The Connecticut District Office of the U.S. Small Business Administration, reached historic volume in fiscal year 2024 with 1,058 approved SBA loans for $383 million made to small businesses. The number of loans represents an 18.3% increase over FY23’s 894 approvals.
Additionally, these results show an increase in small dollar loans, reflecting the SBA’s program reforms in late FY23 that improved access to affordable capital and modernized lending criteria.
“Small business loans backed by the strength of the federal government enabled our small businesses to start, grow and expand. Indeed, the surge in lending is a result of SBA’s increased visibility, the commitment of our lenders and partners to focus on access to capital through targeted events” said Catherine Marx, SBA Connecticut District director.
“Capital is critical to small businesses at every stage, and our programs help power the American dream of business ownership.”
SBA’s flagship programs 7(a), 504 and microloans assisted small businesses, with loan approvals ranging from $5,000 to $5 million.
SBA Connecticut District Office FY24 lending highlights include:
- SBA’s 7(a) Loan Program: 901 approved 7(a) loans, totaling $318.8 million, supporting 7,664 jobs. SBA’s 7(a) program assists lenders to make small business loans, in which the SBA guarantees a portion. An SBA guaranteed loan offers borrowers the potential for a lower equity injection and longer amortization with government capped interest rates.
- M&T Bank is the No. 1 SBA 7(a) lender in Connecticut with 168 loans, totaling $19 million and an average loan size of $113,000.
- TD Bank ranked No. 2 with 98 loans, totaling $9.2 million and an average loan size of $94,000.
- Webster Bank ranked No. 3 with 95 loans, totaling $31.4 million and an average loan size of $331,000.
- SBA’s 504 loan program: 73 approved 504 loans, totaling $62.7 million in SBA funding and $113.8 million in third-party private lender financing, supported 614 jobs. The SBA 504 loan program is a public-private partnership designed to provide fixed rate financing on large equipment and real estate projects for small businesses. Under this program, third-party private lenders provide 50% of the project’s financing, with the SBA supplying 40% and the small business 10%. Through the 504 program the SBA partners with a certified development company (CDC) to support the project.
- New England Certified Development Corp. is the No. 1 SBA 504 lender in Connecticut with 36 loans, totaling $33.7 million with an average size of $937,000 of SBA funding.
- Community Investment Corp. ranked second with 31 loans, totaling $26.4 million and an average size of $850,000 of SBA funding.
- SBA’S Microloan program: 84 approved microloans, totaling $1.7 million, is an increase of over 40% over FY23’s 60 approvals. The SBA Microloan program provides funds to designated nonprofit community-based lenders with management and technical assistance expertise who administer the program.
- The Community Economic Development Fund is the No. 1 SBA Microloan lender in Connecticut with 30 loans, totaling $722,000 and an average loan size of $24,000.
- Pursuit is the No. 2 SBA Microloan lender in Connecticut with 22 loans, totaling $110,000 and an average loan size of $5,000.
To connect entrepreneurs and the small business community to lenders, the SBA Connecticut District Office will hold a Lender Expo on Friday, Nov. 15 from 9 a.m.-noon, at Naugatuck Valley Community College, Waterbury. This free event gathers SBA lenders and partners under one roof, for attendees to learn about SBA’s loan programs, financial assistance, and other services. More information can be found on www.SBA.Gov/CT.
