Phil Castle, The Business Times

A federal agency backed more than $24 million in small business lending in Mesa County during 2022 fiscal year.

The latest numbers were lower in Mesa County and statewide in 2022 than in a record-setting 2021. But they still constitute what Frances Padilla, Colorado director of the U.S. Small Business Administration, called a pleasant surprise that reflected continued recovery from the COVID-19 pandemic.

Since nearly all businesses in Colorado are considered small businesses and collectively employ almost half the private workforce, access to financing remains an important economic driver, Padilla said.

“Colorado’s economy continues to rebound from the impact of the pandemic, and the SBA’s small business lending programs remain a critical economic development driver for job creation statewide,” she said.

According to the Colorado District Office of the SBA, 28 loans worth a total of nearly $24.4 million were issued in Mesa County during the 2022 fiscal year ending Sept. 30.

Nineteen loans worth a total of almost $19.8 million were issued under the SBA 7(a) general guarantee program offering financing for equipment, land and working capital. Another nine loans worth a total of more than $4.6 million were issued under the 504 program for acquiring buildings, land, equipment and other fixed assets.

The SBA doesn’t make direct loans through its 7(a) and 504 programs. By guaranteeing repayment of a portion of the loans, however, the agency enables lenders to extend financing to businesses that might not qualify under conventional terms — to turn a no into a yes, Padilla said.

In Mesa County, SBA lending for the 2022 fiscal year lagged behind the 35 loans worth a total of $33.8 million issued in 2021. Still, 2022 lending levels topped the pre-pandemic numbers for 2019, when 29 loans worth a total of almost $17 million were issued.

Readycap lending ranked among the top 7 (a) lenders in Mesa County during the 2022 fiscal year with two loans worth a total of more than $6.5 million. B-Side Capital was the top 504 lender with eight loans worth a total of almost $3.5 million.

Statewide, 1,527 loans worth a total of nearly $990 million were issued during the 2022 fiscal year.

Most loans — 1,128 worth a total of more than $770 million — were issued through the 7(a) program. Another 233 loans worth a combined $217 million were issued through the 504 program, and 166 microloans less than $50,000 each were issued with a total value of $2.4 million.

In 2021, 1,965 loans worth a total of nearly $1.4 billion were issued, the largest dollar volume ever processed by the Colorado SBA office.

Nationally, the SBA backed more than 62,000 loans worth a collective $43 billion during the 2022 fiscal year.

SBA Administrator Isabella Guzman praised the effort. “While still managing billions in COVID relief, the SBA also delivered record lending in FY 22, helping tens of thousands of entrepreneurs across our nation get the needed funding to start, grow and build resilient businesses.”

Padilla said Colorado has recovered faster than othr areas of the United States. The pandemic and related restrictions forced many small businesses to pivot and adapt operations to changing circumstances — selling online, for example. But that positioned them for continued success.

In addition, many individuals evaluated their circumstances and decided to launch their own businesses, she said.

For the 2023 fiscal year, the SBA will continue to charge no fees on 7(a) loans up to $500,000.

In addition to access to financing, Padilla said the SBA and its partners — including the Small Business Development Center in Grand Junction — offer counseling, technical assistance and other resources to businesses and entrepreneurs.

Businesses face challenges with supply chain issues and higher interest rates, but Padilla said she remains optimistic.

For more information about SBA programs and services, log on to www.sba.gov. For information about a service connecting businesses with lenders, visit www.sba.gov/lendermatch.