SBA announces FY 2018 small-business loan data, top regional lenders

SYRACUSE — The U.S. Small Business Administration (SBA) on Oct. 11 released its fiscal year (FY) 2018 lending report, with 670 7(a) and 504 loan approvals valued at $177 million across the 34-county Syracuse district.

“Small businesses in upstate New York are accessing the affordable capital they need to start and expand with SBA-backed loans,” Bernard J. Paprocki, director of the SBA Syracuse district office, said in a release. 

Paprocki also announced the most active lenders in the Central New York and Southern Tier regions for federal fiscal year 2018 that ended Sept. 30. In Central New York, Buffalo–based M&T Bank (NYSE: MTB); Pittsfield, Massachusetts–based Berkshire Bank; and Utica–based Adirondack Bank had the highest number of 7(a) approvals in their respective categories, based on asset size.

In the Southern Tier, M&T Bank; Five Star Bank, which is based in Warsaw in Wyoming County; and Tioga State Bank, which is based in Spencer in Tioga County, had the highest number of 7(a) approvals in their respective categories, based on asset size.

The 7(a) loan program is the most widely used access-to-capital SBA program, with flexible use of proceeds and a loan maximum of $5 million. 

The SBA’s 504 program offers long-term, fixed-rate financing for major assets such as land, building, and equipment with a loan maximum of $5 million. 

Overall lending

For the 12th straight year, M&T Bank topped all large commercial banks in the Central New York region and the entire 34-county Syracuse district in small-business lending, the SBA said. M&T Bank in fiscal year 2018 assisted small businesses in Central New York with 58 loans at a value of $3.3 million and district-wide with 102 loans totaling $7.8 million.

For the fourth year in a row, Berkshire Bank was the most active large community lender in the Central New York region and the entire Syracuse district. Berkshire Bank approved 45 loans to Central New York businesses, valued at $4.2 million and 92 loans district-wide worth $10.2 million. 

Adirondack Bank was the top small community lender in Central New York with 12 loan approvals valued at $6.3 million. 

For the 12th year in a row, M&T Bank topped all large commercial banks in the Southern Tier, per the agency’s news release. M&T Bank in fiscal year 2018 assisted small businesses in the Southern Tier with 33 loans at a value of $3.5 million. 

Five Star Bank was the most active large community lender in the Southern Tier for the fourth year in a row, with 20 loans valued at $723,800. 

For the second year in a row, Tioga State Bank ranked the top small community lender in the Southern Tier with five approvals worth $409,400.

“Strong relationships with our lending partners and streamlined application processes will continue to help more … entrepreneurs use SBA financing to create jobs and invest in their businesses and communities,” Paprocki said in describing the activity in both the Central New York and Southern Tier regions.

The SBA doesn’t make direct loans to small businesses, but the agency says its use of its guaranty authority enables commercial lenders to make loans to small businesses they would otherwise not have made. 

The SBA Central New York region encompasses the 13 counties of Cayuga, Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oneida, Onondaga, Oswego, and St. Lawrence.

The SBA Southern Tier region covers the 10 counties of Broome, Chemung, Chenango, Cortland, Delaware, Otsego, Schuyler, Steuben, Tioga, and Tompkins.

The other 11 counties in the 34-county Syracuse District are in the Capital region.