The U.S. Small Business Administration (SBA) recently announced the delivery of $50 billion in capital, disaster relief, and bonding to small businesses and disaster-impacted communities across the U.S. in Fiscal Year 2023 (FY23). More than $658.6 million of those dollars helped Wisconsin’s small businesses start and grow via 1,233 SBA-backed loans.
The SBA’s flagship 7(a) program in Wisconsin approved a slightly higher number of loans (964) for a slightly lower dollar amount ($482.1 million) compared to FY22’s 958 loans totaling $500 million. After a banner year for 504 loans in FY22, due in part to low fixed interest rates and refinances, there was a significant decline from 387 loans in FY22 to 183 in FY23 and a decline of $113 million from the FY22 figure of $287 million as interest rates increased.
The number of microloans made by the six SBA microloan intermediaries operating in Wisconsin increased over FY22, with 86 loans made for $1.7 million compared to 74 loans for $1.5 million last year.
Of the total loan portfolio volume, 37.3%, or more than $31.3 million, consisted of loans $150,000 or less. In FY22, 33% of loans, or more than $29.5 million, were $150,000 or less. Startup businesses made up 40% of the portfolio in FY23, compared to 36% in FY22.
The SBA’s Wisconsin office will present 16 awards to 14 lenders based on loan volume and other criteria at the Wisconsin Lenders’ Conference in May.
