Historic Year in FY 2021 Saw Robust Use of SBA Traditional Lending Programs in Massachusetts

The U.S. Small Business Administration announced the agency reached $44.8 billion in funding to small businesses through more than 61,000 traditional loans for fiscal year (FY) 2021. as aid provided via the CARES Act.

Nationally, fiscal year 2021 traditional lending data highlights include:

• $36.5 billion in 7(a) loans: Nearly 52,000 7(a) loans worth more than $36.5 billion were provided to small businesses. Lenders reported that minority business owners received nearly $11 billion in 7(a) loans or 30% of the SBA’s total 7(a) portfolio. Data also shows that women-owned businesses received nearly $5 billion in FY 21, while veteran-owned businesses received $1.2 billion.

• $8.2 billion in 504 loans: Working with authorized Certified Development Companies (CDCs), the SBA’s 504 program delivered 9,600 loans worth more than $8.2 billion to small businesses, fully exhausting funding authority for the first time in the program’s history. Minority business owners received nearly $1.88 billion in loans — 23% of the total 504 portfolio. In FY 21, the program also provided over $712 million in lending to women-owned businesses and increased its support of rural small businesses by nearly 33%.

• $71.8 million in microloan funding: In fiscal year 2021, $71.8 million in microloan funding went to nearly 4,400 small businesses. Forty-one percent of those loans went to underserved communities, including Hispanic-owned and Black-owned small businesses.