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SBA loan program gains momentum in December – Buffalo News – loan – Google News

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Lending through a federal government-backed program aimed at supporting small businesses picked up in December.

Banks in the Buffalo-Rochester market originated 62 Small Business Administration 7(a) loans during the month, up 41 percent from December 2012, according to SBA data. For the first three months of the current fiscal year – which began in October – the total number of loans was 162, up 2.5 percent from the same three-month period in 2012.

Meanwhile, the total dollar value of the loans approved in December nearly tripled from a year ago, to $21 million. For the first three months of the fiscal year, the dollar volume was up 5 percent from the same period in 2012, to $32.2 million.

“Our dollars are up pretty good,” said Franklin J. Sciortino, the SBA’s Buffalo district director.

Nationally, the program has been trying to get back into a groove since a partial government shutdown last October disrupted the flow of activity. Under the program, the government provides guarantees for up to 85 percent of the principal amount of a loan. The program helps businesses who might otherwise have difficulty obtaining loans, by giving the banks more reassurance to lend to them.

Sciortino said he is hopeful that the elimination of fees for lenders and small businesess on loans of $150,000, a change which took effect Jan. 1, will bolster activity. “It levels the playing field” among participating institutions, he said.

Among individual banks, M&T Bank originated the most loans in December in the Buffalo-Rochester market, with 19, followed by First Niagara Financial Group’s nine. M&T’s three-month total of 51 also led all banks.

Measured by the loans’ dollar value, First Niagara led in December, at $6 million, followed by M&T at $3.9 million. Through three months of results, First Niagara was also the leader, at $8.5 million, followed by M&T’s $7.2 million.

email: mglynn@buffnews.com

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SBA loan program gains momentum in December – Buffalo News
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