Minnesota

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today

© 2001 - 2022 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy