Small business lending drops in 2022 but is still the second best on record in Nebraska
Small business lending dropped off considerably in the past year in Nebraska, but the numbers were still strong.
According to the Small Business Administration, there was $198.7 million worth of SBA loan guarantees in the state in its 2022 fiscal year that ended Sept. 30, which was down about $45 million from the record number in fiscal year 2021.
But the total loan volume in 2022 is still the second highest ever in Nebraska and was $30 million more than the year ranking third.
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“The funding numbers for fiscal year 2022 far exceeded our expectations,” Tim Mittan, district director for the SBA Nebraska Office, said in a news release.
While it wasn’t close to a record year for overall lending, one category did hit a record.
The SBA said 85 businesses were approved for what are known as 504 loans worth $74.4 million, up substantially from 77 of the loans worth $50.5 million in 2021.
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The 504 loans, which allow businesses to buy large equipment or build, buy or expand buildings, are facilitated through nonprofit lenders called certified development companies.
Nebraska Economic Development Co., which is based in Lincoln, is the largest 504 lenders in a four-state area.
Scott Sailors, NEDCO’s president, said it did 81 of those loans worth about $68.7 million, which set records for the organization.
Sailors said NEDCO did a lot of loans for medical and dental offices and also saw a small rebound in hotel projects, which had essentially dried up during the pandemic.
He also said higher interest rates have yet to put a damper on many projects.
“We see people just going full steam ahead,” Sailors said.
NEDCO ranked 28th overall out of about 200 certified development companies nationwide for loan volume in FY 2022, and nearly all the CDCs ahead of it are based in much larger cities.
In addition to Lincoln-based NEDCO leading the way on 504 loans, two Lincoln banks were the top lenders for traditional SBA 7(a) loans in Nebraska in the most recent fiscal year.
First State Bank Nebraska was the top lender by number of loans with 42, while Union Bank & Trust was second with 28.
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Measured by amount of loans, Union Bank was first with about $12.4 million, while First State was second with nearly $10.8 million.
Overall, the SBA Nebraska Office said the nearly $200 million worth of 504 and 7(a) loans in FY 2022 created or saved more than 3,750 jobs in the state.
Those weren’t the only loans Nebraskans took advantage of, though.
SBA Omaha reported it guaranteed 85 microloans for $1.6 million, up from 61 loans for $1.2 million last year. Microloans are loans of $50,000 or less available to eligible small businesses and nonprofit child care providers.
And business owners in the state continued to take advantage of pandemic loan programs.
SBA Omaha said Nebraskans received 1,716 Economic Injury Disaster Loans worth nearly $328 million in FY 2022. That was down from more than 15,000 loans worth more than $1.2 billion in FY 2021, but the program was only available for three months of the SBA’s fiscal year.
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5 ways tech innovation has changed skilled trade jobs
5 ways tech innovation has changed skilled trade jobs
New technologies can significantly affect companies that adopt them, helping to reduce errors and increase productivity. That’s as true today as ever before.
The COVID-19 pandemic, for example, accelerated a shift to automation within many businesses seeking to alleviate worker shortages and boost profits. A September 2021 Harvard Business Review report found that jobs linked to artificial intelligence, algorithms, and automation saw a 28% increase, compared with the previous quarter that year. And an April 2022 report on cloud computing forecasted spending on cloud-based services to approach $600 billion next year, compared with a little over $400 billion in 2021.
The construction industry and other trade jobs, in particular, have undergone a major technological upgrade of late as those industries have navigated through supply chain issues and labor shortages. ServiceTitan compiled a list of some of those technologies based on an Association of General Contractors nonrandom survey of its members, other research reports, and news coverage of the industry.
Sorn340 Studio Images // Shutterstock
Cloud-hosted technologies
As previously mentioned, many companies, including trade businesses, are learning more and more on cloud-hosted technologies. The way companies have had to navigate supply chain issues brought about by the pandemic has shown the benefits of putting information in the cloud.
For example, heating, ventilation and air conditioning parts have been in high demand, largely due to supply chain issues. As a result, many trade businesses haven’t had enough new equipment, raw materials such as PVC, or replacement parts to meet demand. Manufacturers and businesses alike have also been battling labor shortages. Companies that have fared well are those with updated inventory cloud management systems. These companies can better analyze which products could be sourced in the US, determine the cost of equipment and materials, and prevent potential loss of revenue. And making sure the equipment and materials are available helps with worker retention by reducing idle time caused by supply shortages.
jamesteohart // Shutterstock
Mobile software
More companies are using mobile software apps on construction sites. Construction software apps help employees on a project analyze and share data in real-time, and allow workers to generate field reports more quickly. According to the AGC survey published in January, most members (68%) said that they’ll use mobile software technology this year mainly for daily field reports. Sixty percent of AGC members also said they plan to use mobile software for employee time tracking, and 57% of respondents that they plan to use the software for field access to job information.
sculpies // Shutterstock
Virtual and augmented reality
Virtual and augmented reality goes back to the 1980s, when government agencies such as NASA used the technology to manufacture realistic scenes and objects. Mainstream interest died down for a while, but in recent years, there’s been more advancement and funding of the technology.
AR is obtained through visual elements and sound via technology, while virtual reality strives to create a sensory experience that can include sight and touch. The AR market is expected to grow to a value of nearly $600 billion, according to a 2021 Grand View Research report.
Several companies have tapped into AR and VR technologies in recent years, including Microsoft’s creation of the HoloLens headset. The device uses AR technology with holographic processing and multiple optical sensors to simulate a virtual world.
Technology like the HoloLens can help engineers locate problems or efficiencies in early-stage design and create accurate models before construction starts. On building sites, the device could be used to inspect for safety or aid in training workers. McKinstry, a company with several locations across the US, used HoloLens to build an AR solution for a pipe-hanger installation project.
SeventyFour // Shutterstock
Building information modelling
Architectural blueprints and technical drawings have been increasingly replaced by building information modeling, a digital representation of spaces widely used by architects, engineers, and construction workers. BIM can provide interior and exterior 3D model data and documentation of a building. A 2021 Dodge Data & Analytics report found that BIM usage is most common among architects, with 40% using the technology for space utilization plans. About one in five AGC members surveyed plan to increase BIM investments in 2022.
ME Image // Shutterstock
Drones
Drones monitor the surroundings while work is in progress and can catch potential hazardous situations. In 2021, for example, drone surveillance footage revealed a crack in Tennessee’s I-40 bridge, which posed a threat, causing the bridge to close for repair to avoid further catastrophe.
The construction industry can expect to see huge investments with President Biden’s infrastructure bill—which includes $110 billion for road and bridge projects and will allow grants to use US-made drones to help ensure safety while jobs are in progress. Other legislation was recently passed to help research universities train future drone-operating employees.
This story originally appeared on ServiceTitan and was produced and distributed in partnership with Stacker Studio.
Dmitry Kalinovsky // Shutterstock
Reach the writer at 402-473-2647 or [email protected].
On Twitter @LincolnBizBuzz.
