SBA Lenders Are Bullish on 2014

By Charles H. Green

SBA lenders have indicated they are optimistic about business prospects for the Small Business Administration’s 2014 fiscal year, which starts October 1. Almost 90% of those responding to the SBA Lender’s Optimism Outlook expect that their dollar volume of SBA loans will increase in 2014 and 60% believe they will improve the application-to-approval ratio at their bank.

Last week, the SBFI and Coleman Report distributed a survey to gauge the business outlook among SBA managers, business developers, underwriters, service providers and other vital participants who play a role in turning SBA applications into capital. The survey asked respondents to grade their 2013 business lending performance and then project the direction of their 2014 results.

Other survey results:

61% indicated they were satisfied with program support and promotion by the SBA (37% were not, 2% did not know).

58% indicated they expected the U.S. economy to expand during 2014 (26% did not, 16% did not know).

39% indicated their company would be hiring more people to facilitate small business loans in 2014 (40% were not, 21% did not know).

Opinions about the most significant barrier to funding more loans in 2014 were evenly divided:

23% cited Restrictive Lending Policies;
21% cited Depressed Borrower Demand;
19% cited SBA Procedures;
26% said All of the Above;
11% said None of the Above.

For a complete copy of survey results, click on SBA Lender Survey.