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.