This dataset tracks SBA 7(a) and 504 loan volume, approval counts, and average loan sizes from FY2015 through FY2026 (YTD), highlighting how policy changes, rate cycles, and borrower demand are reshaping small business financing.
Key Takeaways
- SBA 7(a) lending has shifted structurally toward smaller loans, with sub-$150K approvals now representing over half (52.3%) of total volume in recent periods.
- Combined SBA 7(a) and 504 lending reached $45.1 billion in FY2025, the highest level on record and a 59% increase over the FY2020 pandemic low of $28.4 billion.
- The 7(a) program approved 78,078 loans totaling $37.3 billion in FY2025, surpassing the FY2021 policy-driven spike in loan count at a significantly lower average loan size ($477,642 vs. $704,630).
- 504 loan volume recovered to $7.8 billion in FY2025 after a 36% drop in loan count between FY2022 (9,254) and FY2023 (5,924), driven by rising debenture rates tied to Treasury yields.
- Small-dollar 7(a) lending (under $150K) grew 228% (FY2021-FY2025, Oct-Feb), reflecting expanded SBA Express and Community Advantage programs.
- Average 7(a) loan size declined from a FY2021 peak of $704,630 to $477,642 in FY2025, consistent with broadened program access to smaller businesses.
SBA 7(a) and 504 Loan Volume by Year
SBA lending has not only recovered from COVID-era lows but now exceeds prior peaks without policy-driven subsidies.
| Fiscal Year | 7(a) Loans Approved | 7(a) Dollar Volume | 504 Loans Approved | 504 Dollar Volume | Combined Dollar Volume |
|---|---|---|---|---|---|
| FY2015 | 63,461 | $23.6B | 5,787 | $4.3B | $27.9B |
| FY2016 | 64,074 | $24.1B | 5,938 | $4.7B | $28.9B |
| FY2017 | 62,430 | $25.4B | 6,218 | $5.0B | $30.5B |
| FY2018 | 60,354 | $25.4B | 5,874 | $4.8B | $30.1B |
| FY2019 | 51,907 | $23.2B | 6,099 | $5.0B | $28.1B |
| FY2020 | 42,298 | $22.6B | 7,119 | $5.8B | $28.4B |
| FY2021 | 51,856 | $36.5B | 9,676 | $8.2B | $44.8B |
| FY2022 | 47,678 | $25.7B | 9,254 | $9.2B | $34.9B |
| FY2023 | 57,362 | $27.5B | 5,924 | $6.4B | $33.9B |
| FY2024 | 70,242 | $31.1B | 5,993 | $6.7B | $37.8B |
| FY2025 | 78,078 | $37.3B | 6,762 | $7.8B | $45.1B |
What the Data Shows
Post-pandemic expansion
SBA lending rebounded from $28.4 billion in FY2020 to $45.1 billion in FY2025, surpassing the FY2021 stimulus-driven peak without enhanced guarantees. The FY2021 spike to $44.8 billion was driven by temporary American Rescue Plan Act provisions (90% guarantees, waived fees); FY2025's record is organic growth.
7(a) dominance
7(a) loan count grew 84% from FY2020 (42,298) to FY2025 (78,078), driving nearly all program expansion. Average loan size declined from $704,630 in FY2021 to $477,642 in FY2025, reflecting broadened access to smaller borrowers.
504 sensitivity to rates
504 loan volume declined sharply as Treasury rates rose, with loan count falling 36% from FY2022 (9,254) to FY2023 (5,924). Recovery to 6,762 loans in FY2025 remains 27% below the FY2022 peak, reflecting the program's fixed-rate structure and sensitivity to capital markets. The comparison of the two programs illustrates how rate environment determines channel preference.
Average SBA Loan Size by Program and Fiscal Year
7(a) and 504 programs are moving in opposite directions on loan size.
| Fiscal Year | 7(a) Average Loan Size | 7(a) YoY Change | 504 Average Loan Size | 504 YoY Change |
|---|---|---|---|---|
| FY2015 | $371,611 | -- | $742,729 | -- |
| FY2016 | $376,581 | +1.3% | $798,316 | +7.5% |
| FY2017 | $407,607 | +8.2% | $806,336 | +1.0% |
| FY2018 | $420,413 | +3.1% | $809,327 | +0.4% |
| FY2019 | $446,508 | +6.2% | $813,019 | +0.5% |
| FY2020 | $533,112 | +19.4% | $818,539 | +0.7% |
| FY2021 | $704,630 | +32.2% | $849,318 | +3.8% |
| FY2022 | $538,903 | -23.5% | $994,997 | +17.1% |
| FY2023 | $479,685 | -11.0% | $1,083,595 | +8.9% |
| FY2024 | $443,057 | -7.6% | $1,112,131 | +2.6% |
| FY2025 | $477,642 | +7.8% | $1,154,096 | +3.8% |
How Many SBA Loans Are Approved per Year by Size Band
Loans under $150K now represent 52.3% of 7(a) approvals (Oct-Feb FY2025), up from 48.1% two years earlier. Growth is strongest in mid-sized loans ($150K-$500K), indicating expansion beyond microloans.
| Size Band | FY2023 Count | FY2024 Count | FY2025 Count | FY2025 Share of Total | FY2024-FY2025 Change |
|---|---|---|---|---|---|
| $50K and Under | 5,691 | 7,353 | 8,908 | 26.1% | +21.1% |
| >$50K - $150K | 4,638 | 6,471 | 8,923 | 26.2% | +37.9% |
| >$150K - $250K | 2,024 | 2,206 | 3,759 | 11.0% | +70.4% |
| >$250K - $350K | 2,099 | 1,799 | 2,570 | 7.5% | +42.9% |
| >$350K - $500K | 1,531 | 2,013 | 3,831 | 11.2% | +90.3% |
| >$500K - $2M | 3,802 | 3,630 | 4,529 | 13.3% | +24.8% |
| >$2M | 1,233 | 1,106 | 1,585 | 4.6% | +43.3% |
Interpretation
Structural shift to small-dollar lending
The 7(a) program has shifted decisively toward smaller loans, with sub-$150K approvals now exceeding half of total volume. This segment grew from 10,329 loans (Oct-Feb FY2023) to 17,831 in FY2025, a 72.5% increase driven by expanded SBA Express lending and minority-owned business growth (up 53.5% over the same period).
Rate-driven program divergence
The divergence between 7(a) and 504 reflects rate structure: variable-rate 7(a) loans remained competitive as Prime-based pricing offered predictable spreads, while fixed-rate 504 debentures tied to Treasury yields became comparatively expensive, making conventional commercial real estate terms competitive in many markets.
Organic growth, not policy distortion
Unlike FY2021, current growth is not driven by temporary policy changes. 7(a) count grew from 42,298 (FY2020) to 78,078 (FY2025) at a lower average loan size ($477,642 vs. $704,630), indicating sustained underlying demand rather than subsidy-driven concentration in larger credits. Business owners comparing SBA versus conventional lending channels should note this accessibility trend.
SBA 7(a) vs. 504 Dollar Volume: FY2015-2025
The chart highlights 7(a) dominance in recent growth and 504 volatility tied to rate cycles. The FY2021 7(a) spike reflects temporary American Rescue Plan Act provisions; FY2025's new high is organic.