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SBA-Backed Loans to Black-Owned Businesses Surge, Exceeding $1.3 Billion in FY 23
At the 2023 Congressional Black Caucus Foundation's Annual Legislative Conference., SBA Administrator Isabella Casillas Guzman and Congressman Steven Horsford unveiled new data that confirms both our forecast and the milestone achieved: the rate of SBA-backed loans to Black-owned businesses has more than doubled, signifying a substantial increase in support for Black entrepreneurs.
In the year 2023, the SBA approved an astounding 4,060 7(a) loans specifically designated for Black or African American-owned businesses, representing an impressive 7.90% of the total loan approvals. This resulted in a total approval amount of $1,090,162,400, accounting for 4.50% of the total loan dollars granted. Our analysis further reveals that the SBA approved an additional 327 loans to Black or African American-owned businesses through the SBA's 504 loan program.
Empowering Black Banks:
The SBA has worked diligently in collaboration with Black-owned banks to expand access to 7(a) loans. Notably, in 2023, several Black banks made significant contributions to this success:
- Mechanics & Farmers Bank (NC) approved 7 loans with a total value of $4,940,000.
- Liberty Bank and Trust Company (LA) approved 3 loans totaling $299,000.
- Industrial Bank (DC) approved 2 loans amounting to $1,662,000.
- The Harbor Bank of Maryland (MD) approved 1 loan worth $558,000.
- Tioga-Franklin Savings Bank (PA) approved 4 loans totaling $1,200,000.
- Lendistry SBLC, LLC (CA) played a substantial role, approving 83 loans with a combined value of $47,015,500.
- The First Security Bank (OK) approved 1 loan of $160,000.
(Data compiled by Henry Bridgers, Grinnell College, Intern Analyst)
These remarkable statistics stand as a testament to the unwavering commitment of the Biden Administration to promote economic equality and expand opportunities for Black entrepreneurs. For more, see: https://www.blackenterprise.com/
We commend the Biden Administration for its dedication to this cause and reaffirm our support. Of course, this achievement would not have been possible without the efforts of the SBA. Our shared commitment to empowering Black-owned businesses will persist, and we are confident that together, we can further expedite progress.
William Michael Cunningham