In a year when more than 118,000 Massachusetts small businesses received Paycheck Protection Program loans, the state’s U.S. Small Business Administration office still saw almost $450 million in lending to more than 1,500 small businesses through its traditional loan products.
More than 100 lenders participated in the SBA’s 7(a) loan guaranty program, the 504 loan program and the microloans programs in the fiscal year ending Sept. 30, though volume in the flagship 7(a) program was down 28.7 percent compared to the previous fiscal year, the SBA’s Massachusetts district office said in a statement.
“Collectively, including 7(a), 504 and microloans, the SBA with the help of over 113 different lenders, supported capital to 1,561 small businesses for $448.6 million in Massachusetts,” Robert H. Nelson, SBA Massachusetts district director, said in the statement. “We thank all of our partners and friends for working with the SBA to ensure small businesses get the access to capital they need to start, grow, expand and recover.”
The 7(a) program had 1,136 loans in Massachusetts for more than $284 million through 113 lenders. This program last year saw 1,593 loans in Massachusetts for a total of more than $357 million.
Eastern Bank was the top SBA 7(a) lender in Massachusetts for the 12th year in a row with 426 loans totaling $41.23 million and the top third-party 504 lender with 18 loans totaling $12.18 million. Eastern Bank was also New England’s top SBA.
TD Bank was the next highest 7(a) lender with 83 approvals totaling $12.28 million, followed by Webster Bank with 43 loans for $13.98 million.
Low interest rates helped drive activity in the 504 Loan Program, the SBA said. More than 270 loans for $161.53 million were approved, with Bay Colony Development Corp. and Granite State Economic Development Corp. as the top two producers. This program in the previous fiscal year had 247 loans for $156.31 million.
The microloan program, which provides up to $50,000 to help start and expand small businesses, also saw more lending in the fiscal year. Ten intermediaries approved 155 microloans totaling $2.79 million, up 18.3 percent and 19.5 percent, respectively, compared to last year.
The average microloan in Massachusetts was $17,997, with Accion East as the top lender with 46 loans totaling $314,947, followed by Common Capital with 25 approvals for $574,247 and Dorchester Bay Economic Development Corp. with 19 approvals for $245,750.
In addition to 118,384 PPP loans totaling $14.31 billion, Massachusetts small businesses affected by the pandemic also received funds through the Economic Injury Disaster Loan program. The Massachusetts district office through Oct. 19 had 59,915 approvals totaling $3.49 billion for loans to support working capital needs.
