According to a new report by PayNet, small business lending was at an all-time high in May. Texas and North Carolina led the growth by an increase of 12.9 percent and 12.3 percent year-over-year, respectively.
The Small Business Lending Index, an index that measures the volume of loans to small businesses, is up more than 10 percent from last year.
The trend is also apparent in the Triangle, according to the U.S. Small Business Administration’s North Carolina Lender Ranking. The list ranked active North Carolina 7(a) lenders from Oct. 1, 2017, to May 31.
The top 10 active 7a Lenders in North Carolina together loaned a gross total of $182,143,700. Wells Fargo, the largest bank in the Triangle, approved 96 small business loans in North Carolina during the year, according to the report. And many of the Triangle’s largest banks made the top 20 lenders, with PacWest, Bank of America and Paragon Commercial Bank falling behind.
Top 10 Active 7a Lenders in North Carolina (by number of approvals from 10/1/17-5/31/18)
Source: U.S. Small Business Administration
In total, North Carolina banks inked 793 small business 7(a) loans, worth gross $482,189,500. Add in 504 Loans and that total rises to 835 loans worth $521,157,500.
High instances of small business loan approval could be leading to increased confidence in small business owners. First Citizens Bank’s Small Business Forecast shows that U.S. small-business owners are positive about 2018.
Seventy-five percent of respondents believed their businesses would grow or expand in 2018, with millennial business owners being the most confident. The majority of respondents expected benefits from the 2018 tax reforms, and noted talent acquisition as a concern.
Overall, the majority of respondents also expressed concern about the long-term prospects of the economy, with confidence about the economy in the next two to three years down by 8 percent.