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While the number of U.S. Small Business Administration loans increased slightly in Massachusetts, the total amount of lending fell during the most recent fiscal year.
Lending in the SBA’s 7(a) loan guaranty program and 504 loan program increased 1.1 percent year-over-year in the fiscal year ending Sept. 30, the SBA’s Massachusetts district office said earlier this month. The loan amounts in those two programs decreased year-over-year by 8.5 percent, from $968.78 million to $886.33 million.
Including microloans, another SBA program, $888 million went to 1,548 small businesses through 160 lending partners, Robert H. Nelson, SBA Massachusetts district director, said in a statement. Fiscal year 2022 was the first year with no new Paycheck Protection Program loans since the start of the pandemic.
“As Main Street continues to stabilize, we want small businesses to know that our traditional lending programs will always be accessible to help you start, grow, expand, and recover,” Nelson said.
The 7(a) program had 1,125 loans in Massachusetts for a total of more than $326.58 million. This program last year saw 1,105 loans in Massachusetts for about $480.2 million.
Eastern Bank was the top SBA 7(a) lender in Massachusetts for the 14th straight year with 251 loans totaling $35.66 million. Eastern Bank said in a separate statement that it was the top third-party 504 lender based on gross dollar amount with 19 loans for about $27.1 million. In fiscal year 2021, Eastern had 185 7(a) loans totaling $35.73 million and the 30 504 loans totaling $31.16 million.
“Small businesses are the heart and soul of our neighborhoods and essential to a thriving, local economy, and we are so very proud to work alongside the Small Business Administration in helping Massachusetts business owners achieve the reality of business ownership,” Quincy Miller, Eastern Bank’s vice chair and president, said in a statement earlier this month. “Eastern’s team of Branch Managers and Business Bankers are deeply committed to offering business owners a full suite of solutions to launch, operate and grow a business no matter their starting point, and we are honored to be recognized once again by the SBA as a top lender to the small business community.”
TD Bank was the next highest 7(a) lender with 89 approvals totaling $9.96 million. Needham Bank moved into the third spot in 2022 with 56 loans totaling $7.52 million.
The 504 loan program saw a similar number of loans compared to the previous year, while the dollar amount increased by 18.3 percent. The program had 338 loans approved for $245.02 million, with Bay Colony Development Corp. and Granite State Economic Development Corp. as the top two producers. This program in the previous fiscal year had 342 loans for $207 million.
The microloan program, which provides up to $50,000 to help small businesses start up and expand, saw eight intermediaries approve 85 loans totaling $1.43 million. The 2021 fiscal year saw 86 microloans approved for $1.87 million.
Common Capital was the top microloan lender with 21 loans, and South Eastern Economic Development Corp.’s 18 loans produced the highest dollar amount with $358,850. North Central Massachusetts Development Corp. had 10 approvals totaling $247,000.
Lending to women-owned businesses increased 19.5 percent in fiscal year 2022, from 226 to 270 approvals, while veteran-owned businesses received about the same number of loans, 54 in 2022 and 53 in 2021. Lending to underserved small businesses, including Asian, Hispanic, Native American and Black businesses, increased by 4.8 percent to 305 loans, while the dollar amount fell year-over-year by 7.1 percent. Lending increased year-over-year by 28.1 percent for Hispanic-owned small businesses and 66.7 percent for Native American-owned businesses.
