Small business loans in Nebraska have fallen sharply over the past year, but the numbers remain strong.
The state had $198.7 million worth of SBA loan guarantees in the 2022 fiscal year, which ended Sept. 10, according to the Small Business Administration. 30, a decrease of approximately $45 million from the record FY2021 figure.
But the 2022 loan total is still the second-highest ever in Nebraska, $30 million more than the third-ranked year.
“The amount of funding for FY 2022 has far exceeded our expectations,” Tim Mittan, regional director of the SBA’s Nebraska office, said in a news release.
While overall lending hasn’t come close to having a record year, one category did hit a record high.
The SBA said 85 businesses were approved for 504 loans worth $74.4 million, up significantly from 77 loans worth $50.5 million in 2021.
504 loans, which allow businesses to purchase major equipment or construct, purchase, or expand buildings, are facilitated by nonprofit lenders called certified development companies.
The Lincoln-based Nebraska Economic Development Corporation is the largest 504 lender in the four-state area.
NEDCO President Scott Sailors said it provided 81 of those loans, worth about $68.7 million, a record for the organization.
Sailors said NEDCO has lent heavily to medical and dental practices, and there has also been a small rebound in hotel projects, which have largely dried up during the pandemic.
He also said higher interest rates have not yet dampened many projects.
“We’re seeing people going full steam ahead,” Sailors said.
NEDCO ranks 28th out of about 200 certified development companies nationwide in terms of loan volume in FY2022, and nearly all CDCs ahead of it are located in much larger cities.
In addition to Lincoln-based NEDCO’s leadership in 504 loans, the two Lincoln banks were also the largest lenders of traditional SBA 7(a) loans in Nebraska during the most recent fiscal year.
First State Bank Nebraska ranked first with 42 loans, while Union Bank & Trust was second with 28 loans.
Measured by loan value, Union Bank came in first with about $12.4 million, while First State came in second with nearly $10.8 million.
Overall, nearly $200 million worth of 504 and 7(a) loans in FY 2022 created or saved more than 3,750 jobs in the state, the SBA Nebraska office said.
Those aren’t the only loans Nebraskans have taken advantage of, though.
SBA Omaha reported that it guaranteed $1.6 million in 85 small loans, up from 61 loans worth $1.2 million last year. Microloans are loans of $50,000 or less made to eligible small businesses and nonprofit child care providers.
Business owners in the state continue to take advantage of the pandemic loan program.
SBA Omaha said Nebraskans received 1,716 Economic Injury Disaster Loans worth nearly $328 million in fiscal year 2022. That’s down from more than 15,000 loans worth more than $1.2 billion in fiscal 2021, but the program is only available during three months of the SBA’s fiscal year.