SBA Hot Topic Tuesday — SBA Small Business Lending Reflects Strong Economic Trends

October 15, 2019

By Caity Witucki
Contributing Editor, SBA Hot Topic Tuesday

SBA Hot Topic Tuesday — SBA Small Business Lending Reflects Strong Economic Trends

During a connect call presentation last Tuesday, the SBA announced the number of loans approved in the 2019 fiscal year. According to the Office of Capital Access, SBA’s 7(a) loan program saw an 8.7% decline in approved loans while the 504 program had another year of increased performance.

In the 2019 fiscal year, the SBA approved approximately 52,000 7(a) loans, totaling $23.17 billion. The 504 loan program made more than 6,000 loans for a total dollar amount of more than $4.9 billion.

SBA officials said they were not surprised that 7(a) loan performance was down and that they had anticipated the trend.

“With a strong economy and historically solid small business optimism, we know that 7(a) lenders are making loans conventionally without the SBA guarantee,” says an Associate SBA Administrator.

According to SBA officials, the decline in 7(a) lending does not indicate a downturn in the national economy.

“A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out,” says SBA Acting Administrator, Chris Pilkerton. “When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee. Our 504 and Microloan programs continued to grow from last year, as all of these loans are designed to create jobs and grow all small businesses in communities across the country. We continue to be proud that the SBA is here to help America start, grow, and expand opportunities for entrepreneurs.”