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SBA Sees Record Increase In Lending Activity in Nebraska in FY2021

Omaha, NE – (November 5, 2021) Nebraska’s entrepreneurial climate showed definite signs of recovery this year from the widespread economic impact of the COVID-19 pandemic, according to figures released by the U.S. Small Business Administration. The total dollar amount of SBA loan guarantees rose to $243.7M, a 37% ($90M) increase from fiscal year 2020. The number of SBA guaranteed loans remained steady with a total of 421 loans approvals ($244.9M) this fiscal year compared to 445 ($153.7) last fiscal year. The loans were made through banks, credit unions and certified development companies.

The Agency says 5,867 jobs were created or saved as a result of the loans.

The CARES Act was a major source of the year’s funding.  The agency says both the Paycheck Protection Program (PPP) loan program and COVID-19 Economic Injury Disaster Loan (EIDL) Program loans were made. Nebraska’s banks, credit unions and other lending institutions were quick to close out the Paycheck Protection Program, making over 70K PPP loans totaling over $1.9B.  Nebraskans also heavily utilized the EIDL Program’s increased cap of up to $500k, and subsequent increase to the full $2M. The total number of EIDLs in Nebraska was slightly higher than last year’s total at 15K, but there was a sharp increase in the total amount of funding, which soared to 1.2B (compared to 850M in FY2020). Small business owners may still apply for SBA EIDL-COVID-19 loans through Dec 31st, 2021 or until funds are exhausted using this application: https://covid19relief.sba.gov/#/

The FY2021 CARES Act loan totals for the Nebraska District Office were:

  • Paycheck Protection Program: 70,810 loans for $1,937,788,407
  • SBA COVID-19 EIDL Program: 15,173 loans for $1,237,702,948

The total lending activity for Nebraska in FY21 was 86,465 loans for $2,680,469,062. The Nebraska Economic Development Corporation (NEDCO) provided the most SBA 7(a) loans in Nebraska – 77 loans were made totaling $50,581,000. Coming in second was First State Bank NE with 37 loans totaling $30,226,200. Rounding out the top three was Union Bank and Trust Company with 36 loans totaling $13,647,300.

Here are the top Nebraska 7(a) lenders by loan amount:

NEDCO                                                                                 NE          77           $50,581,000

First State Bank NE                                                          NE          37           $30,226,200

Union Bank and Trust Company                                 NE          36           $13,647,300

Arbor Bank                                                                        NE          20           $11,009,300

Live Oak Banking Company                                          NE          8              $10,807,000

First National Bank of Omaha                                     NE          19           $9,588,500

I3 Bank                                                                                 NE          9              $8,270,400

Millennium Bank                                                              NE          1              $5,000,000

Core Bank                                                                            NE          3              $4,905,000

The Hershey State Bank                                                NE          14           $4,575,000

Byline Bank                                                                         NE          2              $4,162,500

Here are the top 7(a) lenders by number of loans:

NEDCO                                                                                 NE          77           $50,581,000

First State Bank NE                                                          NE          37           $30,226,200

Union Bank and Trust Company                                 NE          36           $13,647,300

Arbor Bank                                                                        NE          20           $11,009,300

First National Bank of Omaha                                     NE          19           $9,588,500

U.S. Bank, National Association                                  NE          15           $2,292,200

The Hershey State Bank                                                NE          14           $4,575,000

Northwest Bank                                                               NE          11           $3,410,700

I3 Bank                                                                                 NE          9              $8,270,400

Midwest Bank                                                                   NE          9              $4,072,500

American National Bank                                                NE          8              $3,153,000

As a federal agency, the SBA guarantees that a certain portion of the small business loan will be repaid if the borrower defaults.  An SBA guaranteed loan offers borrowers the potential for a lower equity injection and longer amortization with interest rates capped by the government.

Lisa Tedesco, Acting District Director for the SBA Nebraska Office, said “through the coordinated effort of our community lenders, trade associations, economic development organizations and SBA’s resource partners, Nebraska’s SBA District Office was able to coordinate the financial resources and provide guidance and education to our Nebraska small businesses. The record small business lending for FY2022 included PPP, EIDL, 7(a) and 504 loans to help keep businesses operating during this unprecedented economic event.”

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