Rapidly Rising Levels of Small Business Lending Give Banks Needed Income Boost

The Story: New data from the Small Business Administration finds lending volume increasing at near-record levels as the economy comes back from 2020’s COVID impacts and small businesses reopen in the post-pandemic era. The weekly lending data from the SBA finds that fiscal year-to-date volume topped $20.95 billion – 34% higher than the same period in 2020. At this pace, lending volume is 7% ahead of where it was in 2017, a year when the agency guaranteed a record number of loans.

The Takeaway: Even as the PPP program closes, banks are activating new opportunities with lending programs tailored for small businesses. Both SBA-backed and customized lending products empower banks to demonstrate their commitment to the small business community and embrace critical new sources of income as they strive to earn and keep consumer trust in post-COVID banking.

Source: U.S. Small Business Administration, Weekly Lending Report, July 16, 2021