Robust Growth in SBA Lending Activities

Robert H. Nelson, District Director for the U.S. Small Business Administration’s Massachusetts District Office, proudly announced the fiscal year-end achievements for Massachusetts. SBA lending in the Commonwealth witnessed a remarkable 11.9% increase in combined 7(a)/504 flagship lending year-over-year, with the total dollar amount rising by 7.5% from $571,612,600 to $614,563,500.

Dynamics of 7(a) and 504 Approvals

7(a) loan approvals experienced an impressive surge of 27.5%, reaching 1,434 approvals from 1,125. However, 504 approvals decreased by 39.9%, highlighting a shift in lending dynamics. Notably, Western Massachusetts saw a significant bright spot with a 71.4% increase in 504 loan approvals, signaling positive economic development in the region. Microloan approvals also witnessed a substantial rise of 65.9%, climbing from 85 to 141 approvals in FY 23.

Empowering Underserved Communities

Protected class categories showed substantial growth, affirming the SBA’s commitment to fostering an inclusive entrepreneurial ecosystem. Loan approvals for Black/African American entrepreneurs surged by 79%, Hispanic American approvals increased by 37%, Asian American approvals rose by 41.8%, and Native American approvals grew by 40%, showcasing the SBA’s dedication to supporting a diverse range of businesses.

SBA’s Impact and Leading Lenders

Robert H. Nelson highlighted the collective impact, stating that “the SBA, with 165 lending partners, supported capital to 1,775 small businesses for over $855 million in Massachusetts.” Eastern Bank retained its position as the #1 SBA 7(a) lender for the 15th consecutive year, with TD Bank and Needham Bank securing the second and third spots, respectively.

Top Performers in the 504 Loan Program

The 504 Loan Program, supporting a total of $416,982,407, recognized Bay Colony Development Corp. as the highest producer, followed by Granite State Economic Development Corp. and New England Certified Development Corp.

Microloan Program Success

The SBA Microloan Program, through nine intermediaries, approved 141 loans totaling $3,270,430. Common Capital led in volume, with Community Teamwork, Inc., South Eastern Economic Development Corp., and Ascendus, Inc. also making significant contributions.

Massachusetts District Office of the SBA, in collaboration with its dedicated lending and resource partners, achieved a resilient fiscal year, supporting small businesses and underserved communities. The commitment to building an equitable entrepreneurship ecosystem remains unwavering, even in the face of rising interest rates.

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