SBA Syracuse District loan approvals, dollar value rise in 2014 fiscal year

SYRACUSE — The Syracuse district office of the U.S. Small Business Administration (SBA) supported loan activity in fiscal year 2014 that represented a 10 percent increase in number of approvals and a 14 percent rise in dollar value over the last fiscal year. 

The agency backed 648 loans valued at nearly $147 million during the fiscal year that ended Sept. 30. 

That’s according to Bernard J. Paprocki, director of the SBA Syracuse District office.

The SBA Syracuse office made the announcement in a news release Nov. 13. Paprocki spoke with the Business Journal News Network on Nov. 17.

The SBA Syracuse District office helped generate that growth despite the federal government being closed for part of the beginning of fiscal year 2014, he notes. 

“The government was shut down for a month, so we achieved these kinds of numbers in only 11 months, which is even more impressive, I think,” says Paprocki. 

Area banks and lenders make the loans while the SBA guarantees them, enabling commercial lenders to make loans to small businesses that they would otherwise not have made, the agency contends. 

The SBA backs loans in two types of loan programs.

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

The total loan-approval figure includes 606 loans from the 7(a) program valued at more than $126 million and 42 loans from the 504 program valued at nearly $21 million, the SBA Syracuse office said.

The 7(a) loan-program’s fee reductions and 58 active, commercial lenders in the district helped lead to the increases in the regional SBA loan approvals and amounts. 

The average 7(a) loan size in upstate New York increased more than 20 percent over last year to more than $208,000, says Paprocki. 

Onondaga County had the most loan approvals across both programs for the second straight year, totaling 104 loans valued at more than $30 million, he added.

The SBA Syracuse office used the same news release to recognize its most active regional lenders in its programs.

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

For the ninth consecutive year, M&T Bank topped all large commercial banks in the Central New York region and the entire 34-county Syracuse district. 

M&T Bank in 2014 assisted Central New York’s small businesses with 78 loans at a value of $13.2 million and district-wide provided 161 loans totaling $24.3 million, the SBA said.

Adirondack Bank was the top small-community lender in Central New York for the sixth straight year with 15 loan approvals valued at $4 million.

Empire State Certified Development Corporation (ESCDC) was the most active 504 lender district-wide with 36 approvals valued at $19.4 million. 

ESCDC was also the top Community Advantage lender in the district, approving 16 loans worth $2.1 million. 

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

Paprocki credits the relationships the SBA has with its lending partners; the 7(a) loan fee reductions, which will continue through 2015; and a streamlined applications process for the increased loan numbers in fiscal year 2014. And, he anticipates the rising activity will continue in this new fiscal year.

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

Contact Reinhardt at ereinhardt@cnybj.com