SBA Provides Historic Level of Lending to CT Small Businesses

COVID-19 Lending, 7(a), and 504 Loans Make FY20 Largest Loan Volume in Agency History

The U.S. Small Business Administration provided historic levels of capital to small business in the past year. In response to the COVID-19 pandemic, the SBA supported over $750 billion of small business financing and economic relief. Nationally, the SBA’s regular lending programs guaranteed more than $28 billion to small businesses in FY20. In addition, it’s COVID-19 Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), provided the most access to capital in the agency’s history.

SBA lending results in Connecticut for the federal government’s FY20, ending September 30, 2020, reported solid year-over-year trends. CT SBA lending supported over $207 million dollars in loans through its three premier loan programs: the 7(a) Loan Guaranty Program, the Certified Development Company/504 Loan Program, and the Microloan Program. Through its lending partners, these loan programs provide small businesses access to capital to cover the vast majority of business expenses, including short and long-term working capital, exports, and even refinancing existing debt.

In Connecticut, small businesses, non-profits, agricultural businesses, and faith-based organizations received over 35 thousand EIDL Loans approved for over $2.1 billion (as of 11/22/20). In addition, these businesses received more than 52 thousand EIDL Advances approved for more than $166 million (as of 7/15/20). Further, the Paycheck Protection Program (PPP) assisted 65 thousand small businesses and not-for-profit businesses providing $6.7 billion dollars in Connecticut.  

During FY20, traditional SBA loan programs supported 578 loans for $206.94 million in Connecticut and its eight counties.

• SBA’s 7(a) program made 444 small business loans for $165 million
• SBA’s 504 program made 73 loans for $39 million
• SBA’s Microloan program (loans for less than $50 thousand) made 61 loans for $1.4 million

“We continue to fulfill our mission by supporting SBA-backed financing and various grant programs to reach entrepreneurs across geographic locations, economic regions, including rural and underserved communities, and all industries,’ stated Catherine Marx, CT SBA District Director.  ‘Our lending and resource partners went above and beyond this year. The CT SBA team looks forward to honoring them at our Annual Lenders Meeting next week”.

The Connecticut District office will hold its Annual Lenders Meeting virtually this year to recognize outstanding lenders and SBA resource partners on Tuesday, December 15, 2020.  Guest speakers will include SBA Regional Administrator, Region 1, Wendell Davis, and U.S. Congresswoman Rosa DeLauro, CT-03. 

It has been an unprecedented year for our office, lenders, and particularly our resource partners. This virtual event will celebrate the accomplishments of your fellow Connecticut lenders and our Resource Partners will give updates as they helped small businesses access capital during one of the most challenging economic times in modern history.  

Join us in highlighting the awardees for their outstanding contributions in helping small businesses to Start, Grow, Expand and Recover! For more information and to register please click here: Register Here