Small Business Lending Down in 2022 But Still 2nd Best Ever in Nebraska

According to the Small Business Administration, there were $198.7 million in loan guarantees in the state in fiscal 2022 that ended Sept. 30, which is about $45 million less than the record in fiscal 2021.

But total loan volume in 2022 was still the second highest ever in Nebraska and increased by $30 million from the third-ranked year.

“Financing numbers for fiscal year 2022 far exceeded our expectations,” Tim Mitan, district director for the SBA’s Nebraska office, said in a press release.

Although it was nowhere near a record year for total lending, one category did break a record.

The Small Business Agency said 85 businesses were approved for what it calls 504 loans worth $74.4 million, up significantly from 77 of the $50.5 million in 2021.

The 504 loans, which allow companies to purchase large equipment or construct, purchase or expand buildings, are facilitated through nonprofit lenders called Certified Developers.

Nebraska Economic Development Corporation, headquartered in Lincoln, is the largest 504 lender in a four-state area.

Scott Sailors, president of NEDCO, said it made 81 of those loans worth about $68.7 million, which is record numbers for the organization.

Sailors said NEDCO has made plenty of loans for medical and dental offices and has also seen a small revival in hotel projects, which have essentially dried up during the pandemic.

He also said that high interest rates have not yet curbed many projects.

“We see the people going forward in full force,” said the sailors.

NEDCO ranked 28th overall out of nearly 200 approved development companies nationwide in terms of loan volume in fiscal year 2022, and nearly all of the community development centers before it are located in much larger cities.

In addition to Lincoln-based NEDCO leading the way for 504 loans, two Lincoln banks were among the largest lenders of traditional SBA 7(a) loans in Nebraska in the most recent fiscal year.

First State Bank Nebraska was ranked first for the number of loans with 42, while Union Bank & Trust was second with 28.

As measured by the volume of loans, Union Bank ranked first with about $12.4 million, while First State came in second with about $10.8 million.

Overall, the Nebraska SBA office said nearly $200 million worth of 504 and 7(a) loans in fiscal year 2022 created or saved more than 3,750 jobs in the state.

Those weren’t the only loans Nebraskans benefited from.

SBA Omaha reported that it had guaranteed 85 small loans for $1.6 million, up from 61 loans for $1.2 million last year. Microloans are loans of $50,000 or less that are available to qualified small businesses and nonprofit childcare providers.

The state’s business owners continued to benefit from pandemic loan programs.

The SBA of Omaha said Nebraskans received 1,716 economic disaster loans worth about $328 million in fiscal year 2022. That was down from more than 15,000 loans worth more than $1.2 billion in fiscal year 2021, but the program was only available for three months from Basel Accord fiscal year.