"Because we are in the fortunate position of being able to make loans, we are just seeing a flood of applications," said Brian Carlson, chief executive of the small bank.
SBA loans in the pipeline have almost tripled to $230 million, said Carlson, who has added 20 employees to handle the volume. About 75% of those loan requests will receive funding, the usual ratio even though credit standards are tighter, he said.
That's not the case at many other local SBA lenders.
As the secondary market for the government-backed loans has cooled, the number of loans made in the SBA's Los Angeles district, which includes Los Angeles, Ventura and Santa Barbara counties, dropped about 30% to 3,181 for the nine months ended June 30, the latest numbers available. District Director Alberto Alvarado expects a similar drop for the full fiscal year ended Sept. 30.
Check the SBA website, at www.sba.gov, for fees and interest rates for individual loan types, including those targeted at military veterans.
Despite a reputation for ponderous paperwork, the SBA loan process was so easy that Aristi Contos was suspicious at first. However, the new restaurant project is on hold for now because of the poor economy, Contos said, although she hopes to break ground next summer.
"We want to get off on the right foot," said Contos, who has helped manage the family's restaurants since she was in high school.
Micro loans. Several Southern California nonprofits offer small loans for small businesses or individuals who want to start a new business. Some of these also are backed by the federal government, such as the SBA micro loan, which offers borrowers up to $35,000.
The Valley Economic Development Center, www.vedc.org, is one source for that loan. The VEDC also manages a number of other loan funds, including one for revolving loans from $25,000 to $700,0000.
The Jewish Free Loan Assn., www.jfla.org, manages five little-known micro-enterprise funds. The Los Angeles group, part of an international network of interest-free loan agencies, got its start in 1904. It makes interest-free loans for as much as $15,000 for start-ups or existing small businesses.
Organizations such as SCORE, www.score.org; the Assn. of Women's Business Centers, www.awbc.biz; and small-business development centers, www.asbdc-us.org, are sources to learn more about financing your small business.
