Small business lending dropped significantly last year in Nebraska, but the numbers are still strong.
According to the Small Business Administration, there is $198.7 million worth of SBA loan guarantees in the state in the 2022 fiscal year that ends Sept. 30, which is down about $45 million from the record number in fiscal year 2021.
But the total number of loans in 2022 is still the second highest in Nebraska and $30 million more than the third ranking year.
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“The funding numbers for fiscal year 2022 are more than we expected,” said Tim Mittan, district director for the SBA Nebraska Office, in a news release.
While it wasn’t close to a one-year record for total lending, one category did hit a record.
The SBA says 85 businesses have been approved for what are known as 504 loans worth $74.4 million, up from 77 loans worth $50.5 million in 2021.
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504 loans, which allow businesses to purchase major equipment or construct, purchase or expand buildings, are facilitated through nonprofit lenders called certified development companies.
Nebraska Economic Development Co., based in Lincoln, is the largest lender at 504 in the four-state area.
Scott Sailors, the president of NEDCO, said 81 of the loans totaled $68.7 million, setting records for the organization.
Sailors said that NEDCO has made more loans for medical and dental offices and has also seen a slight rebound in hotel projects, which have significantly slowed down during the pandemic.
He also said that higher interest rates have not stopped many projects.
“We see people moving forward,” Sailors said.
NEDCO ranks 28th overall out of about 200 certified development companies nationwide for loan volume in FY 2022, and almost all CDCs above it are based in larger cities.
In addition to Lincoln-based NEDCO leading 504 loans, two Lincoln banks were leading lenders for traditional SBA 7(a) loans in Nebraska in the most recent fiscal year.
First State Bank Nebraska is the leading lender in the number of loans with 42, while Union Bank & Trust is second with 28.
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Measured by the amount of loans, Union Bank was first with about $12.4 million, while First State was second with about $10.8 million.
Overall, the SBA Nebraska Office says nearly $200 million worth of 504 and 7(a) loans in FY 2022 have created or saved more than 3,750 jobs in the state.
Those aren’t the only loans Nebraskans are taking advantage of, though.
SBA Omaha reported that it guaranteed 85 microloans for $1.6 million, up from 61 loans for $1.2 million last year. Microloans are loans of $50,000 or less available to qualified small businesses and nonprofit child care providers.
And business owners in the state continue to take advantage of pandemic loan programs.
SBA Omaha said Nebraskans received 1,716 Economic Injury Disaster Loans worth nearly $328 million in FY 2022. That’s down from more than 15,000 loans worth more than $1.2 billion in FY 2021, but the program is only available for three months of the SBA’s fiscal year.
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5 ways tech innovation has changed skilled trades jobs
5 ways tech innovation has changed skilled trades jobs
New technologies can impact the companies that adopt them, helping to reduce errors and increase productivity. That is as true today as it was then.
The COVID-19 pandemic, for example, has accelerated the shift to automation within many businesses seeking to reduce labor shortages and increase profits. A September 2021 report by the Harvard Business Review found that jobs related to artificial intelligence, algorithms, and automation saw a 28% increase, compared to the previous quarter of the year. And an April 2022 report on cloud computing predicted that spending on cloud-based services will approach $600 billion next year, compared to slightly more than $400 billion in 2021.
The construction industry and other trade jobs, in particular, have undergone a major technological shift of late as industries navigate supply chain issues and workforce shortages. ServiceTitan has compiled a list of some of the technologies based on an Association of General Contractors non-random survey of its members, other research reports, and industry news coverage.
Images by Sorn340 Studio // Shutterstock
Cloud-hosted technologies
As mentioned before, many companies, including commercial enterprises, are increasingly leaning on cloud-hosted technologies. The way companies navigate supply chain issues caused by the pandemic shows the benefits of putting information in the cloud.
For example, heating, ventilation, and air conditioning components are in high demand, largely due to supply chain issues. As a result, many trading businesses do not have enough new equipment, raw materials such as PVC, or replacement parts to meet demand. Manufacturers and businesses alike are also grappling with labor shortages. Companies that do well are those with updated cloud inventory management systems. These companies can better analyze which products can be sourced in the US, determine the cost of equipment and materials, and prevent potential loss of revenue. And making sure equipment and materials are available helps keep workers engaged by reducing downtime due to supply shortages.
jamesteohart // Shutterstock
Mobile software
Many companies use mobile software apps on construction sites. Construction software apps help employees on a project analyze and share data in real-time, and allow workers to generate field reports faster. According to the AGC survey published in January, most members (68%) say they will use mobile software technology this year for daily field reports. Sixty percent of AGC members also said they plan to use mobile software for employee time tracking, and 57% responded that they plan to use the software for field access to work information.
sculpies // Shutterstock
Virtual and augmented reality
Virtual and augmented reality dates back to the 1980s, when government agencies like NASA used the technology to create realistic scenes and objects. Mainstream interest waned for a while, but in recent years, there has been more development and funding of the technology.
AR is achieved through visual elements and sound through technology, while virtual reality tries to create a sensory experience that can include sight and touch. The AR market is expected to grow to a value of nearly $600 billion, according to a 2021 Grand View Research report.
Many companies have used AR and VR technologies in recent years, including Microsoft’s creation of the HoloLens headset. The device uses AR technology with holographic processing and multiple optical sensors to simulate a virtual world.
Technology like HoloLens can help engineers find design problems or efficiencies at an early stage and create accurate models before construction begins. On construction sites, the device can be used to inspect for safety or help train workers. McKinstry, a company with multiple locations across the US, used HoloLens to build an AR solution for a pipe-hanger installation project.
SeventyFour // Shutterstock
Building an information model
Architectural blueprints and technical drawings are increasingly being replaced by information modeling, a digital representation of spaces that is widely used by architects, engineers, and construction workers. BIM can provide interior and exterior 3D model data and documentation of a building. A 2021 Dodge Data & Analytics report found that BIM use is common among architects, with 40% using the technology for space use plans. About one in five AGC members surveyed plan to increase BIM investments by 2022.
ME Image // Shutterstock
Drones
Drones monitor the environment while work is in progress and can catch potentially dangerous situations. In 2021, for example, drone surveillance footage revealed a crack in Tennessee’s I-40 bridge, which posed a threat, causing the bridge to be closed for repairs to prevent further disaster.
The construction industry can expect to see major infrastructure investments in President Biden’s bill—which includes $110 billion for road and bridge projects and will allow grants to use U.S.-made drones to help secure safety while the works are in progress. Other laws have recently been passed to help research universities train future drone operator employees.
This story originally appeared on ServiceTitan and was created and distributed in partnership with Stacker Studio.
Dmitry Kalinovsky // Shutterstock
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On Twitter @LincolnBizBuzz.
