A key barometer of small business lending showed improvement in June.
The number of Small Business Administration 7(a) loans originated by lenders in the Buffalo-Rochester region increased 25 percent from a year ago, to 89, the SBA said. Under the program, the SBA provides government guarantees of 75 to 85 percent on loans made by private lenders to small businesses, as a means of encouraging banks to make more such loans.
M&T accounted for 23 of the loans in June, followed by Five Star Bank’s 16 loans.
Combined loan volume increased 30 percent in June from a year ago, to $14 million. M&T led with about $2.7 million in volume for the month,
The SBA tracks its totals based on the federal fiscal year, which began last October. Through the first nine months of the fiscal year, total loans were up 16.6 percent from a year ago, to 605; M&T accounted for about 29 percent of them. Combined loan volume was up 20.2 percent, to $104.6 million. M&T led that category, followed by First Niagara Financial Group.