U.S. Small Business Administration Helps Wisconsin Small Businesses

Monday, December 12th, 2022 -- 9:00 AM

The U.S. Small Business Administration’s Wisconsin District helped the state’s small businesses access nearly $789 million in SBA-supported loans to meet their business needs in the 12 months ending September 30, 2022. 

While a drop from the record high FY21 figure of over $1 billion in the state, SBA-backed lending is still well above pre-pandemic annual lending amounts, which ranged between $500 and $600 million annually.

In total, SBA supported 1,368 7(a), 504, and microloans for $788.7 million in FY22. More Badger State firms took advantage of the SBA 504 loan program, which helps small businesses get long-term, fixed-interest capital to acquire fixed assets such as real estate, additional machinery, equipment, and construction efforts.

With 387 504 loans made for $287.1 million, more loans, but $10 million less than was lent than in FY21,  the average 504 loan size decreased to $857,000 in FY22, compared to $873,000 in FY21.

“These loan numbers indicate a healthy doubling down and belief by investors and community stakeholders that small businesses are essential for inclusive economic recovery and prosperity,” said SBA Great Lakes Regional Administrator Geri Aglipay.

“More capital is flowing to American small businesses due to opportunities from historic bi-partisan policies created under the Biden Administration and the President’s commitment to strengthen equitable access to capital through SBA and SBA’s with no-cost resources and programs.”

SBA-backed 7(a) lending in Wisconsin dropped from 1,325 loans for $774.6 million in FY21 to 958 loans for $500.1 million in FY22, a decline of 27.7% in loan numbers.  Average loan size decreased in the 7(a) program as well, from $584,000 to $522,000.

“SBA-backed capital helps small businesses throughout Wisconsin start, grow, and expand, with the collaboration of both traditional and community-based lenders,” says Eric Ness, SBA’s Wisconsin District Director. “Businesses can start, buy new equipment, hire more employees and positively impact themselves and their communities in important ways.”

For example, Graftobian Make Up Co. in Madison expanded its facility and moved parts of its operations from New York to Madison with the help of an SBA 504 loan. SBA’s six microloan intermediaries serving Wisconsin also provided 75 microloans totaling $1.5 million to Wisconsin small businesses. 

The average loan size was $20,080. In addition to its loan programs, SBA’s Lender Match platform has helped connect entrepreneurs with SBA-approved lenders within 48 hours via a quick online form without cost to the user. More than 800 lenders around the U.S. participate in LenderMatch.

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