More than 30% of small business owners applied for SBA loans in 2022

According to a study from Balboa Capital where small business owners were asked about their Small Business Administration (SBA) lending practices and volumes in 2022, 31.25% of small businesses applied for SBA loans in 2022 and 61.9% of applications for SBA loans accepted. The study was presented to a sample of small businesses in the United States in the first two weeks of 2023.

“Small businesses drive local and regional communities and the national economy, and their growth and success depend on access to capital,” said Kevin Umeda, vice president and director of the sales manager at Balboa Capital. “While there are many microfinance opportunities available to small business owners, we wanted to measure the need for SBA loans in 2022. Beyond assessing the needs for these loans, our research speaks to the interest of businesses in different types of SBA foreign loans and the rate of approval of the respondents.”

A Balboa Capital study revealed that the most popular types of SBA loan products that small business owners applied for in 2022 included Standard 7(a ) loans (30.43%), SBA Express Loans (26.09%) and CDC/504 loans (21.74%). Of the small businesses that applied for SBA loan products, in addition to 61.9% of loan applications that were accepted, 23.81% were rejected and 14.29% are still being evaluated or processed. Regarding the amount of SBA funds requested, 63.64% of small business owners requested up to $499,999, 31.82% requested between $500,000 and $999,999 and 4.55 % requested more than $1 million.

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