Huntington Bank leads the way for Greater Cincinnati SBA lending in 2023

Greater Cincinnati companies received more Small Business Administration loans in fiscal 2023 than the prior year while one bank remained the unquestioned leader for local SBA lending.

The number of SBA loans to Greater Cincinnati companies rose 4% to 601 in fiscal 2023. But the amount borrowed declined 6% to $206 million. The numbers include SBA 7(a) and 504 loans only.

Columbus-based Huntington National Bank, Greater Cincinnati’s fifth-largest bank, led the way locally by making $56.5 million in local SBA loans last fiscal year, which ended in September. That was 32% of all SBA loans made in the seven Ohio and Kentucky counties in Greater Cincinnati, according to SBA data.

Huntington, the perennial leader in SBA lending in Greater Cincinnati and in the states where it operates, increased its SBA loan dollar amount in the local area by 7% from the prior year.

Huntington also was the clear leader in number of SBA loans with 309 in the fiscal year ended in September. That was more than six times the loans of second-place U.S. Bank, which made 46 SBA loans in Greater Cincinnati last year. What’s more, Huntington’s total tally in that category made up 60% of all SBA lending in Greater Cincinnati in fiscal 2023.

That’s nothing new.

Huntington has also been the nation’s largest lender in the SBA’s 7(a) loan program, which makes up the vast majority of loans in the local ranking, for six years in a row. It’s the leader in each of its states that represent its traditional markets in the Midwest.

“Huntington has always been about business,” Steve Mullinger, president of Huntington’s Greater Cincinnati market, told me. “And 80% of businesses in our country are small businesses, so we focus on a core market. We lean into SBA lending. It’s core to what we do.”

SBA lending makes up just a small part of the broader world of lending to small businesses, whether at Huntington or any bank. Huntington focuses more broadly on small-business lending in general. SBA loans, which are in large part guaranteed by the SBA and are typically made to borrowers that don’t qualify for more traditional loans, are just one tool they can use to work with smaller companies.

“We’re trying to be partners with our customers and help them determine what’s best for their capital structure and their business,” Mullinger said. “We want to help them grow.”

Fifth Third Bank had the biggest increase among the largest local SBA lenders. The dollar amount of its loans soared more than sixfold to $10 million from $1.5 million the prior year. Its number of loans more than doubled to 16 from just six in fiscal 2023.

Milford-based community bank RiverHills Bank had the second-most SBA loans by dollar amount, even though it's just the 25th-largest bank in Greater Cincinnati. It lent $10.8 million to local companies through the SBA program last year.

Growth in local lending activity fell a bit shy of the broader region. Loans approved through the SBA’s Columbus district office, which serves the southern half of the state, rose 7.1% last fiscal year. The Columbus office approved 1,876 loans for $616 million last year.

“Small businesses are the economic engine of the American economy,” said Everett Woodel, SBA Columbus district director. “We are proud to be a trusted small business ally and resource.”

Top 10 banks by Greater Cincinnati SBA loans in fiscal 2023:

Top 10 banks by Greater Cincinnati SBA loan dollar amount in fiscal 2023: