This blog previously mentioned the ways Linda McMahon, former WWE co-founder and new head of the Small Business Administration, was set to approach her new role, but there are still some questions remaining. Although McMahon has expressed commitment to the role, there's also a sense that the SBA could function differently under its latest leadership.
Forbes recently examined McMahon's possible financial policies in depth, based on comments made during her initial Senate confirmation hearing. Among these was a series of rhetorical questions from McMahon on the effectiveness of the SBA's loans for small businesses, as well as a possible indication of more support for minority business owners.
"I want to make sure we are serving more and more minority small-business owners, our veterans, our Native Americans," she said. "But I need to know, first of all, are the loans we are making effective."
The source said that McMahon has previously expressed negative opinions about the work the SBA does through its small-business loans, which could signal a sort of conflict, or perhaps a change of heart, depending on what happens as her tenure begins.
"The amount of money loaned through the 7(a) program has increased in total over the past four years."
As of this writing, the SBA's most recent weekly lending report available on its website was for the week of Jan. 27, 2017. Per this data, the amount of money loaned through the 7(a) program has increased in total over the past four years, growing from $4.9 billion in 3014 to something near $7.6 billion as of this year.
Of this sum, minority lending accounted for 29 percent from 2014 to 2016. By comparison, 2017 is already listed as having a slightly higher percentage of its total lending devoted to minorities (a 3 percent increase, to be exact).
The businesses at least 50 percent owned by women grew by 1 percent in the 2017 figure, to 15 percent. While the number of businesses where female ownership accounted for 50 percent or less was also 15 percent of the entire 2017 sum, this actually represented a 1 percent decrease from 2016.
Planning for future changes
Despite somewhat mixed signals from McMahon, businesses may be able to take some comfort in the areas of increase seen in the statistics above. With this in mind, it can be useful to still consider the SBA 504 loan for either new expenses or refinancing.
As our guide shows, the refinancing program of the 504 allows businesses to address multiple loans at once, combining them in a single attempt to reassess them. Operating expenses could also be eligible, depending on whether or not the applicant has qualified debt.
If you think you meet all the requirements for the 504 program, or simply want to know how to get SBA loan approval, contact Growth Capital today.