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SBA Lending Reaches Historic $1 Billion Milestone in SBA Seattle District Through Signature Lending Programs

In fiscal year 2021, 7(a) and 504 loan programs nationally provided more than 61,000 loans valued at $44.8 billion, but gaps in access to capital for underserved communities remain
Release Date: 
Friday, October 29, 2021
Contact: 
melanie.norton@sba.gov | 206-604-2957

SEATTLE – The U.S. Small Business Administration (SBA) Seattle District announces nearly $1.3 billion in funding went to small businesses through 1,701 traditional loans for fiscal year (FY) 2021 in the SBA Seattle District, which serves Washington state (minus the four counties in southwest Washington served by the Portland District) and northern Idaho. Nationally, $44.8 billion through more than 61,000 loans went to small businesses.

"We've been striving for the $1 billion milestone in our district for a few years and I'm ecstatic to see us both achieve and exceed that goal during Fiscal Year 2021," SBA Seattle District Director Kerrie Hurd said. "With an SBA guarantee, many more local businesses gained access to financing that otherwise wouldn't be attainable. We're grateful to our local lending partners for working together with us to recover and grow the economy through the strength of small businesses. And, for making us one of the Top 10 markets in the nation for SBA lending."

“In the midst of a once-in-a-generation pandemic, the SBA’s mission-driven team delivered a record number of SBA’s traditional loans to our nation’s small businesses – in addition to more than $1.1 trillion in COVID-related relief since the start of the pandemic,” SBA Administrator Isabella Casillas Guzman. “While progress has been made, our data also tells a deeper story:  historic inequities in accessing capital persist, and we must do more to lower the barriers of entry to opportunity for all our entrepreneurs. We will continue to build on our impactful programs to meet small businesses where they are and connect them with the resources needed to thrive.”

“The SBA continues to make headway in helping small businesses access much-needed capital, but much more work remains to be done,” said Patrick Kelley, Associate Administrator for the Office of Capital Access. “Our flexible, low-interest 504 loan program grew in loan volume by 41%, and the SBA team is already at work for fiscal year 2022 to support job and entrepreneurial growth across the country.”

 

Overall Funding and Impact:

Under Administrator Guzman’s leadership, the SBA has made it a priority to increase access to capital for business owners across the nation, particularly from traditionally underserved communities. Fiscal year 2021 traditional lending data of note includes:

  • $36.5 billion in 7(a) loans: Nationally, nearly 52,000 7(a) loans worth more than $36.5 billion were provided to small businesses. In the Seattle District, it was 1,486 loans worth $1.1 billion.

Lenders reported that minority business owners received nearly $11 billion in 7(a) loans or 30% of the SBA’s total 7(a) portfolio. In the Seattle District, the percentage was higher at 38.7% valued at $425.7 million. Data also shows that women-owned businesses received nearly $5 billion in FY 21 ($187.4 million in the Seattle District), while veteran-owned businesses received $1.2 billion (nearly $43 million in the Seattle District).

  • $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. In the Seattle District, it was 215 loans worth $197 million.
  • $71.8 million in microloan funding: In fiscal year 2021, $71.8 million in microloan funding went to nearly 4,400 small businesses. In the Seattle District, it was 104 loans worth $1,102,022.

Forty-one percent of those loans went to underserved communities, including Hispanic-owned and Black-owned small businesses. In the Seattle District, 54% of microloans went to underserved communities including Asian-owned, Hispanic-owned and Black-owned small businesses.

 

Addressing Equity Challenges That Persist Throughout the Small Business Economy:

Despite significant progress in its traditional lending programs, the agency is acutely aware of gaps that persist for certain communities in accessing capital. The SBA’s existing loan programs serve an important role in credit markets for small businesses, particularly those with collateral and demonstrated revenue that are denied a loan by a commercial bank or often lack relationships with established lenders.

During the past five years, loans issued to the smallest borrowers through the SBA-backed 7(a) loan, Express, and Community Advantage decreased by over 45%. However, the decline in the proportion of small-dollar loans is not unique to SBA loan portfolios. Federal Deposit Insurance Corporation (FDIC) data on commercial small business lending by regulated banks shows an overall 3% decline (translating to over 600,000 loans) in the proportion of loans under $100,000. This lack of small-dollar loan appetite from lenders has led to disproportionate impacts on minority business owners. Firms with non-Hispanic Black ownership and firms with $100,000 or less in revenues were only half as likely as firms with non-Hispanic white ownership to obtain bank funds (23%, 24%), and Latino-owned firms were similarly lower (34%).

Addressing the systemic gap in access to capital for the smallest and underserved businesses has been Administrator Guzman’s north star and will continue to be a top SBA priority in FY 22 and beyond.

 

The following is a summary of local and national loan totals:

SBA Loan Summary FY 2021
National and SBA Seattle District Loan Numbers and Volume
Note: This does not include SBA COVID Relief programs

 

SBA Seattle District

 

Loan Numbers

Loan Volume

7(a) Loans

1,486

$1.1 billion

504 Loans

215

$197 million

Microloans

104

$1.1 million

Total SBA Lending

1,805

$1.3 billion

 

 

National

 

Loan Numbers

Loan Volume

7(a) Loans

52,000

$36.5 billion

504 Loans

9,600

$8.2 billion

Microloans

4,400

$71.8 million

Total SBA Lending

66,000

$44.8 billion

 

 

 

 

For more information about SBA loan programs and financial assistance, visit www.sba.gov/loans.


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 www.sba.gov. The Seattle District serves Washington state and northern Idaho with office locations in Seattle and Spokane.