December 14, 2022
C-Suite Wednesday – SBA Provided $43 Billion in Small Business Funding in FY22
“While still managing billions in COVID relief, the SBA also delivered record lending in FY22, helping tens of thousands of entrepreneurs across our nation get the needed funding to start, grow, and build resilient businesses,” says SBA Administrator Guzman. “Our work at the SBA, under the Biden-Harris Administration, addresses entrenched inequities in capital markets and throughout our economy. We continue to make progress expanding our network of SBA lenders and removing barriers to capital for small businesses – the foundation of a competitive global economy.”
Yesterday, the SBA announced that they provided almost $43 billion in funding to small businesses in fiscal year 2022. This included more than 62,000 traditional loans and over 1,200 investments through SBA-licensed Small Business Investment Companies. In 2022, the SBA also increase the number of financings to women-owned, minority-owned, and veteran-owned small businesses by almost 30% compared to the previous year.
This is the breakdown of the $43 billion in funding:
7(a) Program: There was almost 47,700 7(a) loans worth $25.7 billion in fiscal year 2022. Of those loans, 68% were small-dollar loans worth $350,000 or less.
504 Program: The SBA provided $9.2 billion and 9,254 504 loans in fiscal year 2022. More than a third of the $9.2 billion went to minority business owners and women-owned businesses, and the number of rural small businesses that received 504 loans increased by almost 15%.
Microloan Funding: 5,055 small businesses received $82.6 million in funding. More than three-quarters of that funding went to underserved communities.
SBICs: Through private debt and equity funds licensed as SBICs, 1,217 small businesses and startups received $7.9 billion in funding.
Export-Related Trade Finance: The SBA underwrote $275.3 million in Export Express and International Trade term loans and had an Export Working Capital Portfolio of $309.1 million for a total of $584.4 million in export-related trade financing.
“The SBA continues to make headway in helping startups and small businesses access much-needed capital, but much more work remains to be done,” says Patrick Kelley, Associate Administrator for the SBA’s Office of Capital Access. “Our flexible, low-interest 504 loan program grew in loan volume by 12 percent, and the SBA team is already at work for FY23 to support job and entrepreneurial growth across the country.”
SBA Press Release