U.S. Small Business Administration Lending Tops $28 Billion in FY19
For most of us, 2019 won’t come to a close until December 31st. However, for several corporations as well as the Federal Government, October 1st marked the beginning of a new fiscal year. Among the agencies looking back at the year that was is the Small Business Administration, who recently released data regarding the number of loans it issued over the past year.
According to the SBA, it guaranteed more than $28 billion in loans during the last fiscal year, amounting to 63,000 loan approvals. While impressive, this is shy of the $30 billion the administration loaned throughout fiscal year 2018. Nevertheless the total dollar figures for the SBA’s 504 and Microloan programs were up for the year.
Once again the SBA’s flagship 7(a) loans program accounted for the vast majority of lending during FY19. These loans allow small businesses to borrow up to $5 million to use for working capital, buying equipment, purchasing land, and more. With over 52,000 7(a) loans approved, the total dollar figure for the year landed at $23.17 billion.
Meanwhile, as mentioned, the number of 504 loans issued were up for the year, growing 4.3% from the 2018 fiscal year. The 6,000 loans made under that program amounted to $4.9 billion. Lastly the SBA’s Microloan program also grew, approving more than 5,500 loans for a total of $81.5 million in funds. That not only marks a 7.5% increase over last year but also represents a new record high for the program.
In a statement regarding this year’s fiscal results, SBA Acting Administrator Chris Pilkerton attributed the demand for loans to the continued economic expansion, saying “A strong economy is powering America’s 30 million small businesses, and the SBA’s FY19 numbers bear that out.” He went on to explain, 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.”
As Pilkerton states, the SBA’s guaranteed loan results do suggest that fiscal 2019 was an economically strong year. Of course, with potential headwinds in the forecast, it will be interesting to see how FY20’s results compare. Regardless it’s always nice to know that the Small Business Administration is an option for entrepreneurs in need of working capital for their businesses.