On August 14, 2024, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and a member of President Biden’s Cabinet, announced that the Biden-Harris Administration has significantly increased SBA lending to Black-owned businesses while also doubling small-dollar lending and lending to Latino- and women-owned small businesses. This announcement coincides with a record 19 million new business applications filed under the current administration.
“Over the past four years more entrepreneurs than ever before have pursued the American dream of business ownership, and the SBA has been committed to matching this incredible wave of enthusiasm with the capital, market access, and resources small businesses need to start, grow, and thrive,” said SBA Administrator Guzman. “While there is more to do, the Biden-Harris Administration is working to level the playing field for underserved entrepreneurs, and we remain laser-focused on expanding access to opportunity and championing equity.”
Since the beginning of the Biden-Harris Administration, there have been 19 million new business applications with an average of 443,000 filed each month—a rate 92% faster than pre-pandemic averages. This growth has been driven by women and people of color, with data indicating that Black business ownership has doubled since 2019 and women are increasing business ownership at nearly twice the pace of men.
Under President Biden's tenure starting in 2021, SBA lending to historically underserved entrepreneurs has seen significant growth compared to FY20:
- Average monthly SBA lending to Black-owned businesses has tripled.
- Average monthly SBA lending to Latino-owned businesses has more than doubled.
- Average monthly SBA lending to women-owned businesses has doubled.
- Average monthly SBA small-dollar lending has doubled.
The U.S. economy remains on track for its fourth consecutive year of historic business filings under this administration. The past four years have seen more economic growth than any other four-year period in the last quarter-century.
Additional data shows:
- In FY24 so far, average monthly loans to Black-owned businesses number 415 with an average loan volume of $124 million.
- For Latino-owned businesses in FY24 so far, average monthly loans number 775 with an average loan volume of $261 million.
- Women-owned businesses have seen an average monthly loan count of 1,255 in FY24 so far with an average loan volume of $444 million.
- Small-dollar loans in FY24 so far number 3,110 per month on average.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As a resource backed by federal government strength, it empowers entrepreneurs and small business owners with necessary resources for starting, growing or expanding their businesses or recovering from declared disasters. It delivers services through a network of SBA field offices and partnerships with public and private organizations. To learn more visit www.sba.gov.