SBA loan volume has been affected by Supply-Side liquidity issues on the part of most banks. Banks that fund SBA loans want to sell the debt into the commercial secondary market. If they fail to do this they will have to account for the loan balance in their reserves.

Selling the guaranteed part of the loan, banks only need to tap their reserves for the remained of the account.
A big reason that demand for SBA 7(a) loans has fallen in the secondary market is that many market investors have their funding sources tied to the London Interbank Offered Rate (LIBOR). And LIBOR has increased dramatically against the prime rate to which most SBA 7(a) loans are tied. When the LIBOR is 4.3 percent and prime is 4 percent, for example, it no longer makes sense for foreign investors to purchase securities linked to the prime rate.
The SBA has recognized this problem. This past November, it started to allow banks to use the one-month LIBOR plus 3 percent, in addition to the prime rate, as the loan’s base rate. This change should help to eliminate the LIBOR/ Despite these supply-and-demand issues, SBA loans are still available to small-business owners, and banks are still providing them.
Try getting your small-business clients a barbershop, gas station or motel loan with straight conventional financing at any decent LTV — it’s very unlikely. With scarce options for conventional lending for high-leverage loan requests, brokers will turn to the SBA for the funding of choice for many owner-users in today’s market.