–
The U.S. Small Business Administration (SBA) set new records in
its major small business financing programs in FY 1999. New
records were set in total loan dollars, dollars loaned to
minority and women borrowers and venture capital investments.
SBA Administrator Aida Alvarez said today that the total for
loans and venture capital financing exceeded $16.35 billion.
"The SBA this past year helped tens of
thousands of Americans start or expand their small
businesses," Administrator Alvarez said. "This record
reflects the Clinton Administration’s strong commitment to a
growing and vibrant small business sector, and to opening the
doors of economic opportunity for all Americans.
"Since the end of fiscal year 1992, the SBA
has backed more than $71 billion in loans to small businesses,
more than was accomplished in the previous 25 years
combined," Administrator Alvarez said.
For FY 1999 (ending Sept. 30, 1999), the SBA
approved 43,639 loan guaranties amounting to $10.15 billion in
the 7(a) General Business Loan Guaranty program, a 12.5 percent
increase in loan dollars from FY 1998. SBA also approved 5,280
loans worth almost $2 billion under the Certified Development
Company (CDC) loan program. The combined dollar amount of $12.15
billion is a record, exceeding the previous mark of nearly $10.9
billion set in FY 1997.
SBA’s Small Business Investment Company (SBIC)
program, the agency’s premier vehicle for providing venture
capital to small, growing companies, produced a record amount of
equity and debt
SBICs
made almost 3,100 investments worth more than $4.2 billion, 30
percent greater than the record set in FY 1998, and more than
double the average for the previous five years.
"This represents remarkable growth for this
important program, especially when you consider that SBICs are
responsible for nearly half of all venture capital deals done in
the United States," Administrator Alvarez said.
During the year, 53 new SBICs with a combined
private capital of $788.1 million were licensed. At the end of
the year, the program had 354 licensees with combined private
capital of $8.33 billion, and total committed capital resources
amounting to more than $12 billion.
A record 28 percent of all SBA loan dollars in
FY 1999 went to minority borrowers – almost $3.36 billion to
12,127 minority-owned businesses. SBA also made more than $1.9
billion in loans to small businesses owned by women, also a
record.
Administrator Alvarez said the agency will
continue to make strong efforts to boost loans to women and
minorities over the coming year. "African-Americans are
nearly 13 percent of the population, but own less than 4 percent
of all businesses, and Hispanics make up more than 10 percent of
the population, yet own less than 6 percent of all businesses.
"We have to work harder to help close this
‘opportunity gap.’ Our private sector partners and our
partnership agreements with such organizations as the NAACP, the
National Urban League and the U.S. Hispanic Chamber of Commerce
should help SBA serve a broader cross-section of America’s
small businesses. The best way to promote economic empowerment
among minorities is to support the development of small
businesses in their communities," Administrator Alvarez
said.
SBA’s Microloan program, which promotes
economic empowerment at the smallest levels, provided $15
million in loans to more than 1,300 borrowers. Under the
program, SBA provides funding for loans and technical assistance
to non-profit community-based lenders. Since 1992, more than $90
million has been loaned under the program, with an average loan
size of under $12,000.
For more information on all of SBA’s programs
for small businesses, call the SBA Answer Desk at
1-800-U-ASK-SBA, or visit the SBA’s extensive website at
