Sept. 04--More loans, but less overall dollars.
That is how a key small-business lending program backed by the federal government looks in the Buffalo-Rochester market through the first 11 months of the federal fiscal year, compared to the same period a year ago.
The Small Business Administration reported 646 of the 7(a) loans were approved through August, up 6.4 percent from a year ago. But the combined dollar value of those loans dropped 4.6 percent, to $108 million.
The SBA previously eliminated fees on SBA-backed loans of $150,000 or less. That change could be attracting more borrowers applying for smaller loans.
M&T was the program's runaway leader in the Buffalo-Rochester market through the first 11 months of the fiscal year, which began Oct. 1, 2013, and ends Sept. 30. The Buffalo-based bank reported 234 loans for $29 million. It accounted for 36 percent of the loans and 27 percent of the dollar volume among participating institutions.
Under the program, the federal government provides guarantees for up to 85 percent of the principal amount of a loan. It is designed to help small businesses that might otherwise have trouble getting a loan, by giving banks more confidence to the lend to them.
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