Lending to Black Small Business Owners Has More than Doubled

During the Congressional Black Caucus Institute’s Annual Legislative Conference, I joined the U.S. Small Business Administration Administrator, Isabella Casillas Guzman, for an important announcement. We shared new data showing the rate of SBA-backed loans going to Black-owned businesses has more than doubled under the Biden-Harris Administration.

Economic mobility and success are vital to achieving the American dream, but for far too long, Black Americans have faced roadblocks on that path. I applaud the efforts of the Biden Administration and the SBA to help Black small business owners succeed and grow. The growth in lending to the Black community and other underserved groups is promising news and is a result of direct efforts to reach more communities. These loan numbers show that President Biden’s Investing in America agenda is making inroads to support more of America’s Black small business owners. I know we still have a long way to go.

The SBA has backed more than 4,300 SBA loans to Black-owned businesses so far in FY 23 through the 7(a) and 504 programs. Total loan dollars ($1.3 billion) and overall share of SBA-approved loans (7.5%) to Black-owned businesses have also more than doubled since 2020. Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, with 13.1 million new business applications filed since President Biden took office—a rate 20% faster than the pre-pandemic average.

The SBA has taken major steps to increase access to its core capital programs, especially among Black and Hispanic entrepreneurs. These include:

• Expanding the Community Advantage program, which supports lending to small businesses in underserved communities through mission-driven, community lenders, and making mission-oriented lending a permanent part of SBA loan program through the Community Advantage Small Business Lending Company license;

• Deploying the $100 million Community Navigator Pilot Program funded under President Biden’s American Rescue Plan;

• More than tripling the number of Women’s Business Centers at Historically Black Colleges and Universities and Hispanic Serving Institutions;

• Forging historic partnerships with the National Pan Hellenic Council, Operation HOPE, and others;

• Implementing new reforms to address persistent capital access gaps

Through these increased efforts, more entrepreneurs will have access to programs like SBA’s 7(a) Loan program, which provides guarantees to lenders, up to $5 million. And programs like these enable entrepreneurs like Mario Berlanga to grow and expand their business here in Southern Nevada. I look forward to working with small business owners who need help navigating these programs. My office is here to help.