SBA 504 loan originations are up 21.3% as of April 30, 2025 compared to the prior fiscal year.
This represents a slight acceleration compared to the 21.0% rise posted as of March 31, 2025. Year-to-date approval volumes are at the highest level in the last five years, with the exception of the pandemic year of FY2022. Originations in the SBA’s other major loan program, SBA 7(a) loans, slowed modestly to a 35.3% increase compared to the prior fiscal year, up from the 41.6% jump in originations recorded through March 31, 2025.
Cumulative gross charge-offs for the SBA 504 program have traditionally been very low, as seen in the graph above right. There was a spike in the lead up and immediate aftermath of the 2007-2008 financial crisis, but charge-offs quickly fell back as the financial crisis wound down. From a peak of 18.2% in 2007, gross charge-offs fell to 2.0% in 2010, and 0.9% in 2014. Since that year, gross charge-offs have remained below 1.0%, and have not exceeded 0.1% since 2017.
Overall, the number of SBA 504 loans originated year-to- date through April 30, 2025 was up 21.3% compared to the same period in FY2024. Driving this growth were loans in the higher size range, specifically loans between $500k and $2m, which grew 16.9% from the prior year and accounted for 44.2% of loans originated YTD, and loan over $2m, which grew 29.0% and accounted for 47.1% of loans originated. Loans from $150k-$250k also grew substantially, rising 18.9% from the prior year, , but loans in this range only accounted for 1.6% of all loan originations.
