SBA backs more than $207M in upstate New York loans during FY 2015

SYRACUSE — The Syracuse district office of the U.S. Small Business Administration (SBA) backed more than $207 million in loans in its 34-county area during fiscal year 2015.

 

The dollar figure is the total of 870 loans in both the 7(a) and 504 loan programs, the SBA said in a news release issued Oct. 15

 

“With 7(a) loan program fee reductions in effect and 62 active lenders in the district, our loan approvals have broken the  $200 million mark for the first time,” Bernard J. Paprocki, director of the SBA Syracuse district office, said.

 

Although SBA does not make direct loans to small business, the agency’s use of its guaranty authority enables commercial lenders to make loans to small businesses that “they would otherwise not have made,” the agency contends. 

 

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

 

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

 

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

 

“Most active” lenders

Paprocki also announced the “most active” lenders in the Central New York and Southern Tier regions for the recently ended federal fiscal year 2015. 

 

M&T Bank (NYSE: MTB), Berkshire Bank, and Adirondack Bank had the highest number of 7(a) loan approvals in their respective categories based on asset size.

In the Southern Tier, M&T Bank, Five Star Bank, and Elmira Savings Bank had the highest number of 7(a) approvals in their particular categories.

 

For the 10th consecutive year, M&T Bank topped all large commercial banks in the Central New York and Southern Tier regions and the entire 34-county Syracuse district. 

 

M&T Bank assisted small businesses in Central New York with 106 loans at a value of $12.5 million and district-wide with 171 loans totaling $21 million. For small businesses in the Southern Tier, it approved 44 loans at a value of $5.1 million and district-wide, it approved 171 loans totaling $21 million.

 

Berkshire Bank was the most active large community lender in Central New York and the Syracuse district. It approved 81 loans to Central New York businesses valued at $3.1 million and 187 loans district-wide worth $9.1 million.

 

Five Star Bank was the most active large community lender in the Southern Tier, with 33 loans valued at $1.8 million.

 

Adirondack Bank was the top small-community lender in Central New York with 14 loan approvals valued at $4.2 million. Elmira Savings Bank ranked as the top small-community lender in the Southern Tier with six approvals worth $314,000.

 

Empire State Certified Development Corporation (ESCDC) was the most active SBA 504 program lender district-wide with 41 approvals valued at $46.8 million. ESCDC was also the top Community Advantage lender in the district, approving 12 loans worth $1.8 million. 

 

Community Advantage is a pilot 7(a) loan program that SBA introduced in 2012 to “meet the credit, management, and technical-assistance needs of small businesses in underserved markets” with a loan maximum of $250,000.