Minnesota entrepreneurs received $956 million in SBA-backed loan dollars in 2022

SBA Minnesota Reports Increased Small Business Lending in FY22

MINNEAPOLIS –U.S. Small Business Administration (SBA)-backed loan programs supported guarantees for 178 Minnesota lenders totaling 1,864 loans and over $956 million for Minnesota small businesses in the 7(a) and 504 programs in Fiscal Year 2022 (FY22) ending September 30. 

The 7a Loan Program supported 1489 loans for $629,263,400 and the 504 Loan Program supported 375 loans for $326,931,000 across Minnesota in FY22. The 504 Program saw increase in loan dollars by 16% from FY21, an already historic year for the program. Minnesota also saw an increase of the share of guaranteed loan dollars and number of loans to American Indian, Asian and Pacific Islander, Black, and Hispanic borrowers as compared to FY21.

SBA Minnesota District Director Brian McDonald reflects on the strong partnerships SBA enjoys with lenders to support the small business ecosystem in Minnesota.

“The increased access to SBA loan programs for diverse populations in Minnesota is very promising.” said McDonald, “We couldn’t have achieved these numbers without the hard work and dedication to small business growth from our SBA lending partners. We are grateful for their support as they help small businesses start, grow, build, and expand across our state and we look forward to the continued partnership in the year to come.”

Nine active Minnesota SBA Microlenders made 207 loans in FY22, totaling over $3.2 million with an average loan size of $15,688.93 supporting 869 jobs statewide. In FY22, SBA Microlenders increased number of loans to 100% women-owned businesses by 12%. SBA Microlenders also increased number of loans to Asian and Black borrowers across the state, as compared to FY21.

“The uptick of SBA-backed loans indicates a healthy doubling down and belief by investors and community stakeholders that small businesses are essential for inclusive economic recovery and prosperity,” said SBA Great Lakes Regional Administrator Geri Aglipay. “More capital is flowing to American small businesses due to opportunities from historic bi-partisan policies created under the Biden Administration and the President’s commitment to strengthen equitable access to capital through SBA and SBA’s with no-cost resources and programs.”

National numbers are due to be released next week.

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.

About SBA-backed loan programs

 

The SBA guaranteed loan program helps small businesses get loans by working with lenders to provide loans to small businesses.  Loans guaranteed by the SBA range from small to large and can be used for most business purposes, including long-term fixed assets and operating capital.  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.  For more information about SBA’s loan programs, financial assistance, and other services, visit www.sba.gov.

Back to blog

Leave a comment

Please note, comments need to be approved before they are published.