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The
growth was driven by smaller loans, the agency said in its
annual Capital Impact report.
For the first time since 2008, the SBA distributed more than
100,000 financings to small businesses, up 22% from fiscal 2023
and 50% over 2020.
The SBA doesn't give out direct loans, except when they're
related to disasters, but it works with lenders to distribute
loans to small businesses. The loans typically have better rates
than traditional loans.
“As every entrepreneur knows, capital is critical," said SBA
Administrator Isabel Casillas Guzman. “Through loans,
investments, and surety bond guarantees, the SBA has helped
power the small businesses that have in turn powered America’s
unparalleled economic recovery from the COVID-19 crisis.”
Many loans were small dollar, a priority for the SBA. The SBA
said it backed over 38,000 7(a) loans under $150,000, for a
total of $2.7 billion. That’s double from the amount of small
dollar loans received in 2020 and one-third higher than 2023.
The SBA said in the report it implemented a rule to simplify and
streamline lending criteria for all lenders and strengthened its
network of SBA lenders to give small businesses more access to
small-dollar loans — instead of turning to credit cards or other
high-interest lending options.
A particular focus has been Black-, Latino- and women-owned
businesses. The SBA helped to distribute 5,200 loans for $1.5
billion to Black-owned businesses, 9,600 loans for $3.3 billion
to Latino-owned businesses, and 15,500 loans for $5.6 billion to
majority women-owned businesses during the fiscal year.
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