Small-business lending rebounds in Nebraska in 2024

By MATT OLBERDING – Lincoln Journal Star, Neb. (TNS)

Lending to small businesses in Nebraska rebounded sharply in fiscal year 2024.

According to the annual report from the U.S. Small Business Administration, the number of SBA-guaranteed loans was up more than 39% from 2023, while the total dollar amount of the loans grew by nearly 20%.

Overall, the state’s small businesses received $195.7 million in SBA-guaranteed financing, which was the third-highest amount ever recorded, trailing only 2021 and 2022.

Nebraska saw big increases in both its 7(a) lending program and the 504 loan program.

The 7(a) program, which guarantees traditional small-business loans, guaranteed 368 loans totaling $139.1 million in fiscal 2024, up from 295 loans worth $105.2 million in fiscal 2023.

The 504 program, which guarantees loans that allow businesses to buy large equipment or build, buy or expand buildings, and are facilitated through nonprofit lenders called certified development companies, saw fewer loans approved in 2024 — 23, compared with 31 in 2023 — but the value of those loans was $56.6 million, compared with just $35.2 million in 2023.

The SBA’s microloan program, which provides loans of $50,000 or less to eligible small businesses and nonprofit child care providers, saw a slight decline, with 61 loans worth $1.3 million in 2024 vs. 88 loans for $1.5 million in 2023.

Lincoln’s Union Bank & Trust continued to be one of the top SBA lenders in the state, providing both the most number of loans, 77, and the highest total loan value, $26,726,200. Those numbers were more than double the next-closest bank.

Another Lincoln-based bank, First State Bank, had the third-highest loan total and the sixth-highest total loan value.

“We want to thank all the SBA lenders, resources partners, economic development professionals, associations and volunteers who helped keep our businesses going and growing this past year,” Tim Mittan, district director of the SBA Nebraska Office, said in a news release.

The SBA said the loans in fiscal 2024 in Nebraska helped create or retain more than 4,100 jobs.

(c)2024 Lincoln Journal Star, Neb.

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