The U.S. Small Business Administration’s Connecticut District Office facilitated over $368 million in lending to the state’s small businesses over the last 12 months, the highest volume the agency has seen in over five years.
“The historic activity in SBA’s traditional loan programs is due to the cooperation of our state, regional and national lending institutions, along with the efforts of our resource partners across the state that are dedicated to maintaining equitable access to capital for Connecticut’s small businesses and entrepreneurs,” Connecticut SBA Director Catherine Marx said in a statement.
SBA’s most recent complete fiscal year ran from October 2020 to September 2021. In that time, the Connecticut office oversaw more than 768 traditional loans.
According to an agency breakdown, the funding disbursed through fiscal year 2021 included $294 million in 7(a) loans — in which the SBA guarantees the repayment of a certain portion of a private lender’s loan — for 632 small businesses, a 78% increase over $165 million in volume in fiscal year 2020.
A total of $71 million was borrowed by 86 small businesses through 504 loans, which provide long-term, fixed-rate financing for major fixed assets, usually equipment or real estate, that promote business growth and job creation. That figure was up 79% over the prior fiscal year.
The Connecticut SBA office also secured $1 million in microlending loans for 41 small enterprises. According to the agency’s figures, 61% of microlending loans went to support historically underserved communities, including Asian-, Black- and Hispanic-owned businesses.
