SBA lending declines in El Paso County, but not as much as for state

Year-end numbers weren’t good for Small Business Administration loans in Colorado, with total lending falling to the lowest level since 2000. However, say SBA lenders and officials, lending improved as the year went on and the trend continues to be positive.

El Paso County fared better than the state as a whole, with SBA lending falling 13.7 percent to $44.4 million on 111 loans — the lowest number since 2002. SBA loans made by private lenders and insured by the government.

Statewide, for the fiscal year that ended Sept. 30, SBA lenders made 1,138 loans worth $330 million in Colorado, off 40.5 percent from 2008.

With the banking crisis and the credit crunch hitting the nation at the beginning of the fiscal year, the low numbers aren’t surprising, said Chris Chavez, communications director for the SBA in Denver. That’s improved, he said, since the American Recovery and Reinvestment Act reduced fees and improved loan guarantees in February.

“We’re seeing more loan volume now than we have in six or seven months,” Chavez said. “Small businesses had a tough time in the last 18 months.”

Mike O’Donnell, executive director of Colorado Lending Source, a nonprofit SBA lender, said his company’s loan volume has been slowly improving and, for stronger businesses, low rates make this an attractive time to borrow and reinvest.

“We know next year or the year after, (interest rates) will be up at 8 percent, so now is the time to do this, if you’re positioned to do it,” O’Donnell said.

Tom Naughton, president of U.S. Bank’s Colorado Springs region, said even with credit available and rates low, many businesses are wary of taking on debt until they’re sure the economy is improving.

“Whenever you go through a recessionary period, people are a little gun shy,” he said. “They are not looking at expanding or utilizing credit, they’re using their own cash.”

SBA LENDING

Small Business Administration lending in El Paso County by fiscal year:

2009 — $44.4 million

2008 — $51.5 million

2007 — $57.5 million

2006 — incomplete data

2005 —$46.8 million

2004—$51.9 million

2003 — $52.8 million

2002 — $42.4 million

2001 — $41.9 million

2000 — $36.4 million