WASHINGTON, D.C. – The U.S. Small Business governance (SBA) announced today it delivered near-record capital – $30.8 billion – to small businesses across America in Fiscal Year 2025, marking a meaningful surge in support for entrepreneurs and job creators. This achievement follows a strategic restructuring earlier in the year, including a 43% workforce reduction and the implementation of stricter underwriting standards designed to mitigate defaults and delinquencies.
The SBA’s success in FY25 underscores a commitment to responsible lending and efficient resource allocation, notably after a rise in defaults and delinquencies observed in FY2024 under the biden Administration. By streamlining operations and reinforcing lending criteria, the agency has demonstrably increased its capacity to empower small businesses through its core loan programs – the 7(a) and 504 loan programs – fueling economic growth and job creation nationwide. This influx of capital is poised to bolster the small business sector, a critical engine of the American economy, as it navigates ongoing economic uncertainties.
The agency’s flagship 7(a) loan program provides government-guaranteed loans for a wide range of small business needs, including equipment purchases, real estate acquisition, working capital, and business expansion. Complementing this, the 504 loan program offers long-term, fixed-rate financing for major fixed assets, fostering business growth and job creation through partnerships with Certified Advancement Companies (CDCs) – SBA’s community-based nonprofit partners.
“the U.S. Small Business Administration helps power the American dream of entrepreneurship,” stated an SBA press release. “As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster.”
For more information, visit www.sba.gov.
