In line with a survey from Balboa Capital that requested small enterprise homeowners about their Small Enterprise Administration (SBA) mortgage borrowing practices and volumes in 2022, 31.25% of small enterprise homeowners utilized for SBA loans in 2022 and 61.9% of SBA mortgage requests have been permitted. The survey was despatched to a pattern of small enterprise homeowners throughout the US through the first two weeks of 2023.
“Small companies drive native and regional communities and the nationwide financial system, and their development and success rely on entry to capital,” Kevin Umeda, vp and director of gross sales administration at Balboa Capital, stated. “Whereas a number of small funding choices can be found for small enterprise homeowners, we needed to gauge the demand for SBA loans in 2022. Past evaluating demand for these loans, our survey speaks to companies’ curiosity within the numerous sorts of SBA loans on the market and the approval price amongst respondents.”
Balboa Capital’s survey revealed that the preferred sorts of SBA mortgage merchandise that small enterprise homeowners utilized for in 2022 included Customary 7(a) loans (30.43%), SBA Categorical Loans (26.09%) and CDC/504 loans (21.74%). Amongst small enterprise homeowners who utilized for SBA mortgage merchandise, along with the 61.9% of mortgage requests that have been permitted, 23.81% have been denied and 14.29% are nonetheless being reviewed or processed. Relating to the quantity of SBA funding requested, 63.64% of small enterprise homeowners requested as much as $499,999, 31.82% requested between $500,000 and $999,999 and 4.55% requested greater than $1 million.