SBA Summarizes 2020 Loan Activity
The U.S. Small Business Administration announced Fiscal Year 2020 summary loan data of the financial assistance provided through traditional loan program lending as well as aid provided via the CARES Act. Loans guaranteed through traditional SBA-backed lending programs exceeded $28 billion; however, enactment of the CARES Act dramatically increased loan volume guaranteed by the Agency: In FY20, the Paycheck Protection Program provided an additional 5.2 million loans worth more than $525 billion; the Agency’s Economic Injury Disaster Loan Program added another 3.6 million small business loans valued at $191 billion, as well as an additional 5.7 million EIDL Advances worth $20 billion.
“In response to the unprecedented challenges faced by small businesses this year, the Trump Administration provided more than three-quarters of a trillion dollars in financial assistance to support impacted small businesses. SBA lending data further reflects the extraordinary commitment this Administration has made to supporting entrepreneurs in underserved communities,” said Administrator Jovita Carranza.
“The SBA played a monumental role in supporting small businesses impacted by the COVID-19 pandemic, evidenced by the thousands of Paycheck Protection Program and Economic Injury Disaster Loans approved to urban and rural Montana businesses since March,” said Dan Nordberg, SBA Regional Administrator and National Director of Rural Affairs. “The SBA’s historic lending achievement is a testament not only to the dedicated public servants within the agency, but also to the grit of small business owners and entrepreneurs across the state. The SBA will continue advocating for small businesses and working with business owners and entrepreneurs as we navigate these challenging times.”
“When the COVID-19 pandemic impacted Montana’s small businesses, the SBA answered the call by leveraging all of the resources at our disposal, including 24,000 Paycheck Protection Program loans and 10,000 Economic Injury Disaster Loans that provided much needed funds to Montana small businesses, helping to keep Montana’s economy going during this difficult time,” said Brent Donnelly, SBA Montana District Director. “Like any great effort, a team of dedicated individuals was needed, and we at the SBA would like to thank Montana’s lenders, the small business owners, and our resource partners all continuing to work together for Montana.”
Highlights from the PPP include:
* 27% of the PPP loan dollars were made in low-and moderate-income communities which is in proportion to the percentage of population in these areas:
* More than $133 billion, or 25%, of PPP loans were approved for small businesses in historically underutilized business zones (HUBZones); and,
* Over $80 billion, or 15%, of total PPP dollars were approved to small businesses in rural communities.
Administrator Carranza further noted, “In addition to the tremendous amount of aid provided by the CARES Act via the PPP and EIDL programs, our regular loan programs showed solid year-over-year improvement, especially within our 504 and Microloan programs. SBA’s small but dedicated team of professionals punched far above its weight this year, building on last year’s lending numbers for traditional loans, while administering the largest and most consequential disaster response effort in modern history – all while overcoming unprecedented workforce disruptions.”