504 loan originations are down 3.1% compared to the same point in FY2023, a significant improvement from the 22.1% decline reported at the end of February 2024.
SBA 7(a) originations are now up 1.7% compared to the same period in FY2023, which is a drastic improvement over the 18.7% decline measured at February 29, 2024.
The 7(a) program has shown steady growth in loans outstanding in recent years that continued through FY2023 (up 3.1% in FY2023, 3.1% in FY2022, and 6.8% in FY2021). 504 loans have shown accelerating growth, rising 9.7% in FY2023, 6.7% to $30.9 billion at year-end FY2022, and 6.4% in FY2021. If we include the private lender portion of the same loan projects, which typically accounts for roughly 50% of 504 projects, The total for SBA 504 loan outstandings (1st and 2nd liens combined) would be somewhere in the neighborhood of $76 billion, still below 7(a) totals, but equal to approximately 69% of the 7(a) balance.
The majority of SBA 504 loans have traditionally gone to male-owned business. Although the general trend over the past ten years has seen a steady increase in the percentage of loans going to women-owned businesses, this trend has stalled in recent years. Loan originations to companies owned 50% or more by females decreased to 10.3% YTD in FY2024 from 11.4% in FY2023, while loans to business owned less than 50% by women advanced modestly to 18.5% from 18.2%. As a result, loans to male-owned businesses rose to 71.1% in YTD FY2024 from 70.4% in FY2023 and 70.3% in FY2019.
