Minnesota banks step up SBA lending to record level

Northwestern Financial Review, Jan 15, 2001

The Minnesota office of the U.S. Small Business Administration approved a record $292 million in loans to small businesses during fiscal year 2000. It was the highest dollar volume of SBA guaranteed loans approved in one year in Minnesota since the agency was created in 1953. The previous year, the SBA's Minnesota office approved $279 million in loans.

The Minnesota office approved 1,300 loans, making it eighth in the nation in the number of SBA loans approved. SBA offices in Los Angeles, Dallas, Newark, N.J., New York, Miami, Santa Anna, Calif., and San Francisco had more loan approvals.

The Minnesota office was fifth in the nation in the number of 504 Certified Development Company loans approved with 174 worth $62 million.

Businesses owned by woman received 243 loans worth $32.4 million during the year.

"Women are starting businesses at a faster rate than any other segment of our population," commented Edward Daum, director of SBA's Minnesota district office. "We are delighted to provide lending programs that help women entrepreneurs obtain the capital needed to start or expand small businesses."

Studies by SBA's Office of Advocacy have shown the number of women-owned business ventures has doubled to 9.1 million from 4.5 million in 1987. In Minnesota, there are 98,000 self-employed women, representing 39.4 percent of total self-employed entrepreneurs, according to U.S. Bureau of Labor statistics.

The 10 most active financial institutions to use SBA programs in Minnesota during the 2000 fiscal year, which ended Sept. 30, were Wells Fargo, Associate/Riverside Bank, Stearns County Bank, Signal Bank, Twin City Metro Certified Development Co., Minnesota Business Finance Corp., Anchor Bank, Bremer/ First American Bank, Western Bank and Central Minnesota Development Co. In addition, the following banks were listed among top lenders to women-owned businesses: Richfield Bank, First National Bank of Elk River and Marquette Bank.

In September, SBA granted Sunrise Community Banks preferred lender status. Sunrise Community Banks is made up of St. Anthony Park Bank and University Bank in St. Paul, and Franklin Bank in Minneapolis. In Minnesota, 498 financial institutions are authorized to make SBA loans; only 15 financial institutions have preferred status.