The U.S. Small Business Administration provided fiscal year 2020 summary loan data of the financial assistance provided through traditional loan program lending as well as aid provided via the CARES Act. Loans guaranteed through traditional SBA lending programs exceeded $28 billion; however, the enactment of the CARES Act dramatically increased loan volume guaranteed by the agency. In fiscal year 2020, the Paycheck Protection Program (PPP) provided an additional 5.2 million loans worth more than $525 billion while the agency’s Economic Injury Disaster Loan (EIDL) program added another 3.6 million small business loans valued at $191 billion in addition to 5.7 million EIDL Advances worth $20 billion.
“In response to the unprecedented challenges faced by small businesses this year, the Trump administration provided more than three-quarters of a trillion dollars in financial assistance to support impacted small businesses. SBA lending data further reflects the extraordinary commitment this administration has made to supporting entrepreneurs in underserved communities,” Jovita Carranza, an administrator for the SBA, said.
Highlights from the PPP include:
- 27% of the PPP loan dollars were made in low-and moderate-income communities, which is in proportion to the percentage of the population in these areas.
- More than $133 billion, or 25%, of PPP loans were approved for small businesses in historically underutilized business zones (HUBZones).
- More than $80 billion, or 15%, of total PPP dollars were approved to small businesses in rural communities.
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“In addition to the tremendous amount of aid provided by the CARES Act via the PPP and EIDL loan programs, our regular loan programs showed a solid year-over-year improvement, especially within our 504 and microloan programs,” Carranza said. “SBA’s small but dedicated team of professionals punched far above its weight this year, building on last year’s lending numbers for traditional loans while administering the largest and most consequential disaster response effort in modern history — all while overcoming unprecedented workforce disruptions.”
In fiscal 2020, the 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 dollars going to more than 5,800 small businesses. Thirty-four percent of the microloans made in fiscal 2020 went to Black-owned small businesses.
Lenders reported that minority business owners received $7.5 billion in combined 7(a) and 504 lending, or 27% of the SBA’s loan portfolio. Further reported data shows the SBA’s 7(a) lending to women-owned businesses was nearly $2.7 billion in fiscal 2020 while lending from the 504 loan program to women-owned businesses was more than $522 million. Additionally, loans to veterans totaled nearly $835 million for the 7(a) and 504 programs.
“Our 504 and microloan programs noticeably increased from last year. The 504 program grew 17.5% while the microloan program had another record year with a 4.3% increase in small business lending. Both loans are designed to create jobs and grow small businesses in communities across the country. SBA continues to create and expand opportunities for America’s entrepreneurs,” William Manger, association administrator for the SBA’s office of capital access, said.
“It was a historic year for the SBA’s disaster program as we approved and disbursed more than three times as many funds for the COVID-19 EIDL program ($211 billion) as we have for all disasters combined in the agency’s 67-year history ($67 billion),” James Rivera, associate administrator for the SBA’s office of disaster assistance, said. “This was also the first time in SBA history that the agency had the statutory authority to declare a pandemic and make disaster loans. SBA took swift action to work with governors, and within a matter of days, the agency issued disaster declarations to all 50 states, five territories and the District of Columbia.”
The SBA’s office of investment and innovation licensed 26 small business investment companies (SBICs) with $2.1 billion in private capital during fiscal 2020. This was a 44% increase in the number of new licensees and a 72% increase in private capital from new licensees compared with fiscal 2019. The improvement was due in large degree to eliminating procedural delays and unnecessary (duplicative) clearances. The combined private capital and SBA-backed funds now total $32 billion, the highest mark in the history of the SBIC debenture program. One additional highlight of the SBIC program was the awarding of the first license in nearly two decades to a majority-minority owned and minority operated SBIC in Puerto Rico.
“2020 marked a significant improvement in our execution capabilities as compared to 2019. Our pipeline of applicants looks strong and we anticipate continued success in supporting America’s small businesses in this time of difficulty,” Donald DeFosset III, associate administrator for the SBA’s office of investment and innovation, said.
