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Nov 01 2019

FY 2019 Update - U.S. Small Business Administration, Kansas City District Office


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Kansas City District Office  - October 2019

u s small business administration

SBA Loans FY 2019 – $333 Million

SBA

The U.S. Small Business Administration (SBA) - Kansas City District Office (KCDO) has announced the agency’s loan approval activity in 28 counties in Eastern Kansas and 61 counties in Western Missouri for Fiscal Year 2019.

The SBA approved 726 guaranteed loans in KCDO market totaling $333,146,158 in FY 2019 (10/01/2018 – 09/30/2019). The totals for FY 2019 include 674 loans for $288,306,158 under the agency’s largest loan program, the 7(a) general business loan program, and 52 loans for $44,840,000 under the 504-loan program.

The FY 2019 totals compare to 776 loans totaling $363,153,291 in lending to small businesses in FY 2018.

U.S. Bank was the top SBA 7(a) lender and top lender overall in KCDO market based on loan count, approving 74 7(a) loans for $6,046,000. The 7(a) program is SBA’s flagship loan program and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used by small businesses for a wide variety of financing needs including acquiring land, purchasing equipment, or working capital.

Rural Missouri Inc., was the top SBA 504 lender, approving 28 504-loans for $26,313,000. SBA’s 504 loan program helps provides capital to small businesses for the acquisition of fixed assets to promote economic development via long-term fixed-rate financing on reasonable terms. Under this program, the SBA authorizes Certified Development Companies (CDCs) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is $5 million; however, certain energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each. 

“The KCDO continues to lead the region (KS, IA, MO, NE) in loan production because of the dedication and commitment of our lenders and our District Office Staffs. Given the strength of the economy, banks are now more comfortable making conventional loans without the SBA loan guarantee. FY 2019 loan data from SBA’s flagship 7(a) program shows increased confidence among lenders offering conventional loans.” said the SBA Kansas City District Director, Jon Malcolm Richards.

SBA KCDO Top 15 Lenders by Loan Count – FY 2019

Bank Name

Loan Count

 Total Loan Amount

U.S. Bank, National Association

74

 $                        6,046,000

OakStar Bank

55

 $                      25,567,400

Guaranty Bank

46

 $                      12,614,900

Core Bank

31

 $                      14,080,500

Rural Missouri, Inc.

28

 $                      26,313,000

Simmons Bank

28

 $                        8,173,500

Arvest Bank

19

 $                        3,621,300

Small Business Bank

19

 $                        2,505,700

Landmark National Bank

18

 $                      12,025,400

Wells Fargo Bank, National Association

18

 $                      12,364,100

The Bank of Missouri

17

 $                        4,095,900

Newtek Small Business Finance, Inc.

16

 $                      11,741,000

UMB Bank, National Association

15

 $                        3,324,700

Bank of the Prairie

14

 $                        6,101,500

United Midwest Savings Bank, National Assoc

14

 $                        2,360,000

 

Federal Contracting Dollars for Small Businesses FY 2019 - $861 Million

The U.S. Small Business Administration (SBA) - Kansas City District Office secured $861,200,176 federal contracting dollars for Kansas and Missouri small businesses from October 1, 2018, to September 30, 2019, the U.S. federal government’s fiscal year (FY). This is an increase of $473,873,639 or 122 percent compared to FY 2018 when it secured $387,326,536 federal contracting dollars for Kansas and Missouri small businesses.

“It is an exciting time for the 8(a) small business development program in Kansas and Missouri” said Kansas City Deputy District Director, Dennis Larkin. “The average size of the small business federal contracting offer letter is $9,463,738 which is an increase of $5,843,864 over FY 2018. Our 44 each 8(a) firms received offer letters in 43 cities outside the four-state region (KS, MO, IA, and NE). Eight 8(a) firms received offer letters in FY 2019 that did not in FY 2018. Three 8(a) firms in their first year received their first contract.” The goal of the SBA 8(a) Business Development Program is “to promote the business development of small business concerns owned and controlled by socially and economically disadvantaged individuals…”  The $861 million federal contracting offers received by Kansas and Missouri small businesses helped support roughly 8,716 jobs.

Top 10 8(a) firms – Total Dollars

  1. Medvolt
  2. Firelake Construction
  3. Primetech International
  4. Vazquez Contracting
  5. Tukuh Technologies
  6. Tehama
  7. Snodgrass
  8. Tom & Jerry
  9. D&S International
  10. Veracity

Top 10 8(a) firms – # of Offer Letters

  1. Firelake Construction
  2. Medvolt
  3. Vazquez Contracting
  4. Matai Services
  5. Tom & Jerry
  6. HJM Architects
  7. Freedom Interior
  8. Snodgrass
  9. D&S International
  10. Better by Design

Click Here to Learn More!

 

2020 National Small Business Week Award Nominations is Now Open!

The U.S. Small Business Administration is now accepting nominations for its 2020 National Small Business Week Awards, including the annual Small Business Person of the Year. For more than 50 years, National Small Business Week has celebrated the inspiring achievements of America’s small businesses and the countless contributions they make to their local communities, and to our nation’s economy.

“We are proud to recognize the small business owners that have made it their mission to support their communities and drive the entrepreneurial spirit forward,” SBA Acting Administrator Chris Pilkerton said. “A National Small Business Week award is one of the nation’s highest honors for small business achievement. Please take a moment to visit sba.gov/nsbw to nominate a deserving small business owner in your area. I wish all of our nation’s small businesses the best of luck and look forward to their nomination.” Small businesses can self-nominate! Please click here to learn more about the SBA Awards given in celebration of National Small Business Week from May 3-9, 2020.

 

We Want to Hear From You!

Do you have three minutes? Take SBA’s Customer Experience Feedback Survey to help us better serve you. Your feedback is valuable and will help us better determine how we can improve our services. This survey is intended for current and prospective small business owners who have interacted with an SBA office. All responses are anonymous. Thank you in advance for your time.

Launch the survey

Upcoming Small Business Training Events

Veteran Small Business Events:

In celebration of the National Veterans Small Business Week (November 4-8, 2019), the U.S. Small Business Administration (SBA) Kansas City District office and Springfield, MO Branch Office in collaboration with local resource partners are hosting veteran events in Gladstone, MO and Springfield, MO.

If you are a veteran or a spouse of a veteran interested in starting or growing a business, these are MUST attend events!

Attendees will learn about various programs and assistance that are available to veterans and their spouses through the SBA and its resource partners. Entrepreneurial Development, Access to Capital, Government Contracting, Small Business Certifications, and Disaster Recovery are among the topics that will be discussed.

Click on the town names to learn more!

Gladstone, MO

Springfield, MO

Veteran Business Session

SBA Lender Updates

SBA Lender

The SBA is operating under Continuing Resolution (CR) budget until November 21, 2019.  KCDO is reminding lenders that under the current CR there is no fee relief on the guaranty. Existing loans that received fee relief and requiring an increase to the loan amount should follow the rules for increasing the loan that were in place when the loan was approved, BUT the Guaranty fee is based on current fee structure.

Guaranty Purchase Tab changes COMING SOON:

The Office of Financial Program Operations is committed to process improvements and improving the customer experience for its lending partners. The National Guaranty Purchase Center and the Commercial Loan Service Centers, use the Guaranty Purchase Tabs to facilitate the submission of guaranty purchase requests.  Recently the NGPC reviewed the Tabs to identify opportunities to improve the process and ensure that necessary documentation is received so that a decision to honor the guaranty can be arrived at quicker and with fewer requests for additional information.  The following will detail some of the changes the Center made by Tab numbers.

Tab 2 - Added the requirement to provide the credit memo for all loans, also to provide the Credit Elsewhere analysis.

Tab 3 - Added the reminder of the requirement to provide the Addendum to the Franchise Agreement for loans approved on or after 01/01/17, if required by the SOP.  3.2 - Added the reminder of the requirement for delegated lenders to provide the CAIVRS report on all loans approved on or after 10/01/12.

Tab 4 - Added the requirement for Lenders to provide the death certificate when a Borrower or Guarantor is deceased. 4.2 - Added reminder to include all contracts, exhibits, agreements, etc., associated with the purchase/sale of the business when there is a change of ownership.

Tab 5 - Added clarification of what is required when loan proceeds are used for debt refinance. Lender need to provide the Debt Schedule and provide copies of original notes and payoff statements, as required by the SOP in effect at origination.

Tab 7 - Updated the definition of Early Default to match the December 2015 definition and added clarification about the difference between evidence of equity injection and evidence of source of the equity injection.  7.2 - Added the need to include documentation to support the source of equity injection, when required per the SOP in effect at loan origination.  Added clarification as to what is required to support Lender’s repayment analysis.

Tab 9 - Added a reminder to the Lenders that if a loan is not ready for charge off at the time of guaranty purchase, the Lender must send a wrap up report within 30 days of completion of collection activities.  Also added clarification to ensure that the review and payment of expenses are addressed properly at the time of guaranty purchase.

Tab 10 - Added a concurrence requirement for the Lenders to assert whether additional expenses need to be considered and a reminder of the times at which SBA will consider paying them, and a reminder of how to apply recoveries.

SBA Springfield Branch Office Moved to a New Location!

New Address:

Hammons Tower

901 East St. Louis Street, Suite 704

Springfield, MO 65806

Phone (417) 413-5793

Fax (417) 889-0074

SBA Kansas City District Office Directory

Jon Malcolm Richards, District Director, (816) 426-4903

Dennis Larkin, Deputy District Director, (816) 426-4914

Mike McWhorter, Lead Lender Relations Specialist, (816) 426-4916

Carolina Vargas, Lender Relations Specialist, (816) 426-4913

Ken Surmeier, Business Opportunity Specialist, (816) 426-4919

Ram Basnet, Branch Manager/PIO – Springfield Branch, (417) 889-6912

Lisa Zimmerman, Lender Relations Specialist – Springfield Branch, (417) 413-5793