Connecticut small businesses collected $314 million in federal borrowing assistance in fiscal 2019 — 8 percent more than a year earlier — a prosperous cue for them and lenders in the state, authorities say.
The U.S. Small Business Administration (SBA) District Director Anne Hunt said SBA approved 776 loans in the 12 months ended Sept. 30. Of those, 661 were guaranteed loans; 64 were loans in which the borrower participates with other financial backers; and 51 microloans, Hunt said.
SBA guarantees of up to $5 million to buy real estate, equipment and inventory lessen the default risk for private lenders who originate loans to eligible borrowers. The agency also extends financial counseling to borrowers, among other services.
“The increase in SBA lending is a result of the hard work performed by the Connecticut SBA staff and the efforts of our lenders and resource partners across the state,’’ Hunt said in a statement. “Many local banks have expanded their small business lending initiatives, which is great for the Connecticut economy…”
Among the top five SBA guaranteed lenders in Connecticut: Webster Bank; People’s United Bank; TD Bank; Liberty Bank; and Manufacturers & Traders Trust Co., of Buffalo, N.Y.
Hartford’s New England Certified Development Corp. ranked No. 1 in SBA’s 504 loan program and Community Economic Development Fund in Meriden was the top microlender.
