Small businesses in the Kansas City and Springfield region were able to secure $395.6 million in SBA-backed loans during FY 2016—a 16 percent increase in the amount of money borrowed.
The U.S. Small Business Administration calculates that more than 3,800 jobs were created as a result of the loans and another 7,000 were sustained. Nearly 900 loans were approved.
The SBA doesn’t actually lend money directly to small businesses in most cases. (Disaster loans are the exception.) Rather, the agency promises to help pay off a loan if an approved borrower defaults. That guarantee gives lenders the confidence to work with small companies they might not otherwise.
“The lending community understands the importance of SBA loan programs as an alternative to traditional financing,” said Jon Malcolm Richards, director of the SBA’s Kansas City District. “And it is through the dedication and commitment of our lenders to the business community that SBA had a resoundingly successful year.”
Based on the number of SBA loans approved, U.S. Bank had more than any lender in the region, 96, followed by Alterra Bank with 57, Simmons First National Bank with 52, Arvest Bank with 47 and The Bank of Missouri with 38.
If you look at how much those loans were worth, Alterra led with a dollar volume of $39.4 million, followed by Live Oak Bank with $30 million, U.S. Bank with $22.3 million, OakStar Bank with $21.8 million and Simmons Bank with $21.6 million.
About half of the region’s SBA loans were for amounts of $150,000 or less, comparable to demand from last year. The SBA has done away with up-front borrower fees for these smaller 7(a) loans, which has helped spur demand.
The SBA reported stronger demand for loans to small businesses in accommodations and food service (an increase of 15 percent); retail trade (up 14.8 percent); construction (up 10 percent); health care and social services (9 percent); and other services (up 8 percent).
Interested in learning more about SBA-backed loans? Contact the agency’s Kansas City District Office at (816) 426-4900 or kansasCity_do@sba.gov.
TOP 25 LENDERS FOR FISCAL YEAR ENDING SEPT. 30, 2016
FOR LOANS IN THE KANSAS CITY DISTRICT OFFICE
(Listed by Number of SBA Loans Made)
| Lender Name | FY 16 Loan Number |
FY 16 Loan Dollars |
||
| U.S. Bank N.A. | 96 | $22,265,800 | ||
| Alterra Bank | 57 | $39,368,400 | ||
| Simmons Bank | 52 | $21,613,300 | ||
| Arvest Bank | 47 | $5,601,700 | ||
| The Bank of Missouri | 38 | $7,048,800 | ||
| OakStar Bank | 34 | $21,782,600 | ||
| Guaranty Bank | 30 | $17,882,700 | ||
| CrossFirst Bank | 28 | $19,396,500 | ||
| Rural Missouri, Inc. | 28 | $16,261,000 | ||
| Wells Fargo Bank, N.A. | 24 | $11,017,200 | ||
| UMB Bank, N.A. | 21 | $6,933,000 | ||
| Celtic Bank Corporation | 20 | $4,250,000 | ||
| Live Oak Banking Co. | 19 | $30,045,000 | ||
| Commerce Bank | 19 | $2,001,000 | ||
| Capital City Bank | 17 | $5,229,500 | ||
| Bank of the Prairie | 16 | $14,350,000 | ||
| Heartland Business Capital Inc. | 13 | $4,398,000 | ||
| Central Bank of the Midwest | 12 | $6,704,900 | ||
| Hawthorn Bank | 12 | $3,093,900 | ||
| Heritage Bank of the Ozarks | 12 | $1,047,500 | ||
| Morrill & Janes Bank & Trust Co. | 10 | $4,038,500 | ||
| Missouri Bank and Trust Co. of Kansas City | 10 | $3,182,700 | ||
| Country Club Bank | 10 | $1,816,900 | ||
| Summit Bank of Kansas City | 9 | $9,362,800 | ||
| The Bank of Urbana | 9 | $651,600 |
