By DAVID BERTOLA
dbertola@bizjournals.com | 716-541-1621

For the 17th straight year, M&T Bank has approved more U.S. Small Business Administration 7(a) loans than any other area bank.

According to figures from the SBA's Buffalo District, the bank approved 273 loans totaling $46.2 million in the Buffalo-Rochester area for SBA's 2011 fiscal year, which ended Sept. 30. Compared to 2010, that's a 13 percent increase in loan activity and a 42 percent increase in dollars approved.

Of M&T's loans, the bank approved 150 totaling $29 million in the Buffalo area.

The Buffalo District closed its fiscal year with approval of  804 7(a) loans totaling $136 million to small businesses in its 14-county service area. An additional 58 loans, under the agency's 504 loan program, were also approved for $37.4 million.

Overall lending for 7(a) and 504 loans totaled $165,618,200, the highest total for Buffalo-Rochester since 2005.

"The success of loan incentives has allowed the district to rebound in fiscal year 2011," said SBA District Director Franklin Sciortino. "As a result of the Small Business Jobs Act, the Buffalo District Office saw an increase of 9.7 percent in the number of loan approvals and a 22.3 percent increase in the dollar volume in 2011."

He added that the 504 loan program had a 7 percent increase in the number of loan approvals and a 40 percent increase in dollar volume.

SBA-guaranteed 7(a) loans are the agency's flagship loan program and an important source of long-term capital for small businesses. 504 loans are fixed-rate financing to acquire major fixed assets for expansion or modernization. Fixed-asset projects include purchasing land, including existing buildings, machinery or equipment. The loans can be used for renovations or other upgrades.

Other area banks with significant increases in lending from last year included:

• Five Star Bank, up 13 percent in loan numbers and a 103 percent increase in dollars.

• Evans Bank up 354 percent in numbers and 20 percent in dollars.

• Key Bank, up 144 percent in numbers and 31 percent in dollars.