WASHINGTON – Today, ahead of the biggest shopping day of the year, U.S. Small Business Administrator Isabel Casillas Guzmanannounced that the SBA delivered $50 billion in capital, disaster relief, and bonding to small businesses and disaster-impacted communities across America in Fiscal Year 2023 (FY23). Under the Biden-Harris Administration, the SBA experienced another banner year of lending with increases in its microloan program, as well as its flagship 7(a) Loan Program — the agency’s primary vehicle for providing funding to small businesses. In addition, the Biden-Harris Administration’s commitment to equity advanced further with significant increases in SBA lending to Black, Latino, Asian American, Pacific Islander and Native Hawaiian, Native American, women, and veteran small business owners in FY23.
“Starting and running a business takes tremendous grit and determination, but it also takes capital — something too many enterprising Americans have historically been unable to obtain equitably and affordably,” said SBA Administrator Guzman. “The Biden-Harris Administration remains committed to simplifying and addressing persistent inequities in accessing capital to ensure all small business owners can get the funding needed to grow and create jobs for our economy. In Fiscal Year 2023, the SBA transformed its lending and investment programs and expanded its capital partners to deliver nearly $50 billion in startup, growth, and recovery capital, as well as surety bonds, including more small business lending to people of color, women, and veterans. As we build on our progress, the SBA will continue to prioritize reforms that will help level the playing field to further the small business boom fostered by Bidenomics.”
Highlights of the SBA’s FY23 lending include a notable increase in the number and value of 7(a) loans to small businesses across America, as well as a rise in the number of small-dollar loans distributed through this essential program. The SBA also made strides in its ongoing efforts to close persistent gaps in capital, particularly for entrepreneurs from underserved communities. Since President Biden took office, the SBA has more than doubled the number and total dollar amount of loans to Black-owned small businesses and, in FY23, delivered a record amount of loan dollars to Latino-owned small businesses. And, after declining between 2016 and 2020, the number of loans to women-owned businesses is back on the rise under the Biden-Harris Administration.
By the Numbers: Overall Funding and Impact
In FY23, the SBA continued to innovate and retool its programs, while deepening outreach efforts to business owners across the nation, particularly those from underserved communities. FY23 regular business lending and investment programs data of note includes:
- $27.5 billion in 7(a) loans: Rising above pre-pandemic levels, the SBA backed more than 57,300 7(a) loans worth $27.5 billion to small businesses in FY23. In total, nearly 70% of the SBA’s 7(a) loan volume (more than 39,000 loans) were small-dollar loans of $350,000 or less, with the program originating more loans under $150,000 in FY23 than in FY22, FY21, and FY20 — an overall 45% increase since President Biden took office.
- $6.4 billion in 504 loans: In FY23, the SBA’s 504 program delivered more than 5,900 fixed-rate loans for equipment, real estate, and debt refinancing worth more than $6.4 billion to small businesses.
- $87 million in microloan funding: In FY23, $87 million in microloan funding went to more than 5,500 small businesses, with 35% of loans going to Black-owned businesses and 15% of loans going to Latino-owned businesses.
- $670 million in disaster assistance for small businesses: Throughout the year, the SBA stepped up in moments of crisis to deliver critical support to business owners and communities in need. FY23 saw $670 million in relief delivered to more than 5,200 businesses across America.
- $8 billion in funding through private debt and equity funds licensed as Small Business Investment Companies (SBICs): In FY23, the SBIC program recorded highs of $8 billion in investments. The SBA’s portfolio of 318 SBIC funds collectively provided financing to more than 1,200 small businesses and startups in FY23, which created or sustained over 130,000 jobs.
- $7.3 billion in surety bonds: In FY23, the SBA’s Surety Bond Guarantee Program enabled 1,900 small businesses in the construction, services, supply and manufacturing industries to obtain 3,400 private and public contracts. Furthermore, 62% of the SBA’s guarantees went to women, minority, or veteran businesses.
- $670 million in export-related trade finance: Achieving a second-consecutive year of export finance growth, and despite a rising interest rate environment, the SBA underwrote $365 million in Export Express and International Trade term loans, alongside its Export Working Capital portfolio of $305 million.
