The upstate New York district of the U.S. Small Business Administration (SBA) on Nov. 2 announced it approved more than $200 million in 524 traditional loans for small businesses in 34 counties across upstate New York during federal fiscal year 2022 (FY22). The figures represent a year-over-year increase of 52 traditional loans from FY2021. The […]
Get Instant Access to This Article
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
- Critical Central New York business news and analysis updated daily.
- Immediate access to all subscriber-only content on our website.
- Get a year's worth of the Print Edition of The Central New York Business Journal.
- Special Feature Publications such as the Book of Lists and Revitalize Greater Binghamton, Mohawk Valley, and Syracuse Magazines
Click here to purchase a paywall bypass link for this article.
The upstate New York district of the U.S. Small Business Administration (SBA) on Nov. 2 announced it approved more than $200 million in 524 traditional loans for small businesses in 34 counties across upstate New York during federal fiscal year 2022 (FY22).
The figures represent a year-over-year increase of 52 traditional loans from FY2021. The federal fiscal year extends from Oct. 1 of a given year to Sept. 30 of the following year.
Approved SBA 7(a) loans in the upstate New York district declined in total amount and average loan size but increased by 29 loans from FY21 to FY22. That is “consistent with an agency-wide priority to approve smaller dollar loans for more small businesses,” the SBA said.
“Reaching more entrepreneurs with smaller loans helps create more jobs, foster new ideas and keep money in our local economy,” Bernard J. Paprocki, director of the SBA upstate New York district, said. “SBA loans are invaluable resources for viable small businesses that need support to get started or growing businesses that need working capital, equipment or real estate to meet demand.”
In its announcement, the SBA provided figures through its 7(a) and 504 lender report.
The SBA 7(a) loan approvals include 23 for NBT Bank, totaling $12.2 million with an average loan size of more than $531,000; 59 for KeyBank, totaling more than $11.7 million with an average loan size of more than $199,000; 10 for the New York Business Development Corporation, totaling more than $8.9 million with an average loan size of more than $898,000; 82 for M&T Bank, totaling more than $8.5 million with an average loan size of more than $104,000; and one loan for AmeriCU Credit Union, totaling $3.6 million.
The SBA 504 program loan approvals include 61 for Empire State Certified Development Corporation, totaling more than $60 million with an average loan size of more than $992,000; 8 for the Greater Syracuse Business Development Corporation, totaling more than $2.1 million with an average loan size of more than $269,000; and one loan for the Business Initiative Corporation of New York, totaling more than $1.7 million.
SBA’s 7(a) loan, 504 loan, and microloan programs are federally guaranteed loans available through SBA lending partners with special requirements. These loan programs are intended to help small businesses access funding at competitive rates they would not be able to otherwise, “growing the local economy and helping more entrepreneurs achieve the American Dream.”
The traditional loan totals are in addition to the federal money the SBA approved under pandemic-relief programs, such as the Paycheck Protection Program or COVID Economic Injury Disaster Loan.
In line with SBA’s priority to get smaller-dollar amount loans out to as many entrepreneurs as possible without extra cost, loans of $500,000 or less will have zero SBA fees in FY2023 (Oct. 1, 2022 to Sept. 30, 2023).
To apply for an SBA loan, a small business would apply with a financial institution that is an approved SBA lender. Typically, the small business is required to submit a business plan with financial projections and other key information to demonstrate the viability of the business.
For assistance in finding SBA lenders, creating business plans, and more, entrepreneurs in upstate New York can get free business counseling from SBA resource partners, including Small Business Development Centers, SCORE Mentors, WISE Women’s Business Center, and the Veteran Business Outreach Center.