The Small Business Administration reported a significant increase in financing support for small businesses and disaster-affected areas during the fiscal year ending Sept. 30. The agency backed a total of $56 billion in financing, marking a 7% increase from the previous year. This growth was primarily attributed to a rise in smaller loans, as highlighted in the agency's annual Capital Impact report.
In a notable milestone, the SBA distributed over 100,000 financings to small businesses for the first time since 2008, representing a 22% increase from fiscal 2023 and a 50% surge over 2020. While the SBA does not directly provide loans, except in disaster-related cases, it collaborates with lenders to facilitate the distribution of loans to small businesses, offering more favorable rates compared to traditional loans.
