Main Street Monday – SBA Reports Impressive Lending Stats for African American Women-Owned Businesses in 2019

December 2, 2019

By Mary Miller
Contributing Editor, Main Street Monday

Main Street Monday – SBA Reports Impressive Lending Stats for African American Women-Owned Businesses in 2019

Since its inception, the SBA 7(a) Lending Program has approved 1,412 loans, totaling $334.1 million, to African American women-owned businesses. Additionally, loans to African American women-owned businesses have increased by 5% and have seen an almost 30% gain in dollar value between fiscal years 2018-2019.

These statistics point towards a positive outlook for the future of African American women-owned businesses, as they represent one of the fastest-growing segments of the nation’s small businesses. Using SBA loans as a means to start or grow their businesses, black female entrepreneurs are helping the SBA achieve double-digit increases in loan approvals in this market segment.

More Impressive Statistics

  • Through September 2019, the SBA approved 1,192 in combined 7(a) and 504 loans for $740 million to women-owned businesses, representing an increase of 9% in the number of loans and a 7% rise in dollar volume from the same reporting period in 2018.
  • The SBA approved more than $19.6 million in loans to black-owned businesses in 2019, up 17% in dollar volume from 2018, and an impressive rise of 34% from 2017.
  • The SBA approved $20 million+ in microloans (average loan amount of $15,000 or less) to black-owned businesses in 2019. These stats represent an increase of 19% in dollar volume from FY 2018, and a rise of 36% from FY 2017.

According to Bill Manger, the SBA’s Associate Administrator for the Office of Capital Access, the 504 Loan Program has reached an increase of 10% in total loan dollars to women-owned businesses in the last year alone. Manger notes that the SBA is seeing many more women, including an increase in African American women, seeking loan capital to start or grow a business.

“These are trends we’ve seen in the past couple of years that didn’t exist five years ago,” says Manger. He attributes these positive SBA lending trends to factors including a strong economy, record-low African American unemployment rates, low banking interest rates and an overall positive, optimistic outlook regarding the economy.