C-Suite Wednesday – Small Businesses Received Nearly $29 Billion in FY23 So Far
August 30, 2023
Delaney Sexton
Contributing Editor
C-Suite Wednesday – Small Businesses Received Nearly $29 Billion in FY23 So Far
With only one month remaining in fiscal year 2023, the SBA is not expected to run out of funding. Following the trend of recent years, SBA and lenders have gotten more money out than in 2020 and the preceding years. SBA’s latest data shows that $28.9 billion and 54,536 loans have gone out under the 7(a) and 504 loan programs.
Data from August 28th shows that 49,251 7(a) loans have been approved so far. More than $23.25 billion has been lent to America’s small businesses, and the average 7(a) loan size is $472,220. A majority of 7(a) loans were small dollar loans ($500,000 or less) at 77.5% of all 7(a) loans. Over half of all 7(a) loans were $150,000 or less, and the most common loan type was loans $50,000 and smaller comprising 27.3% of the total 7(a) loan portfolio.
Broken down into industries, Accommodation & Food Services (17.7%), Retail Trade (14.2%), and Healthcare & Social Assistance (10%) received the most funding from the 7(a) program. Based on the number of loans, the most popular industries were Construction (13.6%), Accommodation & Food Services (13%), and Retail Trade (12.2%).
Under the 504 program, there have been 5,285 loans approved worth over $5.65 billion. An average 504 loan was more than $1 million. The industry that received the greatest number of 504 loans (16.4%) and the highest dollars (19.8%) was Accommodation & Food Services.
The Community Advantage program has had significant growth in fiscal year 2023. Data from July 31st reveals that Community Advantage disbursements surpassed $129 million. Compared to the same time in fiscal year 2020, the total dollar amount grew by more than $40 million. The total number of Community Advantage loans was 728 at the end of July, up 28% from fiscal year 2022.