SALT LAKE CITY, Oct. 23, 2015 /PRNewswire/ -- More Idaho and Utah entrepreneurs are borrowing money to
start and grow their businesses, according to the most recent
fiscal year-end data from the U.S. Small Business Administration
(SBA).
The number of approved SBA 7(a) loans, the most common type of
financing offered by the SBA, increased 13 percent in the
administration's Utah District and
57 percent in the Boise District
during the fiscal year that ended Sept. 30,
2015.
During the same period, the number of these loans approved by
Zions Bank increased at a faster rate than the market, at 29
percent in Utah and 71 percent in
Southern and Eastern Idaho. The
capital provided through Zions Bank's loans to Idaho and Utah businesses allowed them to grow, which
resulted in nearly 5,000 new and retained employees, according to
SBA data.
"A year ago, we saw more businesses running lean and keeping
cash on their balance sheets. Recently, we are seeing more
small business loan demand and the applicants are better qualified
today," said Cece Mitchell, senior
vice president and Small Business Group division manager at Zions
Bancorporation. "The average size of the loans we're making to
small businesses demonstrates we're meeting their appetite for
modest leverage while still allowing them to grow and hire new
employees."
For the past 22 consecutive years, Zions Bank has ranked as the
top provider of 7(a) loans in Utah. Zions Bank approved loans
totaling more than $72.1 million and
representing 28 percent of the SBA-backed loans approved in the
Utah District in 2015.
In Idaho's Boise District, Zions Bank has been the top
SBA 7(a) lender for the past 14 consecutive years, having approved
loans totaling more than $15.9
million and comprising 23 percent of the district's loans in
2015. In Northern Idaho, Zions
Bank also approved loans in the SBA's Seattle/Spokane District totaling more than
$5.8 million.
"Utah's job growth is the highest in the country, and
Idaho's employment is also among
the fastest growing in the U.S.," notes Robert Spendlove, senior vice president and
Zions Bank economic and public policy officer. "Zions Bank is proud
that the SBA loans we made in 2015 are helping businesses create
jobs that provide a foundation for economic growth and are
essential to the long-term health of our communities."
Another factor driving loan growth is the SBA's waiver of
guarantee fees on 7(a) loans of $150,000 or less, implemented in 2013 and
continuing through the 2016 fiscal year. With the average
7(a) loan made by Zions hovering less than $203,000, many entrepreneurs are taking advantage
of this perk. On a loan of $150,000, the 2 percent fee waived by the SBA
could translate to two employees' salaries for one month.
The SBA's 7(a) program offers up to 25-year, fully amortized
loans that may be used for most business purposes, including the
purchase of real estate for business operations, acquisition of
equipment, and working capital.
Zions Bank, a subsidiary of Zions Bancorporation (NASDAQ: ZION),
operates 124 full-service financial centers throughout Utah and Idaho. In addition to offering a wide range of
traditional banking services, Zions Bank is also a leader in small
business lending and has consistently ranked as the No. 1 lender of
U.S. Small Business Administration 7(a) loans in Utah for the past 22 years and Idaho's Boise
District for the past 14 years. Founded in 1873, Zions Bank has
been serving the communities of the Intermountain West for more
than 140 years. Additional information is available at
www.zionsbank.com.
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SOURCE Zions Bancorporation