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Historic Year in FY 2021 Saw Robust Use of SBA Traditional Lending Programs in Massachusetts

In Massachusetts, 7A total gross dollar amounts increase by 69%; 504 loan approvals increase by 27% with total dollar amounts up 28%
Release Date: 
Wednesday, November 17, 2021
Release Number: 
Contact:, 202-853-5792

BOSTON – The U.S. Small Business Administration announced the agency reached $44.8 billion in funding to small businesses through more than 61,000 traditional loans for fiscal year (FY) 2021. as aid provided via the CARES Act.

Nationally, fiscal year 2021 traditional lending data highlights include:

  • $36.5 billion in 7(a) loans: Nearly 52,000 7(a) loans worth more than $36.5 billion were provided to small businesses. Lenders reported that minority business owners received nearly $11 billion in 7(a) loans or 30% of the SBA’s total 7(a) portfolio. Data also shows that women-owned businesses received nearly $5 billion in FY 21, while veteran-owned businesses received $1.2 billion.


  • $8.2 billion in 504 loans: Working with authorized Certified Development Companies (CDCs), the SBA’s 504 program delivered 9,600 loans worth more than $8.2 billion to small businesses, fully exhausting funding authority for the first time in the program’s history. Minority business owners received nearly $1.88 billion in loans -- 23% of the total 504 portfolio. In FY 21, the program also provided over $712 million in lending to women-owned businesses and increased its support of rural small businesses by nearly 33%.


  • $71.8 million in microloan funding: In fiscal year 2021, $71.8 million in microloan funding went to nearly 4,400 small businesses. Forty-one percent of those loans went to underserved communities, including Hispanic-owned and Black-owned small businesses.


Massachusetts District Office Capital Programs Highlights

In Massachusetts, SBA lending saw an increase of 43% in combined 7A/504 flagship lending year-over-year.  Total dollar amount in millions, increased from $677,599 to $968,788 (including the $281 million in third party loans).  Lenders and small businesses benefited from SBA lending incentives leading to more resources for the road to recovery and growth.

The largest area of growth came in the 69% increase in the gross dollar amount for the 7(a) loan program from the previous year ($280.3 to 480.2 million).  The 504 loan program also saw a healthy increase of 28% in the dollar amount approved, along with an increase in loan approvals by 27%.   

Underserved categories represented 19.9% of the total combined 7A and 504 lending – increasing by 29% from the previous year.  African American Owned increased 210% from 20 approvals in 2020 to 62 approval in 2021.  Asian Owned increased 52% from 73 approvals in 2020 to 111 in 2021.  Lending to Women also increased by 12% from 201 in 2020 to 225 in 2021.

“Collectively, including 7(a), 504 and microloans, the SBA with the help of over 113 different lenders, supported capital to 1,533 small businesses for $970.47 million in Massachusetts,” said Robert H. Nelson, SBA Massachusetts District Director.  “We thank all of our partners and friends for working with the SBA to ensure small businesses get the access to capital they need to start, grow, expand and recover.” 

The flagship 7(a) Loan Guaranty Program approved 1,105 loans in Massachusetts for a total of more than $480.2 million supported by a network of 113 lenders.

  • Eastern Bank was the #1 SBA 7(a) lender in Massachusetts for the 13th year in a row with 185 loans totaling $35.73 million and the top third party 504 lender with 30 loans totaling $31.16 million.  
  • TD Bank ranked as the second highest producer of 7(a) loans with 71 approvals totaling $22.86 million.
  • Webster Bank ranked third with 66 loans totaling over $37.36 million.


The 504 Loan Program approved 342 loans, supporting more than $207.19 million.

  • Bay Colony Development Corp. was SBA’s highest producer of 504 loans in Massachusetts with 128 loans totaling $79.16 million.
  • Granite State Economic Development Corp. ranked second in volume with 105 projects totaling $57.83 million.


The SBA Microloan Program, through nine microloan intermediaries, approved 86 loans totaling $1.87 million. Microloans provide up to $50,000 to help small businesses start-up and expand; In Massachusetts, an average microloan was $21,859. 

  • Common Capital was the #1 microlender for volume of loans and dollar amount, approving 26 loans totaling $693,319.
  • South Eastern Economic Development Corp. ranked second with 16 approvals totaling $445,000
  • North Central Massachusetts Development Corp. ranked third with 11 approvals totaling $187,700.

The SBA Surety Bond Guarantee Program, through eleven surety companies, approved 144 bonds totaling $112 million.  Surety bonds help small businesses win contracts by providing the customer with a guarantee that the work will be completed. Many public and private contracts require bid, performance, and payment surety bonds, which are offered by surety companies.

SBA Massachusetts District Office will hold its’ Annual Meeting virtually this year to recognize lenders on Friday, December 10th, 2021.  For more information, please visit:



About the 7(a) and 504 Loan Programs
The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital. The CDC/504 loan program helps small businesses acquire fixed assets to promote economic development in the form of long-term fixed rate financing for fixed assets on reasonable terms. Under this program, the SBA authorizes CDCs (Certified Development Companies) to provide financing to small businesses with the help of third-party lenders (typically banks). The maximum loan amount is generally $5 million; however, certain eligible energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each.


About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. 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