"We anticipate this trend to remain strong for the remainder of the year as we are processing more loan applications from many of our lending partners across the entire state," said Connecticut SBA District Director Bernard Sweeney. "Not only are we seeing this trend on a statewide level but also nationally, as banks are recognizing the strong demand for small-business loans and are looking to the SBA for support through reduced fees and increased guarantees."
The American Recovery & Reinvestment Act of 2009 (ARRA) signed into law on February 17, 2009, provided assistance to small businesses including an increase in the guarantee on all loans up to 90 percent from 75 to 85 percent as well as the elimination of guaranty fees, resulting in substantial savings for small business borrowers.
Since the ARRA was enacted, the SBA nationally has supported more than $25 billion in lending to small companies through its two largest loan programs and seen its average weekly dollar volume increase. During the same period, Connecticut financial institutions approved 680 loans totaling $213 million in loans to small business undergirded by SBA guarantees. Connecticut's average weekly loan volume has also increased by 123 percent compared to the weeks leading up to February 17, 2009.
A special 100-percent guaranteed, deferred-payment loan program up to $35,000 created under ARRA, known as America's Recovery Act (ARC), has been used by 31 firms in Connecticut since the start of the new fiscal year putting an additional $992,100 into the hands of small business owners.
Among SBA lenders, Webster Bank, Connecticut Community Investment Corporation, Peoples United Bank and Fairfield County Bank, continue to report increases in lending over the prior year. Webster Bank was the top SBA volume lender in the state for the first half of the year with 43 loans totaling over $6.6 million followed by Connecticut Community Investment Corp. with 29 loans for $10.1 million, People's United Bank, 29 loans for $7.9 million and Fairfield County Bank, 23 loans totaling $3.2 million
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