July 18, 2023
SBA Hot Topic Tuesday – 7(a) Lending Surpasses the Previous Four Years
As of June 30, 2023, SBA has approved 40,637 7(a) loans, totaling $19.28 billion. $14 billion of the total dollar amount is the SBA guaranty amount. Compared to the same time last year, the 7(a) dollar amount has increased by more than $1 billion. The total number of loans this fiscal year is higher than last year by more than 6,600 loans, and it is the largest number of approved 7(a) loans since fiscal year 2018.
According to SBA data, 4,434 504 loans have been approved worth $4.77 billion at the end of the third quarter of FY23. This fiscal year, 504 lending has decelerated following multiple record-breaking years in a row. Nonetheless, 504 lending remains stronger than before after its increased importance throughout the pandemic.
The 7(a) loan program budget for Fiscal Year 2023 is $35 billion, and the Fiscal Year 2023 budget for the 504 loan program is $9 billion. Considering that the final quarter of the fiscal year has already begun, 7(a) and 504 funding is unlikely to be exhausted and should be available through September 30, 2023.
SBA’s lending data that is available has become more expansive. More than three decades of monthly and yearly lending statistics can be traced back to 1991. The SBA data can be broken down by lender, state, city, county, district office, and congressional district. Data can be separated by third party lenders and their states, cities, counties, district offices, and congressional districts. There is also separate data for CDC lending. All the current information is as of June 30, 2023.