January 12, 2021
C-Suite Wednesday – 504 Lending up 65% in Fiscal Year 2022
As of January 7, there are 9,632 7(a) loans that have been approved for more than $4.8 billion. SBA reports that around 70% of the 7(a) loan volume in fiscal year 2022 has been loans under $150,000. In comparison to this time in the previous five years, fiscal year 2022 has the lowest amount of approved dollars and the second-lowest number of approved loans.
On the other hand, the 504 loan program is seeing outstanding numbers for the second year in a row. Over 3000 504 loans have been approved since the start of the fiscal year, almost 1000 more 504 loans than this time in the record-breaking fiscal year 2021. $3.105 billion has been approved in the 504 program. This is about a 65% increase in the total 504 loan dollar amount compared to FY21. At the current rate, the 504 program’s funds will be expended during the summer.
The SBA Express loan program is seeing more loans approved than in 2021. There are nearly 4,000 express loans, and $376 million has been approved. While there are more loans than in fiscal year 2021, the dollar amount that has been approved in fiscal year 2022 is the lowest it has been in the last five years.
The microloan program has approved more than 1,000 microloans for almost $16.5 million as of December 31, 2021. Of all the microloans in fiscal year 2022, 61% of the approved loans went to minority business owners. 49.1% of the microloans went to women, and 3.5% went to veteran owned businesses.
SBA Weekly Lending Report