SBA lending programs top $28B

The U.S. Small Business Administration announced Fiscal Year (FY) 2020 summary loan data of the financial assistance provided through traditional loan program lending as well as aid provided through the CARES Act.

Loans guaranteed through traditional SBA lending programs exceeded $28 billion; however, enactment of the CARES Act dramatically increased SBA guaranteed loan volume. In FY ‘20, which ended Sept. 30, the Paycheck Protection Program (PPP) provided an additional 5.2 million loans worth more than $525 billion.

The SBA’s Economic Injury Disaster Loan (EIDL) program added another 3.6 million small business loans valued at $191 billion, as well as an additional 5.7 million EIDL Advances worth $20 billion.

Altogether, SBA provided $750 billion in financial assistance in FY ‘20 to support and stabilize small businesses.

“Similar to the rest of the country, West Texas experienced unprecedented challenges this year. However, our economy is still standing strong and growing,” said SBA West Texas District Director, Calvin Davis. Our SBA employees and resource partners, namely the Northwest Texas Small Business Development Center (SBDC) Network and SCORE, provided invaluable counseling, training, and direct technical support to small businesses.

“I want to especially acknowledge the extraordinary efforts of the SBDC who helped West Texas entrepreneurs attain over $100 million and helped create and retain nearly 10,000 jobs. I also acknowledge and greatly appreciate all the financial lending partners who quickly stepped up and served the essential role of providing the initial Paycheck Protection Program (PPP) loan funds. The support of all of our partners plus the expert assistance and hard work of our dedicated SBA employees resulted in the critical delivery of funding and they continue to serve the local small business community in a stellar manner.”

David added that because of the availability of PPP and EIDL financial assistance coupled with the SBA traditional lending programs, SBA was responsible from making more loans to West Texas entrepreneurs in one month than it made in over the past 15 years.

In FY ‘20 a total of 37,515 combined loans worth $3.5 billion were provided to help support and stabilize West Texas Small businesses. The breakdown of this $3.5 billion in West Texas includes a total of 26,409 PPP loans worth $2.679 billion. Economic injury Disaster Loans totaled 10,903 worth $697 million. Traditional 7(a) and 504 loans totaled 176 loans worth $134.2 million.

“SBA’s small but dedicated team of professionals punched far above its weight this year, building on last year’s lending numbers for traditional loans, while administering the largest and most consequential disaster response effort in modern history – all while overcoming unprecedented workforce disruptions,” said SBA Administrator Jovita Carranza.

For more information about SBA’s loan programs, financial assistance, and other services, visit www.sba.gov.