Small business lending drops in 2022 but still second best on record in Nebraska

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.

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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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Call the writer at 402-473-2647 or [email protected]

On Twitter @LincolnBizBuzz.


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