U.S. Small Business Administrator Isabel Casillas Guzman revealed that the Small Business Administration (SBA) delivered $50 billion in capital, disaster relief, and bonding to small businesses in Fiscal Year 2023 (FY23). This achievement marks a historic milestone under the Biden-Harris Administration, highlighting a robust year of lending and a strong commitment to equitable access to capital.
Unprecedented Growth in SBA Lending Programs
The SBA’s remarkable performance this fiscal year includes substantial increases in its microloan program and the flagship 7(a) Loan Program. Notably, the 7(a) program, essential for funding small businesses, saw a considerable rise in both the number and value of loans. This growth signifies the administration’s dedicated efforts to boost small business success across America.
Advancing Equity in Small Business Lending
A key focus of the Biden-Harris Administration has been to address historical disparities in accessing capital. This commitment is evident in the marked increase in SBA lending to minority groups, including Black, Latino, Asian American, Pacific Islander, Native Hawaiian, Native American, women, and veteran small business owners. The SBA’s efforts have more than doubled the number and total dollar amount of loans to Black-owned small businesses and delivered record loan amounts to Latino-owned businesses in FY23.
Key Figures and Impacts
The SBA’s FY23 lending highlights include:
- $27.5 Billion in 7(a) Loans: More than 57,300 loans, showing a significant increase in small-dollar loans.
- $6.4 Billion in 504 Loans: Over 5,900 loans for equipment, real estate, and debt refinancing.
- $87 Million in Microloan Funding: Benefiting over 5,500 small businesses, with a significant portion aiding Black and Latino-owned businesses.
- $670 Million in Disaster Assistance: Supporting over 5,200 businesses nationwide.
- $8 Billion through SBICs: Financing over 1,200 small businesses and startups, helping create or sustain over 130,000 jobs.
- $7.3 Billion in Surety Bonds: Aiding small businesses in obtaining private and public contracts, with a focus on women, minority, or veteran businesses.
- $670 Million in Export-Related Trade Finance: Showing a consecutive year of growth in export finance.
Closing the Capital Access Gap
Under Administrator Guzman’s leadership, the SBA has expanded access to its lending programs, significantly impacting American job creation, exports, and GDP. Efforts to close longstanding market gaps include the authorization of new Small Business Lending Company (SBLC) licenses and broadening access to capital for minority-owned businesses.
As the SBA steps into FY24, it aims to continue transforming investment networks and expanding disaster loan programs to support small businesses and communities. These efforts underscore the administration’s commitment to fostering an inclusive and resilient economy.
Image: Sba
