Description

​

Small businesses are the lifeblood of the United States economy. According to the U.S. Chamber of Commerce, small businesses employ nearly half of all U.S. workers and account for nearly half of the U.S. Gross Domestic Product (GDP).
MDIs play a particularly vital role in the small-business ecosystem, often providing countless hours of technical assistance to aspiring entrepreneurs and leveraging innovative approaches such as cash-flow underwriting to help borrowers qualify.

 

The SBA lending program is designed to address market failures by stepping in to provide capital where conventional financing may not otherwise be available. Thus, while SBA loans represent only a fraction of overall MDI small-business lending, this snapshot illustrates the significance of MDIs as sources of capital and credit.

 

Key Insights:

 

• 98 MDIs collectively originated more than 16,000 SBA 7(a) loans totaling $16 billion, accounting for roughly 5% of SBA loans and 9% of SBA loan dollars.

• MDI SBA lending flowed to all 50 states, with California, Texas, and Georgia receiving the largest share by both number of loans and total loan dollars.

• More than $2 billion of MDI SBA lending flowed to startups, helping launch new businesses.

• The median interest rate for MDI SBA loans was lower than the median across all SBA loans (8% versus 9.25%).

• MDI borrower ZIP codes have higher minority population shares and higher poverty rates relative to all SBA borrower ZIP codes.

• MDI lending supported more than 176,000 jobs, with the average MDI loan supporting 10 jobs.

Implications:

 

The report begins by providing a snapshot of MDI lending from 2020 through 2025. Next, the report highlights place-based characteristics of SBA borrowers. Finally, the report concludes with a reflection on the ongoing need for mission-driven SBA lenders. As the nation marks its 250th anniversary, this report highlights the continued importance of the MDI sector as a critical support for the small-business ecosystem that helps power the U.S. economy. 

Published June 12, 2026

​​​

Download The SBA Lending Report

​

​