Small Dollar Lending and Lending to Underserved Entrepreneurs Continues to Rise as a Record 19 Million New Business Applications Filed Under Biden-Harris Administration
WASHINGTON, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 34 million small businesses, announced the Biden-Harris Administration has tripled SBA lending to Black-owned businesses while doubling small-dollar lending and lending to Latino- and women-owned small businesses. The new data comes as the United States reaches a record 19 million new business applications under the Biden-Harris Administration.
“Over the past four years more entrepreneurs than ever before have pursued the American dream of business ownership, and the SBA has been committed to matching this incredible wave of enthusiasm with the capital, market access, and resources small businesses need to start, grow, and thrive,” said SBA Administrator Guzman. “While there is more to do, the Biden-Harris Administration is working to level the playing field for underserved entrepreneurs, and we remain laser-focused on expanding access to opportunity and championing equity.”
Since the start of the Biden-Harris Administration, there have been 19 million new business applications with an average 443,000 filed each month – a rate 92% faster than the pre-pandemic average. This historic Small Business Boom has been driven by women and people of color, with data showing Black business ownership doubling since 2019 and women increasing business ownership at a pace nearly double the pace of men.
Since President Biden took office in 2021, SBA lending to historically underserved entrepreneurs has grown substantially. Compared to FY20, so far in FY24:
- Average monthly SBA lending to Black-owned businesses has tripled.
- Average monthly SBA lending to Latino-owned businesses has more than doubled.
- Average monthly SBA lending to women-owned businesses has doubled.
- Average monthly SBA small-dollar lending has doubled.
Having already achieved the first, second, and third strongest years of new business applications on record, the Biden-Harris Administration’s economy remains on track for its fourth consecutive year of historic business filings. The U.S. economy has grown more in the past four years than in any other four-year span in the last quarter century.
See here for additional lending data and more information on how the SBA under the Biden-Harris Administration has taken steps to increase access to capital in underserved communities.
- Black Lending: In FY24 so far, the average monthly loan count is 415, triple the average monthly loan count in FY20. Average loan volume is $124 million, more than double the average loan volume in FY20.
- Latino Lending: In FY24 so far, the average monthly loan count is 775, over double the average monthly loan count in FY20. Average loan volume is $261 million, double the average loan volume in FY20.
- Women Lending: In FY24 so far, the average monthly loan count is 1,255, double the average monthly loan count in FY20. Average loan volume is $444 million, a two-thirds increase over average loan volume in FY20.
- Small-Dollar Lending: In FY24 so far, the average monthly loan count is 3,110, double the average monthly loan count in FY20.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Christine Saah Nazer U.S. Small Business Administration 202-756-0304 Christine.saahnazer@sba.gov Han Nguyen U.S. Small Business Administration 202-756-0304 Han.Nguyen@sba.gov Rebecca Galanti U.S. Small Business Administration 202-756-0304 rebecca.galanti@sba.gov
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