The rise of lending to Black-owned businesses and underserved communities by the SBA
The SBA has set records with lending and assistance during COVID-19 relief to aid small business recovery and growth.
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The U.S. Small Business Administration (SBA)'s Eastern Pennsylvania District acknowledged compelling loans to small Black-owned businesses and underserved communities have increased.
This increase has led to job creation and entrepreneurial growth across the region.
"As we celebrate Black Business Month, we are proud to announce that the number of lenders, who have made a loan to Black-owned businesses located in Eastern Pennsylvania, has increased by nearly 44% over the same period last year. Loan volume to Black-owned businesses is over 111% in the number of loans and over 231% in the dollar amount of loans approved (72 loans for $26.3M) over the prior fiscal year," said Director Steve Dixel, SBA Eastern Pennsylvania District.
According to the SBA, across the 40 counties of the Eastern Pennsylvania District, the SBA 7a loan program made more loans to underserved communities.
The breakdown of the increases is as follows: 105.9% more loans to Hispanic-owned small businesses (70 loans for $20.3M), 100% more loans to American Indian-owned small businesses (4 loans for $5.8M) and 1.2% more loans to Asian-American/Pacific Islander-owned small businesses (85 loans for $80.9M).
"In traditionally underserved markets, small businesses are accessing vital capital essential to their success in our communities. SBA lending programs play an important role in helping small businesses to start, grow and succeed. I am proud of our District team's work to engage lenders and the positive trends we see in SBA lending," Dixel said.
Thanks to Administrator Isabella Casillas Guzman's leadership, the SBA has made access to capital for business owners in underserved communities a primary target. The goal is to lower barriers for entrepreneurs, build on impactful programs, and connect small businesses with the resources needed to thrive.
Last year, the SBA set a record with the number of traditional loans to small businesses. This is in addition to the $1.1 trillion in COVID-19 relief to aid the nation's economic recovery and growth.
The aid went a long way toward helping the small businesses most heavily impacted by the pandemic.
The SBA offers seven types of loans. Standard, Small Loan, SBA Express, Export Express, Export Working Capital, International Trade, Preferred Lenders, Veterans Advantage and CAPLines.
For a complete list and more information about each type of loan, visit: https: //www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans
SBA's website also guides future business owners on how to create a business with a 10-step link. Their website is also divided into 'Browse business topics' with links to 'Plan your business,' 'Launch your business,' 'Manage your business,' and 'Grow your business.' And lastly 'How we help small businesses.' Which also has 'Free business counseling,' 'SBA-guaranteed business loans,' 'Home & business disaster loans,' and 'Federal government contracting.'