The U.S. Small Business Administration allocated far more 7(a) and 504 loans in FY 2021 than the previous 12 months, according to recently released SBA data.
Increases in 7(a) lending occurred across the Upper Midwest, according to the recently released report, and came as the federal government continued to allocate nearly $800 billion in loans through the Paycheck Protection Program:
- Montana: $158.92 million, up from $76.93 million in 2020.
- Iowa: $197.21 million, up from $174.93 million in 2020.
- Illinois: $1.13 billion, a jump from $869 million in 2020.
- Indiana: $645 million, up from $453.57 million last year.
- Michigan: $1 billion, up from $619.92 million in 2020.
- Minnesota: $969 million, an increase from $596 million in 2020.
- North Dakota: $85.37 million, nearly doubling the $43.29 million in 2020.
- South Dakota: $77.75 million, a jump from $52.24 million the previous year.
- Wisconsin: $774.85 million, an increase from $458.65 million in 2020.
- Wyoming: $62.47 million, up from $42.1 million last year.
Those numbers reflect national increases: Approximately $36.5 billion in 7(a) loans and $8.2 billion in 504 loans were given to small businesses in FY 2021 — increases from $22.5 billion and $5.8 billion in FY 2020, respectively. In July, the SBA reported that fiscal year-to-date 7(a) volume topped $20.95 billion, 34 percent higher than the same period last year. This year’s pace, as of July, was also ahead of fiscal 2017, when the administration guaranteed a record $25.4 billion in loans. SBA Minnesota District Director Brian McDonald noted that traditional SBA-backed lending statewide increased by nearly 60 percent this year and 80 percent compared to fiscal year 2019.
“While progress has been made, our data also tells a deeper story: historic inequities in accessing capital persist, and we must do more to lower the barriers of entry to opportunity for all our entrepreneurs,” said SBA Administrator Isabella Casillas Guzman. “We will continue to build on our impactful programs to meet small businesses where they are and connect them with the resources needed to thrive.”