Small Business Administration-backed funding rises 7% to $56 billion in fiscal year 2024

The Small Business Administration said it provided $56 billion in funding for small businesses and disaster-stricken areas during the fiscal year that ended Sept. 30, up 7% from a year earlier.

The growth was driven by smaller loans, the agency Capital Impact said in its annual report.

For the first time since 2008, the SBA issued more than 100,000 loans to small businesses, up 22% from FY 2023 and 50% from 2020.

The SBA does not issue direct loans unless they are disaster-related, but 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 guarantees, the SBA has helped support small businesses, which in turn have fueled America’s unprecedented economic recovery from Covid-19. 19th crisis.”

Many of the loans were small dollar, which is a priority for the SBA. The SBA said it has supported more than 38,000 7(a) loans under $150,000 for a total of $2.7 billion. That’s double the amount of small-dollar loans received in 2020 and one-third more than in 2023.

The SBA report said 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 loans. parameters.

There was a special focus on Black, Latino and women-owned businesses. During the fiscal year, the SBA helped issue 5,200 loans worth $1.5 billion to Black-owned businesses, 9,600 loans worth $3.3 billion to Hispanic-owned businesses, and 15,500 loans worth $5.6 billion to businesses, most which belong to women.