WASHINGTON – The U.S. Small Business Administration (SBA) announced Fiscal Year 2020 summary loan data. Loans guaranteed via traditional SBA lending exceeded $28 billion. The CARES Act, however, dramatically increased the agency’s loan volume – the Paycheck Protection Program (PPP) provided an additional 5.2 million loans worth more than $525 billion, and the Economic Injury Disaster Loan (EIDL) Program added another 3.6 million loans valued at $191 billion, as well as 5.7 million EIDL Advances worth $20 billion.
In FY20, SBA’s flagship 7(a) loan program made approximately 42,000 7(a) loans totaling $22.55 billion. The 504 Loan Program had another year of increased performance, with more than 7,000 loans made for a total dollar amount of more than $5.8 billion. The Microloan Program, which specifically helps businesses in underserved communities, achieved a second straight record year performance with nearly $85 million going to over 5,800 small businesses. Thirty-four percent of Microloans made in FY20 went to Black-owned small businesses.
Lenders reported minority business owners received $7.5 billion in combined 7(a) and 504 lending, or 27% of the SBA’s loan portfolio. Data shows SBA’s 7(a) lending to women-owned businesses was nearly $2.7 billion in FY20, while 504 lending to women was over $522 million. Loans to veterans totaled nearly $835 million for the 7(a) and 504 programs.
“It’s also important to point out that 27% of PPP loan dollars were made in low-and moderate-income communities, which is in proportion to the population diversity in these areas,” said SBA Mid-Atlantic Regional Administrator Steve Bulger. “More than $133 billion, or 25%, of PPP loans were approved for small businesses in HUBZones; and, more than $80 billion, or 15%, of total PPP dollars were approved to small businesses in rural communities.”
“In the Mountain State PPP, EIDL, and traditional SBA loan programs significantly helped small businesses in Fiscal Year 2020 and during the pandemic,” said SBA West Virginia District Director Karen Friel. “West Virginia small businesses received 18,068 Paycheck Protection Program loans for $1,804,551,389 and 7,943 EIDL loans for $423,811,700,” stated Friel. “In addition, there were 177 7(a) loans for $48,775,900, four 504 loans for $945,000, and seven microloans for $213,000,” noted Friel.
Also, of note was the SBA’s Office of Investment and Innovation which licensed twenty-six (26) Small Business Investment Companies (SBICs) with $ 2.1 Billion in Private Capital during FY20. This was a 44 % increase in the number of new licensees and a 72% increase in private capital from new licensees compared to FY2019. The improvement was due in large degree to eliminating procedural delays and unnecessary (duplicative) clearances. The combined private capital and SBA backed funds now totals $32 billion, the highest in the history of the SBIC Debenture Program.
For more information about SBA’s loan programs, financial assistance, and other services, visit www.sba.gov.