Surprising New Data on SBA Loans

LOGO_Small_Business_TrendsA surprising summary of SBA Lending data was released by Scott Shane on Small Business Trends, and industry publication. By averaging data reported by the Fed for the last four issuances of the “Survey of Terms of Business Lending,” (a quarterly questionnaire administered by Federal Reserve Board of Governors to 398 domestic and foreign banks operating in the United States), Shane compiled results that Norris Lozano, CEO of BusinessUS believes are instructive for small business owners.

Here’s what the numbers show:

  • The average SBA-guaranteed loan amount was $276,000.
  • The “weighted-average maturity/ repricing interval” was 172 days.
  • The average annual interest rate on the loans was 3.91 percent.
  • 42.6 percent of the loans were prime-based.
  • 43.5 percent of the loans were subject to pre-payment penalties.
  • 68.2 percent of the loans were secured by collateral.
  • The average loan was slightly more than “moderate risk,” averaging 3.22 on a scale where “3” means “moderate risk” and “4” means “acceptable risk.”

This Small Biz Note was posted by Norris Lozano, CEO of BusinessUS, a California-based small business lender.