SBA Witnesses Surge in Native Business Loans

In Fiscal Year 2023 (FY23), U.S. Small Business Administrator Isabel Casillas Guzman announced a significant milestone for the Small Business Administration (SBA), marking the delivery of $50 billion in capital, disaster relief, and bonding to small businesses and disaster-impacted communities nationwide. This achievement underscores the Biden-Harris Administration’s commitment to small business growth and equitable support.

The SBA saw a notable increase in lending through its microloan program and the flagship 7(a) Loan Program, its main channel for small business funding. This growth is part of the Administration’s broader efforts to promote equity, which has resulted in increased SBA lending to diverse business owners, including Black, Latino, Asian American, Pacific Islander and Native Hawaiian, Native American, women, and veterans in FY23.

Key FY23 achievements include a rise in both the number and value of 7(a) loans to small businesses across America, and a significant increase in small-dollar loans. The SBA has also made progress in addressing capital access gaps, especially for entrepreneurs from underserved communities. Since President Biden’s inauguration, the SBA has more than doubled the number and total dollar amount of loans to Black-owned businesses and achieved a record in loan distribution to Latino-owned businesses. Notably, loans to women-owned businesses, which had declined from 2016 to 2020, are increasing again under this Administration.

In FY23, there was a remarkable upsurge in support for Native American entrepreneurs. The SBA backed more than 500 loans to Native-owned small businesses, totaling $278 million. This represents a 70% increase in total loans and nearly a doubling of total loan dollars under the Biden-Harris Administration, highlighting a significant stride in empowering Native American business ownership and contributing to the economic growth of their communities.