What does this indicator measure?
This indicator measures the number and dollar value of loan guarantees provided through the Small Business Administration (SBA) loan program in Texas’ major cities—Dallas, Houston, Austin, and San Antonio. The Small Business Administration does not provide loans, but instead makes it easier for small businesses to secure loans from private-sector lenders through loan guarantees. This is similar in concept to the Federal Housing Administration (FHA) loan guarantees for low-income homebuyers. The data for this indicator is collected and maintained by the SBA. In this indicator, the cities refer only to city limits, not the Metro areas.
Why is this indicator important?
Small businesses create jobs and a sense of vitality within a community. Communities without small, growing businesses are often frustrated by a lack of jobs for youth, creating a sense of civic disengagement and hopelessness. A strong small business sector not only fuels economic growth, but their storefronts also create bustle, activity, and a sense of liveliness and hope. The number and dollar value of small business loan guarantees approved in a given city are good indicators of economic growth and job creation, as well as of the overall strength of the neighborhoods. As David A. Sampson, U.S. Deputy Secretary of Commerce, puts it, “Entrepreneurs are the engines of economic vitality and job creation…. We need to increase the number of entrepreneurs and spread the spirit of innovation and enterprise all across our country.” Learn more about the role of small businesses in the SBA’s 2005 Report to the President.
How are we doing?
The number and dollar value of SBA loan guarantees approved has varied during the 4 years from 2003 through 2006 in the four Texas cities studied. All four Texas cities saw a dramatic drop in both number and dollar value of SBA loans approved in 2004, with higher amounts approved in 2003, 2005, and 2006. The number and dollar value of loans decreased by roughly half from 2003 to 2004 and from 2006 to 2007 in Dallas, Houston, Austin and San Antonio.
In Dallas, the number of loan guarantees approved in the 5-year period ranged from 223 to 434, with total dollar values ranging from $50 billion to more than $107 billion. Despite an increase of 33 approvals from 2005 to 2006, the dollar value remained nearly constant, while other cities posted sizeable gains both in the number and dollar value of the loans approved from 2005 to 2006.
Houston repeatedly had the highest number and dollar value of loans approved out of the four cities, consistent with Houston’s large population.
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Small Business Administration Loan Guarantees Approved
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|
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2004
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2005
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2006
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#
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$
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#
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$
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#
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$
|
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Dallas
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223
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$50,415,800
|
401
|
$107,489,900
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434
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$107,885,682
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Houston
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525
|
$82,333,300
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919
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$152,976,146
|
966
|
$179,058,066
|
|
Austin
|
130
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$25,002,300
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258
|
$49,074,687
|
272
|
$56,939,532
|
|
San Antonio
|
125
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$28,830,190
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273
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$49,946,156
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318
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$64,549,300
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In the Dallas area, there are seven SBA Small Business Development Centers (SBDC) where new and existing entrepreneurs can get assistance with preparing business plans and applying for funding. SBDCs also offer workshops, seminars, and other educational materials and courses of interest to small business owners and entrepreneurs. The SBDCs are located at:
Dallas
1402 Corinth Street
Dallas, TX 75215
214-860-5865
Dallas
1950 Stemmons Fwy, Suite 5067
Dallas, TX 75207
214-747-1330
Cedar Hill
207 N. Cannady Dr., Bldg A115
Cedar Hill, TX 75104
972-860-7894
Plano
4800 Preston Park Blvd, Suite A126/Box 15
Plano, TX 75-93
972-985-3770
Denton
414 Parkway
Denton, TX 76201
940-380-1849
Fort Worth
James E. Guinn School Complex
1150 S. Freeway (I-35 @ Rosedale)
Fort Worth, TX 76104
817-871-6028
Fort Worth
7300 S. Jack Newell Blvd.
Fort Worth, TX 76118
817-272-5930
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