The Houston District Office of the U.S. Small Business Administration (SBA) administers more than 300 Houston SBA lenders that make Houston SBA loans in the Houston metropolitan market. The SBA today released small business lending results showing a continuing upward trend in the availability of capital for small businesses, and growth in important categories of veterans and emerging communities.

 

Hurricane Harvey negatively affected the final 6 weeks of the year by about $70 million, which is historically the highest volume time for SBA lending. Trends and forecasts showed the year ending at nearly $1billion in total lending, but the final total was instead 1,616 loans valued at $929 million.  “When we take into account the ‘Harvey-affect’, the small business capital market in Houston showed a persistent year-on-year increase in dollars available for small business growth and start-up.” said District Director Tim Jeffcoat.

 

An average of 6.2 loans were made every business day, with 46% going to startup businesses and 33% going to businesses with women ownership.  While the overall average loan grew to $575 thousand, over 29% of all loans are still under $50 thousand.  Loans occur most often in Harris County, followed by Ft. Bend, Brazoria, and Montgomery counties. In the 22nd Congressional District, Congressman Pete Olson’s district, there were 265 new loans which made for $173 million in SBA guaranteed lending, the largest of any congressional district in Texas.

 

Great strides continue to be made in increased lending to African-American, Hispanic, Native-American and Asian-American small business owners, who received $2.4 billion dollars in SBA guaranteed loans over the last 5 years; a composite growth of almost 49%. The average size of loans increased in all of these groups, while the loan size for Asian American businesses is the highest at $906K.  SBA Houston also saw lending for veterans increase; 15.3% in dollars and 7.3% in units.

 

Industry trends had some notable changes from 2016 to 2017 with the Hotel/Restaurant category up $32 million and Construction up $18 million. The top 10 industries in the SBA Houston District were:

 

Top 10 Industries by Dollar Amount

1. Accommodation and Food Services – $217 million

2. Health Care & Social Assistance – $160 million

3. Retail Trade – $123 million

4. Other Services (except Public Administration) – $73 million

5. Professional, Scientific & Technical Services – $64 million

6. Manufacturing – $56 million

7. Wholesale Trade – $45 million

8. Construction – $41 million

9. Arts, Entertainment & Recreation – $38 million

10. Real Estate & Rental & Leasing – $27 million

 

Top 10 Industries by Number of Loans

1. Accommodation and Food Services – 243

2. Retail Trade – 204

3. Other Services (except Public Administration) – 191

4. Health Care & Social Assistance – 186

5. Professional, Scientific & Technical Services – 160

6. Construction – 138

7. Manufacturing – 81

8. Transportation & Warehousing – 74

9. Wholesale Trade – 73

10. Administrative Support & Waste Management & Remediation Services – 71

 

One of the biggest challenges that small businesses face is access to affordable financing. Top lenders signing SBA-backed loans in Los Angeles include some of the larger banks like JPMorgan Chase and Wells Fargo, as well as some smaller players, including Celtic Bank and Zions First National Bank. Unfortunately, these banks have some of the most strongest underwriting criteria. Most small businesses are better off speaking with smaller and more aggressive SBA lenders in Houston. Applicants that apply for a SBA loan with GoSBA loans benefit from automatic circulation of their loan application to 33 of the 100 top Houston SBA lenders. Here is our GoSBA’s official ranking for the 50 Best Houston SBA Lenders In 2018.

 

RANK	BANK	VOLUME FUNDED ($)
1	BBVA COMPASS BANK	$61,323,440
2	WALLIS STATE BANK	$53,438,100
3	JPMORGAN CHASE BANK NATL ASSOC	$52,858,612
4	WELLS FARGO BANK NATL ASSOC	$51,443,175
5	SPIRIT OF TEXAS BANK, SSB	$39,084,000
6	TEXAS CITIZEN BANK, NATL ASSOC	$37,622,957
7	ICON BANK OF TEXAS, NATL ASSOC	$34,964,000
8	PLAINS STATE BANK	$34,428,992
9	GREEN BANK	$34,237,500
10	ALLEGIANCE BANK TEXAS	$33,971,745
11	TEXAN BANK, NATL ASSOC	$26,375,300
12	LIVE OAK BANKING COMPANY	$24,616,300
13	COMERICA BANK	$24,340,723
14	AMEGY BANK A DIVISION OF ZB, NA	$20,849,250
15	COMMONWEALTH BUSINESS BANK	$18,117,000
16	PIONEER BANK, SSB	$16,857,400
17	MEMBERS CHOICE CU	$16,819,000
18	THIRD COAST BANK SSB	$16,637,806
19	TRANSPECOS BANKS, SSB	$11,936,000
20	WESTBOUND BANK	$11,000,000
21	THE BRENHAM NATIONAL BANK	$10,533,492
22	STEARNS BANK NATL ASSOC	$10,500,000
23	SEACOAST COMMERCE BANK	$9,919,600
24	PACIFIC PREMIER BANK	$9,683,000
25	CELTIC BANK CORPORATION	$9,047,200
26	ROYAL BUSINESS BANK	$8,980,000
27	PLAINSCAPITAL BANK	$8,619,500
28	EAST WEST BANK	$8,487,500
29	FROST BANK	$8,328,900
30	BYLINE BANK	$7,920,000
31	TEXAS ADVANTAGE COMMU BANK NA	$7,875,000
32	CAPITAL ONE NATL ASSOC	$7,012,500
33	INTEGRITY BANK	$6,905,000
34	UNITED COMMUNITY BANK	$6,827,000
35	TEXAS GULF BANK NATL ASSOC	$6,593,500
36	FIRST HOME BANK	$6,538,700
37	FIRST IC BANK	$6,239,000
38	NEWTEK SMALL BUS. FIANCE INC.	$6,071,900
39	WHITNEY BANK	$5,963,200
40	TEXAS FIRST BANK	$5,521,907
41	FIDELITY BANK	$5,308,500
42	THE MINT NATIONAL BANK	$4,670,000
43	IBERIABANK	$4,581,000
44	FIRSTRUST SAVINGS BANK	$4,536,000
45	TEXAS CAP. BANK NATL ASSOC	$4,315,000
46	FIRST CHATHAM BANK	$4,205,500
47	TEXAS DOW EMPL CU	$4,123,000
48	BANK OF CORAL GABLES	$4,082,900
49	FIRST FINANCIAL BANK	$4,080,000
50	THE BANCORP BANK	$4,022,000