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April 17, 2009 9:00 ET
Small Business Loan Market Revives Despite GAO Report of SBA Delays
Exchanges connecting business borrowers with lenders and lenders with secondary market experience activity spike since Obama initiative
San Diego, CA - April 17, 2009 - Edgeware Analytics, the leading provider of analytics and marketplaces for the small business credit market, has reported a spike in activity since President Obama's March 16, 2009 speech on small business financing. This news comes despite a report by the Government Accountability Office (GAO) released yesterday that the Small Business Administration (SBA) is late in installing new regulations mandated by Congress as part of the $787 billion stimulus package.
The Small Business Loan Exchange (SBLX), the online platform connecting business borrowers with hundreds of SBA and conventional lenders, is the front line for small business funding. Contrasting the 30 days following Obama's speech to the prior 30 days, the exchange experienced an increase of 60% in membership applications from banks. Bank membership applications are a leading indicator of small business lending activity. Other leading indicators also spiked with lender inquiries on available deals up 165%, borrower submissions up 77%, and approval indications up 303%.
GovGex.com, the secondary market exchange connecting SBA and USDA loan originators with loan buyers also reported rapid growth since Obama's March 16th speech, signaling a real awaking of the secondary market. Obama noted just 30 days ago that, "unfortunately, there aren't nearly as many secondary buyers for these kinds of loans - even when they're guaranteed by the Small Business Administration." Since he announced $15 Billion of federal funds to unfreeze the secondary market for SBA loans, GovGex experienced a 132% increase in bids per loan, a 280% increase in lender membership applications and a 365% increase in loan amounts presented for sale.
About Edgeware Analytics
Edgeware Analytics, Inc. provides a comprehensive suite of technology products and services to the small business lending marketplace. The company's Small Business Loan Exchange™, BizLX.com™, utilizes powerful analytics to transparently match a broad array of lending marketplace participants including business borrowers, aggregators such as franchisors and business brokers, lenders, secondary market funding sources, and vendors to small businesses. Elements of the Small Business Loan Exchange include SBLX™ connecting business borrowers with lenders, GovGex.com™ connecting sellers and buyers of government guaranteed loans, and ScoreEdge™ creditworthiness scoring model used by national lenders, certified development companies, credit unions and community banks. Additional information can be found at www.BizLX.com
Media contact:
Mike Rozman
Edgeware Analytics
mrozman@ew-a.com
888-672-6730 |