Job Creation, Retention Increases Among KC-Area SBA Borrowers

Job Creation, Retention Increases Among KC-Area SBA Borrowers


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Local Small Business Financing Totals $347.7 million

Area borrowers from two guaranteed loan programs of the U.S. Small Business Administration reported creation of nearly 4,000 new jobs and retention of more than 8,000 jobs in fiscal year 2017.

In the federal fiscal year that ended Sept. 30, the SBA Kansas City District and Springfield Branch offices supported $347.7 million in loans through the SBA’s two largest programs, 7(a) and 504 loans.

Here’s a look at the numbers from FY 2017:

  • 851 loans approved
  • 3,947 jobs created
  • 8,106 jobs retained
  • 22 percent increase in 504 loan program borrowers
  • 7 percent decrease in 7(a) loans approved

The SBA’s 504 loan program funds long-term capital assets; 7(a) loans are the most common type of financing offered by the SBA. Both programs work through approved lenders. In the Kansas City-Springfield region, 137 lenders tapped the guaranteed loan programs in the last fiscal year.

The chart on page 30 lists the top lenders in the Kansas City District by number of SBA loans. Rural Missouri Inc., based in Jefferson City, made 34 loans and had the highest value of loans at $24.5 million. It is the only bank on the list with more than $20 million in SBA loans for the past fiscal year.

In FY 2017, 23 percent of SBA loans went to businesses in areas designated as rural. Women represented 39 percent of SBA-backed borrowers, and loans to area startup businesses increased to 45 percent of all SBA-backed loans made.

Here’s a breakdown by industries receiving SBA-backed loans:

Retail // 12 percent

Accommodations and food service // 12 percent

Miscellaneous services // 11 percent

Professional and scientific services // 10 percent

Construction // 9 percent

Manufacturing // 9 percent

For more information about these and other SBA programs, visit the Kansas City SBA website at www.sba.gov/mo. Contact the Kansas City District Office at 816-426-4900 or email KansasCity_do@sba.gov.

Katie Bean

Written by

Katie Bean is executive vice president at Thinking Bigger Business Media Inc. She directs editorial content for the magazine and website. Contact her at kbean@ithinkbigger.com.

Categories: Banking

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