SBA-backed loans to women-owned small businesses increased by 70% under the Biden-Harris Administration
WASHINGTON, Oct. 25, 2023 (GLOBE NEWSWIRE) — Today, Administrator Isabel GuzmanThe head of the US Small Business Administration (SBA) and President Biden’s Cabinet voice for America’s more than 33 million small businesses celebrated the 35th anniversary of the Women’s Business Ownership Act of 1988 (HR 5050) by announcing new SBA-supported information. Loans to women-owned small businesses increased nearly 70 percent under the Biden-Harris Administration, with total loans to women-owned businesses totaling $5.1 billion in FY23.
The Women’s Business Ownership Act of 1988 helped change the way women do business in America—most importantly by allowing them to start their own businesses. The increase in SBA lending to women-owned businesses reflects the leading role women entrepreneurs play in small business growth: women-owned firms now employ more than 10 million people and add more than $2 trillion to America’s GDP annually, and women-owned employer firms are growing more rate three times from their male counterparts.
“Women-owned small businesses are helping to fuel America’s historic small business boom, and the Biden-Harris Administration remains committed to ensuring women receive the capital and resources they need to build sustainable businesses and create jobs to support our economy.” said SBA Administrator Isabel Guzman. “Reforms to the SBA’s loan programs fulfill this commitment, as new SBA data show that SBA loans to women-owned businesses have increased by 70 percent under this administration. Bidenomics is about growing our economy equitably, and in the last fiscal year, women received $5.1 billion in SBA-backed loans to start and grow their businesses. We celebrate these achievements while redoubling our commitment to continue our transformation to ensure women have the capital they need to fully participate and contribute to our economy.”
HR 5050 repealed laws requiring women to have a male relative co-sign a business loan, paving the way for the SBA to lend directly to women entrepreneurs. The legislation also created the National Women’s Business Council and provided SBA core funding to launch Women’s Business Centers (WBCs), which today are an integral part of SBA’s network of resource partners – providing capital, training, and mentoring to women entrepreneurs throughout the United States.
In a tightening credit environment, SBA’s loan programs provide a market solution by offering government-backed loans at favorable terms to fill market gaps and provide small businesses with the financing they need. During the Biden-Harris Administration, the number of loans and total loan dollars increased after steadily declining during the previous administration. Since FY20, SBA loans have been made to majority women-owned small businesses A 70 percent increase. In the 23rd fiscal year, the total loan amounted to USD 5.1 billion dollarsgrows with More than 60 percent under this administration. A majority of women-owned businesses now account for more than one-fifth of SBA’s loan portfolio, up from 15.6 percent in FY20.
|
SBA 7(a) & 504 Loans to Women-Owned Businesses |
FISCAL 2017 |
2018 year |
2019 year |
FISCAL 2020 |
2021 year |
FY 2022 |
FY 2023 |
|
General loans |
12,129 |
11,336 |
10,111 |
7,715 |
10,240 |
10,652 |
13,059 |
|
Dollars (in millions) |
4057 dollars |
3830 dollars |
3777 dollars |
3208 dollars |
5718 dollars |
$4,695 |
5181 dollars |
|
Share (percentage of loans) |
17.7% |
17.1% |
17.4% |
15.6% |
16.6% |
18.7% |
21.3% |
Under the Biden-Harris Administration, SBA has taken significant steps in line with the President’s Investing in America agenda to increase access to key capital programs, including for women entrepreneurs. These include:
The SBA’s 7(a) loan is the SBA’s primary business loan program. It guarantees up to $5 million to lenders supporting small business financing for working capital and a variety of other purposes. SBA’s 504 loans provide up to $5.5 million in long-term, fixed-rate financing for the purchase of capital equipment by small businesses.
An SBA guarantee allows lenders to offer loans to small businesses that would otherwise not qualify. SBA lenders must adhere to interest rates and payment limits; they often help borrowers by providing longer repayment terms that would otherwise not be possible.
###
About the US Small Business Administration
The US Small Business Administration helps fuel America’s desire to own a business. As the only resource and voice for small businesses backed by the strength of the federal government, the SBA provides entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses or restore declared financial standing. disaster. It provides services through an extensive network of SBA field offices and partnerships with public and private organizations. For more information, visit sba.gov.
CONTACT: Christine Saah Nazer U.S. Small Business Administration (202) 756-0304 [email protected]
