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"We made it through January 2024, a month that one year ago we may have all viewed some dread. Fears of a recession were widespread, and with good reason.
What many, including myself, may not have expected was just how easy of a landing our economy would find coming out of 2023.
One month into 2024 and businesses are open. There are still jobs. Consumer spending is ramping back up. And with the FOMC's recent decision to hold interest rates steady yet again, we may finally be moving past the fears of the recession that never happened.
So, what does this mean for the SBA landscape? The outlook for small business growth, spending, and financing are promising in light of these indicators.
Windsor Advantage certainly observed the impacts that shaky market confidence had on SBA loan demand over the prior year. We forecasted the LSP to assist our Lenders with closing $350 million in SBA financing prior to the 2023 banking crisis and unexpected rate hikes. Windsor's clients ended the year closing over $275 million in SBA loans, or 78% of our original expectations.
We've experiences a surge in SBA interest during the first forty-five days of 2024, particularly for 'small loans' of $500,000 or less. Our ACCEL small loan team fielded a surge of small loan applications in January with expectations for continued interest. Based on current trajectory, the future looks bright for borrowers, lenders, and the overall SBA landscape.
This outlook should not just reassure lenders that there is major upside for their 7(a) programs this year, but also encourage us all to continue pushing for innovation to keep the SBA products competitive within the financing landscape. The small business world is asking SBA lenders for new technology, streamlined processes, and enhanced borrower experience from pre-qualification to funding to payoff. The SBA has recently embraced this new world. It's up to all of us to provide those features and more as we collectively do our part to strengthen the outlook for SBA lending in 2024. Let's get capital to those who need it most."
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