Press release 23-69

SBA Data Show Major Increase in Loans to Black-Owned Businesses under Biden-Harris

The number and share of SBA-backed 7(a) and 504 loans going to Black-Owned businesses more than doubled since 2020

WASHINGTON – Administrator Isabella Casillas Guzmanhead of the U.S. Small Business Administration (SBA), joined Congressman Steven Horsford at the 2023 Congressional Black Caucus Foundation’s Annual Legislative Conference today to announce new data showing the rate of SBA-backed loans going to Black-owned businesses has more than doubled under the Biden-Harris Administration. 

“Black businesses are helping to power a nationwide small business boom that is creating jobs, advancing equity in communities across America, and uplifting our economy,” said Administrator Guzman. “Today’s benchmark loan numbers show our work under President Biden’s Investing in America agenda making inroads to support more of America’s Black small business owners. Despite these gains, we still have a long way to go. We continue to push forward with long overdue and transformational reforms to our lending and investment programs that will raise the bar of equity and opportunity even further for all of America’s small businesses."   

“Economic mobility and success are vital to achieving the American dream, but for far too long small businesses owned by Black Americans have faced roadblock after roadblock on that path,” said Congressman Steven Horsford (NV-04), Chair of the Congressional Black Caucus. “I applaud the efforts of the Biden Administration and the SBA to help Black small business owners succeed and grow. The growth in lending to the Black community and other underserved groups is promising news and is a result of direct efforts to reach more communities.” 

The SBA has backed more than 4,300 SBA loans to Black-owned businesses so far in FY 23 through the 7(a) and 504 programs. Total loan dollars ($1.3 billion) and overall share of SBA approved loans (7.5%) to Black-Owned businesses have also more than doubled since 2020. 

SBA 7(a) and 504 Loans to Black-owned Businesses  FY 2017  FY 2018  FY 2019  FY 2020  FY 2021  FY 2022  FY 2023 YTD 
Total loans  2,511   2,701   2,476   1,718   2,741   3,630   4,387  
Dollars (millions)  $671   $780   $784   $592   $1,067   $1,148   $1,308  
Share (% of loans)  3.7%  4.1%  4.3%  3.5%  4.5%  6.4%  7.5% 

Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, with 13.1 million new business applications filed since President Biden took office—a rate 65% faster than the pre-pandemic average.  

SBA has taken major steps aligned with the President’s Investing in America agenda to increase access to its core capital programs, including among Black entrepreneurs. These include:  

SBA’s 7(a) Loan is SBA’s primary business loan program. It provides guaranties to lenders that support financing to small businesses for a range of uses, up to $5 million. SBA’s 504 Loan specifically provides long-term, fixed rate financing up to $5.5 million for major fixed asset purchases by small businesses. 

The SBA guarantee enables lenders to offer credit to businesses that otherwise would not qualify. SBA lenders must adhere to interest rate caps and fee restrictions; they often help borrowers by providing longer repayment periods that would otherwise be unavailable. 

Complete SBA lending data for FY23 will be available after the end of the fiscal year. The public can access dashboards updated daily reflecting SBA lending totals by demographic group, industry, and other breakdowns at SBA Office Of Capital Access - Dataset - U.S. Small Business Administration (SBA) | Open Data.  


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    

Related programs: 7(a), CDC/504

Media contacts

U.S. Small Business Administration