How SBA 7(a) Lenders Make Capital Accessible while fulfilling CRA Commitments

As we move into the second half of FY2025, SBA 7(a) loan data is starting to shape up, offering a clearer look at who’s borrowing, how much they’re borrowing, and how things are shifting across key demographics. Powered by LenderAI Insights, this snapshot dives into year-to-date SBA 7(a) trends with a focus on gender, race/ethnicity, and veteran status.

For SBA 7(a) lenders, these findings highlight where capital is helping historically underserved entrepreneurs and where gaps may still remain --- presenting an opportunity to lead in both access and Community Reinvestment Act (CRA) impact.  

The 7(a) Loan Landscape in FY 2025

As of mid-April 2025, the SBA has approved 45,295 loans totaling $19.75 billion. That figure already accounts for roughly 64.5% of the total number of loans approved in FY 2024 and 63.5% of last year’s total loan volume. If historical patterns hold pace, 2025 is on track to match or exceed the $31.1 billion in approved loans for FY 2024, reinforcing the 7(a) program’s role as a consistent financing tool for small businesses nationwide.  

Breaking down the data further reveals important shifts in who is securing these loans and the amounts they are borrowing, offering a valuable overview of current trends in small business lending.

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Female Entrepreneurs: A Continued Presence in SBA Lending

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Women-owned businesses remain a key group in SBA 7(a) lending. So far in FY 2025, women entrepreneurs account for 28.2% of total loan approvals and 24.7% of loan dollars in FY 2025. This follows a steady upward trend in recent years.

In FY 2024, women-owned businesses secured 30.4% of loan approvals and 26.2% of total loan amounts, reflecting steady growth from previous years. Notably, this growth extends beyond the number of loans, with women also securing larger amounts of capital, signaling that they are not only accessing more funds but also scaling their businesses with more significant investments.  

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Racial and Ethnic Breakdown of SBA 7(a) Lending

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Racial and ethnic trends in SBA 7(a) lending continue to show important shifts in borrower demographics. While white borrowers still represent the largest group—about 42.2% of all loan approvals and 38% of the total approved amount—minority-owned businesses are playing an increasingly significant role in SBA lending.  

Hispanic borrowers have received 11.2% of all loans this year, amounting to 7.8% of the total dollar amount approved. Compared to last year’s full-year data (12.5% of all loans and 8.3% of total loan volume), this year’s pace suggests that Hispanic entrepreneurs may be on track to match or even surpass those levels by year’s end, signaling continued momentum in access to capital.  

Meanwhile, Asian borrowers account for 10.6% of loan approvals so far in FY2025. Interestingly, they receive a much larger share of the total loan value, at 16.5%. This pattern, consistent with previous years, suggests that Asian entrepreneurs are not only borrowing more frequently but are also securing larger loans.

Black entrepreneurs, while still underrepresented in terms of total loan dollars, remain a critical and growing force in SBA 7(a) lending. As of mid-April 2025, Black borrowers account for 6.6% of all loan approvals and 4.4% of overall approved loan dollars, totaling approximately $877 million. At this pace, they are on track to surpass last year's loan volume of $1.41 billion by the end of the 2025 fiscal year. Notably, the current year-to-date total already represents 62% of FY 2024’s full-year funding for this segment.  

Lastly, American Indian or Alaska Native borrowers continue to make up a small portion of the total approvals, accounting for 0.8% of loan counts and receiving 0.7% of the total loan amounts. This segment has remained steady over the years, showing consistent, albeit limited, participation in the SBA 7(a) program.

Veteran Participation in SBA 7(a) Lending

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As of April 2025, veterans have been approved for $729.54 million in SBA 7(a) funding, which amounts to 3.7% of the total loan dollars. While the percentage of loans granted to veterans has held steady over the past several years, the level of participation remains relatively low compared to other borrower groups. This ongoing trend suggests there may still be untapped opportunities to further support veterans in securing the capital they need to grow their businesses.

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Key Takeaways for Lenders

• Women-owned businesses make up 28.2% of loan approvals and 24.7% of loan dollars so far in FY 2025. It’s clear women continue to play a major role in SBA lending and are steadily scaling up.

• Minority groups, especially Hispanic and Asian entrepreneurs, are securing a larger share of loan amounts relative to their loan count. This signals that the size of loans for these groups is increasing, even if the number of loans is not as large.

• Veteran participation remains steady but limited, accounting for just 4% of total loans and 2.6% of approved dollars.

Final Thoughts

SBA 7(a) lending is tracking closely with historical trends, but who’s borrowing is gradually shifting. Women, minority, and veteran entrepreneurs are steadily increasing their presence not just in loan volume but also in the amount of funding they’re securing. These trends reflect real momentum toward broader, more inclusive access to small business financing.

At iBusiness Funding, we believe that data drives impact. Staying informed on the latest data can empower lenders to anticipate borrower needs, strengthen relationships and refine their SBA strategy. Create or log in to your free LenderAI account today and unlock tomorrow’s opportunities in SBA lending.