News Summary
U.S. Bank reported a slight decline in SBA loans in Orange County for the fiscal year ending September 30, 2024, totaling $20.4 million. Despite this, the number of loans increased by 25%, indicating strong demand. Notable clients include Chaupain Bakery and JFK Transportation. U.S. Bank’s lending chief emphasizes the resilience of small businesses in the region. The SBA also announced disaster loans for businesses affected by recent wildfires, showcasing both the challenges and opportunities in the lending landscape.
Orange County – U.S. Bank has reported a slight decline in the total value of Small Business Administration (SBA) loans arranged in Orange County for the fiscal year ending September 30, 2024. The bank arranged $20.4 million in SBA loans, a decrease from the previous year’s total but sufficient to secure the bank’s position as the sixth largest SBA lender in the region.
Despite the decrease in dollar value, the overall landscape for SBA lending in Orange County has seen a 25 percent increase in the number of loans compared to the previous year. This indicates a growing demand for SBA loans, with the total dollar value in the region reaching $265.3 million, a nearly 9 percent decline year-on-year.
Among U.S. Bank’s notable clients in Orange County are Chaupain Bakery of Laguna Hills and JFK Transportation of Santa Ana. Chaupain Bakery has received multiple loans from U.S. Bank, which have been instrumental in financing equipment purchases and the opening of its new retail locations, including its fourth site in Laguna Niguel. JFK Transportation received an SBA loan in 2020, supplemented with additional funding to support operations during the pandemic and facilitate the financing of new corporate offices.
Catherine Jooyan, U.S. Bank’s lending chief for SBA loans in California, emphasized the robust presence of small businesses across various sectors in Orange County, notably industrial manufacturing and retail. The bank has noted significant activity from companies located in key areas such as Anaheim, Orange, Huntington Beach, and Irvine Spectrum.
In the first quarter of this fiscal year, U.S. Bank is tracking ahead of its previous year’s performance, indicating a strong start and optimism for growth in 2025. Jooyan mentioned that approximately 60 percent to 70 percent of SBA loans arranged by U.S. Bank were for building acquisitions or refinancing, while the rest centered on business acquisitions or partner buyouts.
Jooyan has also pointed out the necessity of assisting clients amidst market volatility, which is currently influenced by tariff policies and fluctuations in the stock exchange. Expressing optimism, she remarked on the positive changes anticipated under Kelly Loeffler, the newly appointed SBA administrator, which is expected to bolster the SBA program and enhance client interest.
In the competitive landscape of SBA lending, Business Finance Capital of Los Angeles emerged as the leading lender, arranging 30 loans with a 15 percent increase in dollar amounts to nearly $50 million. TMC Financing claimed the third position but experienced a nearly 12 percent drop in loan value while maintaining its influence in the lending market. Meanwhile, Commercial Bank of California reported a striking 683 percent increase in SBA loan amounts year-over-year, showcasing a shift toward national expansion beyond local markets.
In light of recent developments, the SBA has announced the availability of disaster loans for Southern California businesses adversely affected by wildfires, following a major disaster declaration from President Biden. Homeowners can apply for disaster remediation loans up to $500,000, while businesses can seek loans of up to $2 million for the repair or replacement of assets and to assist with working capital needs.
This evolving landscape showcases both the challenges and opportunities within the SBA lending space in Orange County, with lenders poised for future growth despite current fluctuations in loan values.
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Additional Resources
- Orange County Business Journal – SBA Lenders Loan Volume Up 25%, Value Dipped
- Wikipedia: Small Business Administration
- Orange County Business Journal – U.S. Bank Helps OC Small Businesses
- Google Search: SBA loans
- Downey Patriot – SBA Offers Low-Interest Loans to Wildfire Victims
- Google Scholar: Small Business Lending
- OC Register – Small Business Lending Picks Up
- Encyclopedia Britannica: SBA Loans
- KYMA – Counties Receiving the Most SBA Loans in California
- Google News: Disaster Loans
