December 30, 2019
By Mary Miller
Contributing Editor, Main Street Monday
Main Street Monday – Small Business Projections for 2020
According to the most recent SBA Financial Report, small businesses across the U.S. have experienced strong growth in every state and industry throughout the 2019 calendar year. This trend is predicted to continue into 2020.
Here are statistics released in the SBA report:
- The SBA approved more than 58,000 loans in the 7(a) and 504 loan programs, resulting in more than $28 billion to small businesses.
- These loans supported approximately 550,000 American jobs.
- The SBA’s 7(a) lending to women-owned businesses was almost $6.6 billion in FY 2019
- The SBA’s 504 lending to women-owned businesses was over $1.5 billion.
- Minority-owned businesses received $8.8 billion in combined 7(a) and 504 lending (31% of the SBA’s loan portfolio)
Other surveys and statistics support these record-breaking numbers, including the NFIB Small Business Optimism Index. The latest Index from November 2019 reported an optimism level of 104.7, the largest month-over-month gain since May 2018.
Small Business Trends in 2020
- Small business trends in 2020 focus on continued growth and increased revenue projections.
- Movers and shakers to watch in Main Street include women and minority-owned small businesses.
- Women-owned businesses expect to see the largest amount of growth in 2020. 73% have plans for expansion and 62% expect revenues to increase next year
- Although small businesses are enjoying record-high numbers for performance and growth, challenges continue with staffing (finding/retaining qualified staff), cybersecurity, keeping up with technology demands and unstable elements in Washington.
SBA FY 2019 report
NFIB Small Business Optimism Index
Guidant Financial/Lending Club 2019 Trends Report
American Express – State of Women-Owned Businesses
Bank of America Business Advantage, 2019 Women Business Owner Spotlight report