SBA Works to Increase Capital Access for Underserved Markets
The Small Business Administration (SBA) has been the leading source of capital for American small businesses to start and expand since its inception in 1953. Through its loan guaranty programs, the SBA provides assurance to lending institutions through a loan guaranty program that loans made to approved small businesses will be reimbursed by the SBA if the borrower defaults on the loan. The SBA’s loan guaranty program has helped millions of businesses gain access to capital that has fueled small business growth in the American economy. Recent SBA reports show that in the past year, 67,914 loans were guaranteed, totaling $27.8 billion. These results represent a 3-percent dollar increase over the previous year, which is a new record. The total SBA loan portfolio is now $105.6 billion, a 4 percent increase from last year.
Read more in the American DBE Magazine Fall 2016 issue.