Federal lending spikes in county

The most popular type of government-backed lending to small businesses surged to a record this year in El Paso County, ending three years of declines.

The U.S. Small Business Administration guaranteed 289 loans for $57.5 million to county businesses in its 2007 fiscal year, which ended Sept. 30. The amount loaned was up 71.5 percent from 2006, which was a five-year low, and eclipsed the 2003 record of $52.8 million.

The number of loans made in the county was up 39.6 percent from a year ago and broke the 2005 record of 213. The totals include only the SBA’s general lending program and not a second type of SBA loan used mostly to acquire or develop commercial real estate.

The increase comes during the second year of a pilot program started last year to boost local small-business lending. The program is a partnership of the SBA, the Greater Colorado Springs Chamber of Commerce, the Service Corps of Retired Executives and the Colorado Springs Small Business Development Center.

The program trains bankers on making government loans; the next session is 8 a.m. to 4 p.m. Thursday at the center. Call 262-3844 or go to www.cssbdc.org for information.

“I definitely credit the pilot program for increasing the number of lenders,” said Chris Chavez, an SBA spokesman in Denver. “As you get more lenders in the community, you get more competition, more options for small businesses and more loan activity.”

Three dozen lenders made SBA loans in El Paso County last year, headed by U.S. Bank, which made 66 loans totaling $6.31 million. Colorado Lending Source loaned the most in the county, $11.2 million, mostly in the agency’s real estate lending program.

Becky Fuller, who organized the program and also is southern Colorado business development manager for Colorado Lending Source, said the program helped to attract more local lenders to SBA’s lending programs, which she said promotes economic development.

David Csintyan, the chamber’s acting president, said, “All four organizations can take satisfaction that we are bearing the fruits of these efforts.”

SBA-backed lending in Colorado this year rose 5.4 percent from a year ago to a record 2,808 loans, but the amount loaned fell 2 percent to $545 million.

Nationwide, the agency made a record 110,275 loans for $20.6 billion, with the amount loaned up 1.7 percent.

The state and national numbers include lending from all SBA programs.

U.S. Bank also was the state’s top SBA lender, making 540 loans totaling $47.8 million.

CONTACT THE WRITER: 636-0234 or wayneh@gazette.com

TOP LENDERS

The 10 largest lenders in El Paso County under the U.S. Small Business Administration’s guarantee programs, by number of loans:

Name Loans Amount

U.S. Bank 66 $6.31 million

JPMorgan Chase Bank 50 $2.94 million

Wells Fargo Bank 38 $5.99 million

Colorado Lending Source 24 $11.2 million

Pikes Peak Regional Development Corp. 17 $9.8 million

Capital One 16 $770,000

KeyBank 10 $267,000

Newtek Small Business Finance Inc. 6 $687,500

Hanmi Bank 5 $1.91 million

First Community Bank 5 $1.29 million

SOURCE: U.S. Small Business Administration

SBA LENDING TRENDS

Small Business Administration loans in El Paso County, 2002-07

2007: 289 loans for $57.5 million

2006: 207 loans for $33.5 million

2005: 213 loans for $46.8 million

2004: 173 loans for $51.9 million

2003: 165 loans for $52.8 million

2002: 150 loans for $42.4 million

SOURCE: U.S. Small Business Administration