WASHINGTON – Today, Administrator Isabel Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses, announced new SBA data showing that SBA-backed loans to Black-owned small businesses have more than doubled under the Biden-Harris Administration, with nearly $1.5 billion in lending.
“Underinvestment in Black entrepreneurs and other underserved small business owners has limited our economy for decades, and, under the Biden-Harris Administration, the SBA is committed to addressing historic capital gaps to ensure all of our entrepreneurs can create jobs and produce for our economy,” said SBA Administrator Isabel Guzman. “Our FY23 loan numbers show we are seeing results from our actions, with loans to Black-owned businesses doubling since President Biden took office – a testament to the entrepreneurial spirit of Black Americans and this Administration’s commitment to simplifying access, cutting red tape, and broadening the distribution network to create competition and meet the needs of underserved markets. While our progress delivered $1.45 billion to Black-owned businesses last year, we know there is still more work to be done to expand opportunity and make the American dream a reality for all.”
In a tightening credit environment, the SBA’s lending programs deliver a market solution by offering government-backed loans with favorable terms to fill market gaps and get needed funding into small businesses. The SBA backed 4,781 loans to Black-owned businesses in Fiscal Year 2023 through the agency’s signature 7(a) and 504 loan programs, well over double the number in Fiscal Year 2020 (2.78x). Total loan dollars amounted to $1.45 billion, also more than doubling since the start of the Biden-Harris Administration (2.45x), while the Black share of the SBA’s lending portfolio rose from 3.5 percent to 7.6 percent.
| SBA 7(a) & 504 Loans to Black-owned businesses | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|---|---|---|---|
| Total loans | 2,511 | 2,701 | 2,476 | 1,718 | 2,741 | 3,630 | 4,781 |
| Dollars (millions) | $671 | $780 | $784 | $592 | $1,067 | $1,148 | $1,455
|
| Share (% of loans) | 3.7% | 4.1% | 4.3% | 3.5% | 4.5% | 6.4% | 7.6% |
Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, and FY23 furthered that trend with 11 percent more loans delivered to small businesses than in FY22. Black-owned small businesses are crucial to this monumental growth, with the rate of Black-owned small business creation at its highest level in 25 years.
