MODESTO — Stanislaus County business owners landed fewer loans backed by the U.S. Small Business Administration this year compared with past years, but Merced, San Joaquin and Tuolumne counties got more.
The SBA guaranteed only 26 loans worth $17.5million in Stanislaus during the 2014 fiscal year, which ended Sept. 30. By comparison, 57 Stanislaus businesses last year got loans worth $22.8million, and 46 businesses two years ago got loans worth $34.3million, according to the SBA.
The biggest loan guarantees in Stanislaus went to hotels, which is common for the SBA in this region. They included a $2.87million loan guarantee for the Comfort Inn in Modesto and a $2.64million loan guarantee for Modesto’s Park Inn by Radisson, which is owned by American Traders Inc.
Merced received more loan guarantees and more money than Stanislaus, even though it has less than half as many residents. Merced businesses landed 29 loans worth $21.4million this year. That was up from $14.9million last year and $7.6million the year before.
The biggest loan guarantee in Merced this year was nearly $3.37million for the Best Western Anderson’s Inn in Gustine.
San Joaquin County businesses received more than $55million in loan guarantees from the SBA this year, and Tuolumne County received $7.3million.
“There is still work to do,” said Carlos Mendoza, the director of the SBA’s Fresno District. He said there are “continuing challenges when it comes to getting loans in these difficult times, and that’s why it is important that SBA continues to work together with our lenders to facilitate lending to small businesses.”
The SBA offers various types of loan guarantees for businesses, such as those for companies that want to buy equipment, expand operations or refinance debt. It also offers loans that provide long-term, fixed-rate financing to acquire land, buildings and other major fixed assets.
Rather than lending directly to small businesses, the SBA works through banks. The agency then guarantees that those loans will be repaid.
“These loans demonstrate our continuing partnership with local lenders and collaboration with our vast business-development network in meeting the unique financing needs of small businesses in all parts of our jurisdiction,” Mendoza said.
More information about loans is provided at SBA.gov.
Bee staff writer J.N. Sbranti can be reached at firstname.lastname@example.org or (209) 578-2196.