SBA Hot Topic Tuesday – 7(a) Dollars are Up 50% in Fiscal Year 2023

January 24, 2023

Delaney Sexton
Contributing Editor

SBA Hot Topic Tuesday – 7(a) Dollars are Up 50% in Fiscal Year 2023

*As of December 30, 2022

In fiscal year 2023, the 7(a) loan program is on the rise again after slowing down during the pandemic. Since the end of the first quarter of FY23, the SBA has approved almost $6.8 billion in 7(a) loans. At the end of the first quarter of FY22, there was less than $4.45 billion approved in 7(a) loans. This is an increase of 52.5% from fiscal year 2022 to fiscal year 2023.

The total number of 7(a) loans are also seeing significant growth in fiscal year 2023. Almost 13,000 7(a) loans were approved at the end of the first quarter, a 46% increase from the end of the first quarter in fiscal year 2022.

*As of December 30, 2022

The 504 loan program is experiencing the opposite effect from the 7(a) loan program. At the end of the first quarter of fiscal year 2023, just over $1.6 million in 504 loans were approved. The previous year, nearly $3 billion was approved in 504 loans. From FY22 to FY23, there is a 44.5% decrease in the total dollar amount approved in the 504 loan program. Though there has been a decrease in 504 lending activity, the 504 program continues to see higher numbers than its pre-pandemic numbers.

Similarly, the total number of 504 loans approved is declining, but the number of loans approved continues to be higher than pre-pandemic numbers. The program has seen a 49% decrease in the number of 504 loans approved. At the end of the first quarter of fiscal year 2022, almost 3,000 504 loans were approved. During the same time in fiscal year 2023, there were 1,500 504 loans approved.

Source:
SBA Weekly Lending Report 12/31/22