SBA loans fall 67 percent in Arizona

According to the news from Arizona district office of the U.S. - SBA lending continues to decline across the state.

During the second quarter of fiscal 2009 ended March 31, 374 loans valued at $164 million were made. In the same quarter of 2008, 1,116 loans were made totaling $463 million; marking a 67 percent decline in the overall number of loans and a 65 percent decline in total dollars lent, executives said.

“Lenders remain risk averse and borrowers are reluctant to take on new debt. Credit standards are higher among lenders and declines in credit scores and collateral values are common among borrowers,” Blaney, SBA Arizona District Director said. “These conditions account for the decline in lending and conspire to prolong the perfect storm we’re currently riding out in the credit markets.”

“With the implementation of the American Recovery & Reinvestment Act of 2009 and other recent program changes, we are hopeful that SBA loan volume will increase significantly,” Blaney said. “Across the state, the economic crisis has created a dire situation for small-business owners – the very people who and have created 70 percent of our jobs over the past decade. Our state’s economic recovery will be driven in large part by small businesses and entrepreneurs, and SBA loans will continue to be the critical financial resource they need in the midst of this crisis.”