Welcome to our 2019 SBA 7(a) Loan Market Outlook, an annual forecast of key market dynamics based on the best data available at the time of publication. Just as our strategic discussions with lenders and industry experts naturally focus on the SBA’s current state and future trends, this report aims to capture the same forward-looking, proactive views as a foundational tool for its readers.
Small-businesses are the primary jobs engine of the U.S. economy — creating two out of three net new private sector jobs each year. The SBA helps small-businesses drive a healthy economy through a number of initiatives — including the flagship 7(a) loan guaranty program — designed to encourage lenders to provide loans to small-businesses that are often unable to secure financing on reasonable terms or conditions elsewhere.
Four main themes appear to be defining the SBA lending market in 2019:
- Approved Dollar Volume Remains Near Record Level
- Active Lender Participants Reaches Lowest Level in 12 Years
- SBA Lender Oversight Continues to Strengthen
- Secondary Market Premiums Rebound From 2018 Lows