This week the SBA released their performance numbers for the fiscal year 2020. Let’s focus on the regular program results – outside of the EIDL or PPP.
- In FY20, the SBA's 7a loan program made approximately 42,000 7(a) loans totaling $22.55 billion. These loans can be used for working capital, recapitalizations, partner buyouts, acquisitions, or real estate and equipment.
- The 504 loan program, exclusively for real estate and equipment deals, made more than 7,000 loans for more than $5.8 billion.
Some other highlights.
- The Microloan Program, which specifically helps businesses in underserved communities, made nearly $85 million going to over 5,800 small businesses. Thirty-four percent of Microloans made in FY20 went to Black-owned small companies.
- Minority business owners received $7.5 billion in combined 7(a) and 504 lending, or 27% of SBA’s loan portfolio.
- SBA's 7(a) lending to women-owned businesses was nearly $2.7 billion in FY20, while borrowing from the 504 loan program to women-owned companies was over $522 million.
- Additionally, veterans' loans totaled nearly $835 million for the 7(a) and 504 programs.
The SBA can and should be an essential component to our economic recovery, and hopefully, next year's numbers will blow these out of the water !!!