February 14, 2022
Main Street Monday – SBA 7(a) and 504 Loan Portfolio Increased an Average of 6.6% in FY21
“While the SBA received the addition of ARPA and Economic Aid Act funds, overall total assets decreased by $335.1 billion for a FY 2021 total asset amount of $562.4 billion, due to a decrease in appropriations received for PPP, among other items. Total liabilities in FY 2021 were $504.0 billion compared to FY 2020 of $718.1 billion. The SBA’s net position and net cost of operations decreased compared to FY 2020,” reads the SBA Agency Financial Report for Fiscal Year 2021.
Here are the key takeaways from their analysis of performance results:
• The customer satisfaction rate for disaster loan approvals was 76%.
•SBA’s total loan portfolio decreased 15% in FY21, but this can be attributed to the PPP’s portfolio decrease of 38%.
•The 7(a) program’s portfolio increased by 6.8%.
•The 504 loan portfolio increased by 6.4%.
•The disaster loan portfolio increased by $63.8 billion (34%).
•There was an average quarterly loan volume increase of $11.2 billion.
•Total small business loans increased by almost $224 billion between 2015 and 2020.
•In fiscal year 2021, SBA approved $31 billion in the Disaster Assistance loan program, a substantial increase from the $2.2 billion approved in fiscal year 2019.
•As of July 2021, the average FY21 7(a) delinquency rate was 0.6%.
•The charge-off rate for the 7(a) loan program was 0.5% in 2021.
•504 loan delinquency rates averaged at 1.9% in FY21.
•The 504 program had a charge-off rate of 0.2% in July 2021.