- Connecticut District Office of the U.S. Small Business Administration releases annual report for the 2021 fiscal year
- Report highlights a major boost to the SBA’s traditional loan programs, including 7(a) and 504 lending
- A total of 51,488 small businesses in Connecticut received $523.8 million in government contracts
Summary by Dirk Langeveld
Connecticut saw a major increase in demand for loan products through the U.S. Small Business Administration in the 2021 fiscal year, according to an annual report by the SBA’s Connecticut District Office.
The report highlighted transactions involving the SBA’s traditional loans as well as data on COVID-19 relief funds. It also summarized how Connecticut businesses have taken advantage of government contracting opportunities and showcased the work of the SBA’s resource partners.
During the fiscal year, 7(a) loans were approved for 632 small businesses in Connecticut to the tune of $294.9 million. This represented a 78 percent increase in allocated funds compared to the 2020 fiscal year. The 7(a) program, the SBA’s most common lending option, offers loans of up to $5 million for purposes such as working capital, debt refinancing, or inventory.
There was a similar increase in 504 loans, which also provide up to $5 million toward larger-scale initiatives designed to promote business growth and create jobs. Although these loans supported just 86 small businesses, the funding amount rose 79 percent to $71.5 million.
Together, these two loan programs provided small business with a historic $366.4 million. This represented a 73 percent increase from the 2020 fiscal year’s total of $205.5 million for the two loan programs.
504 loans offered through a third party went to 86 businesses. Their dollar amount nearly doubled, rising 98 percent to $101.4 million.
A total of $1 million in microloans, which are capped at $50,000, was approved for 41 small businesses. Sixty-one percent of these recipients were underserved entrepreneurs, including companies with Black, Hispanic, and Asian owners.
The report broke down the $13.3 billion in COVID-19 relief that Connecticut received in the 2020 and 2021 fiscal years through SBA programs. This included:
- 64,629 loans in the first two Paycheck Protection Program rounds, totaling $6.7 billion
- 55,612 loans in the third round of PPP, totaling $3.2 billion
- 37,121 loans through the COVID Economic Injury Disaster Loan program, totaling $2.9 billion
- 3,711 Targeted EIDL Advance grants totaling $31.7 million and 2,839 Supplemental Targeted Advance grants totaling $14.2 million
- 142 initial and 55 supplemental grants in the Shuttered Venue Operators Grant program, totaling $117.9 million
- 1,303 approved grants through the Restaurant Revitalization Fund, totaling $301.2 million
The Connecticut District Office also highlighted the the work of the SBA’s resource partners in the 2021 fiscal year. This included 15,000 clients served through SCORE, 5,156 through the Connecticut Small Business Development Center, 3,473 through Women’s Business Centers, and 347 through Veteran Business Outreach Centers.
A total of 51,488 small businesses in Connecticut received $523.8 million in government contracts in the 2021 fiscal year. Between 2018 and 2020, Connecticut small businesses were awarded $124.1 million through the Small Business Innovation Research and Small Business Technology Transfer programs. These included $42.3 million obligated through the Department of Health and Human Services, $41.5 million through the Department of Defense, and $19.6 million through the National Aeronautics and Space Administration.