SBA Reports Record $56 Billion In Small Business Financing

The U.S. Small Business Administration (SBA) has announced a significant increase in financing for small businesses in the US this year, with $56 billion backed in fiscal year 2024, ending September 30.

This marks a 7% rise from the previous year, as reported in the SBA's annual Capital Impact report.

The report highlights that for the first time since 2008, the SBA facilitated over 100,000 financings to small businesses, an increase of 22% from fiscal 2023 and a 50% rise since 2020. This growth was driven by a surge in smaller loans, reflecting a broader trend toward accessible financing for smaller enterprises.

SBA Administrator Isabel Casillas Guzman emphasized the critical role of capital in supporting economic growth, especially in the post-pandemic recovery. “As every entrepreneur knows, capital is critical," said 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.”

In line with its commitment to accessibility, the SBA expanded its support of smaller loans. The agency backed over 38,000 loans of $150,000 or less through its flagship 7(a) loan program, totaling $2.7 billion. This represents a 100% increase from the number of similar loans issued in 2020 and a 33% rise over last year.

To enhance the reach of its financing, the SBA introduced measures to streamline lending criteria and strengthen its lender network, aiming to make small-dollar loans more accessible. These efforts intend to provide small businesses with alternatives to high-interest options like credit cards, broadening financial accessibility.

The SBA also prioritized equity, focusing on minority- and women-owned businesses. During the fiscal year, the agency supported 5,200 loans worth $1.5 billion for Black-owned businesses, 9,600 loans totaling $3.3 billion for Latino-owned businesses, and 15,500 loans amounting to $5.6 billion for women-owned businesses.

As the SBA continues to prioritize small-dollar loans, its initiatives are set to further support the U.S. small business landscape, fostering inclusivity and growth in diverse communities nationwide. See if you qualify now.