The United States Small Business Administration (SBA) recently shared numbers around its progress in small business lending for the year as it has increased the number and dollar amount of loans across several small business capital programs. This includes $50 billion in capital, disaster relief, and bonding to small businesses and disaster-impacted communities across the country in Fiscal Year 2023 (FY23).
The administration said it experienced a banner year of lending with increases in its microloan program and its flagship 7(a) Loan Program. It also made significant increases in lending to Black, Latino, Asian American, Pacific Islander and Native Hawaiian, Native American, women, and veteran small business owners.
According to the SBA, the organization issued:
“Starting and running a business takes tremendous grit and determination, but it also takes capital — something too many enterprising Americans have historically been unable to obtain equitably and affordably,” said SBA Administrator Isabel Casillas Guzman.
In Fiscal Year 2023, the SBA transformed its lending and investment programs and expanded its capital partners to deliver nearly $50 billion in startup, growth, and recovery capital, as well as surety bonds, including more small business lending to people of color, women, and veterans.
The SBA backed over 57,300 7(a) loans worth $27.5 billion to small businesses in FY23. This is above pre-pandemic levels. Nearly 70 percent of 7(a) loan volume (over 39,000 loans) were small-dollar loans of $350,000 or less. Also, during FY23, the 504 program provided over 5,900 fixed-rate loans for equipment, real estate, and debt refinancing worth over $6.4 billion to small businesses.
At the same time, $87 million in microloan funding was provided to over 5,500 small businesses. According to the SBA, 35 percent of these loans went to black-owned businesses, and 15 percent went to Latino-owned businesses.
The SBA also delivered $670 million in disaster assistance to over 5,200 small businesses. During the year, the administration made changes to increase loan limits for homeowners and renters following federally declared disasters.
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