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SBA Community Advantage Program Announcement
U.S. Small Business Administration Surpasses $50 Billion Mark, Advances Equity in Lending
The U.S. Small Business Administrator, Isabel Casillas Guzman, has announced remarkable progress in small business lending under the Biden-Harris Administration. As the nation gears up for the year’s largest shopping day, the SBA reveals a substantial delivery of nearly $50 billion in capital, disaster relief, and bonding to small businesses and disaster-affected communities across America in Fiscal Year 2023 (FY23).
Key Highlights:
- Record Funding and Commitment to Equity: The Biden-Harris Administration demonstrated a commitment to equity, with substantial increases in SBA lending to Black, Latino, Asian American, Pacific Islander, Native Hawaiian, Native American, women, and veteran small business owners in FY23.
- Microloan and 7(a) Loan Program Growth: The SBA experienced a banner year in lending, witnessing growth in both its microloan program and flagship 7(a) Loan Program, the primary vehicle for providing funding to small businesses.
- Transformation of Lending Programs: In FY23, the SBA transformed its lending and investment programs, expanding its capital partners to deliver startup, growth, and recovery capital, as well as surety bonds. Notably, there was an emphasis on providing more small business lending to people of color, women, and veterans.
- Closing Gaps and Fostering Growth: The SBA made significant strides in closing persistent gaps to capital, particularly for entrepreneurs from underserved communities. The number and total dollar amount of loans to Black-owned small businesses more than doubled since President Biden took office.
By the Numbers: Overall Funding and Impact
- $27.5 Billion in 7(a) Loans: The SBA backed more than 57,300 7(a) loans worth $27.5 billion, surpassing pre-pandemic levels. Nearly 70% of the 7(a) loan volume comprised small-dollar loans, with a 45% increase since President Biden took office.
- $6.4 Billion in 504 Loans: The 504 program delivered more than 5,900 fixed-rate loans worth over $6.4 billion for equipment, real estate, and debt refinancing.
In the words of SBA Administrator Guzman, “The SBA will continue to prioritize reforms that will help level the playing field to further the small business boom fostered by Bidenomics.” The FY23 achievements mark a significant step toward simplifying and addressing persistent inequities in accessing capital for small business owners.
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