SBA: $2.8B delivered to Atlantic region small businesses in fiscal ’24
The agency encourages loan applications despite the disaster funding pause.
Only weeks after the U.S. Small Business Administration (SBA) announced it had exhausted funds for its disaster loan program due to increased demand following Hurricane Helene, the agency reported that it delivered what it called “a transformative” $56 billion to small businesses and disaster-impacted communities in fiscal year 2024 (FY24).
Marlene Cintrón, SBA’s Atlantic regional administrator, highlighted the increase in funding for small businesses.
“In the Atlantic Region alone, which encompasses New York, New Jersey, Puerto Rico and the U.S. Virgin Islands, we approved $2.8 billion and 8,357 loans, with the prospect of creating over 62,000 new jobs,” Cintrón said. “The Puerto Rico District Office and its stakeholders, sourced $150 million in new loans that will create more than 7,000 new jobs on the island. SBA is rebuilding a better future on the island, one small business at a time.”
In an Oct. 15 press release, the SBA announced it was pausing new loan offers for its direct, low-interest, long-term loans to disaster survivors until Congress appropriates additional funds.
Despite this, the SBA is encouraging individuals and small businesses to continue applying for loans, noting assurances from congressional leaders that additional funding will be provided when Congress reconvenes in November.
“We know that swift financial relief can help communities recover quickly to stabilize local economies,” said Administrator Isabel Casillas-Guzmán. “While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. SBA will continue to support homeowners, renters, businesses and nonprofits in processing their applications to ensure they receive assistance quickly once funds are replenished.”
The SBA’s FY24 Capital Impact Report also highlights a notable increase in small-dollar loans. This increase follows historic program reforms in late FY23 that improved access to affordable small loans by modernizing lending criteria, welcoming new lenders specializing in underserved borrowers into the 7(a) program, and simplifying processes for both lenders and business owners.
According to the report, these reforms contributed to a doubling of loans under $150,000 since FY20 and a 33% increase since FY23.
Josué Rivera, director of the SBA’s Puerto Rico and U.S. Virgin Islands District Office, noted that these results reflect the federal administration’s commitment to supporting local communities and boosting the economies of its territories.
“We remain committed to expanding access to capital for our small businesses by improving our partnerships with lenders and ensuring entrepreneurs are ready,” Rivera said. “In Puerto Rico, with the collaboration of partners in the participating financial institutions, we achieved a significant investment in our small businesses with 655 7(a) loans [totaling] $109.2 million … 18 microloans [worth] $632,000 and over $2.5 million in recovery loans.”
