Small business loan programs provided by the U.S. Small Business Administration helped Iowa small businesses create more than 1,900 new jobs around the state in fiscal 2020. The federal agency also provided more than $6 billion in emergency federal loans to businesses across the state reeling from the pandemic, according to new figures from the U.S. Small Business Administration. 

The SBA on Wednesday released state and national tallies for both its traditional loan guarantee programs as well as this year’s emergency loan programs tied to the pandemic. 

In Iowa, the SBA guaranteed 429 loans totaling more than $233.7 million through its two traditional loan programs — the 7(a) Program and the 504 Fixed Asset Financing Program. The dollar amount of loans in these programs was up nearly 40% from the $168.1 million in 406 loans approved the previous fiscal year. The federal fiscal year ended Sept. 30. In addition to the new jobs created, the loans also helped to retain 3,590 existing jobs in Iowa, according to the SBA. 

The SBA in Iowa also approved 17,372 loans totaling nearly $1.05 billion through the Economic Injury Disaster Loan Program, and 61,429 loans for more than $5.1 billion through the Paycheck Protection Program to Iowa businesses. 

“The SBA Iowa District Office is proud to work for small business owners who have shown everyone during this unprecedented year that they are the unsung heroes and heroes of the American economy,” Jayne Armstrong, district director of the SBA Iowa District Office, said in a release.

“SBA’s record loan volume during FY 2020, including regular SBA lending and PPP and EIDL loans, represents SBA’s commitment to Iowa’s small business community. It is also a reflection of our team’s hard work and dedication and collaboration with SBA’s resource partners and other economic development organizations,” Armstrong said. 

Nationally, the Paycheck Protection Program provided an additional 5.2 million loans worth more than $525 billion in fiscal 2020. The agency’s Economic Injury Disaster Loan Program added another 3.6 million small business loans valued at $191 billion, as well as an additional 5.7 million EIDL Advances worth $20 billion.

Other highlights from SBA’s national figures: 
– SBA’s flagship 7(a) loan program made approximately 42,000 7(a) loans totaling $22.55 billion. – The 504 loan program made approximately 7,000 loans for a total dollar amount of more than $5.8 billion. 
– The Microloan Program, which specifically helps businesses in underserved communities, achieved a second straight record year performance with nearly $85 million going to over 5,800 small businesses. 

Thirty-four percent of Microloans nationally made in FY20 went to Black-owned small businesses, according to the SBA. In Iowa, seven Black-owned small businesses received a total of $245,098 through the Microloan program, which lends up to $50,000 to underserved small businesses. 

Also of note was SBA’s Office of Investment and Innovation, which licensed 26 new Small Business Investment Companies with $2.1 billion in private capital during FY20. This was a 44% increase in the number of new SBIC licensees and a 72% increase in private capital from new licensees compared to FY2019.

“2020 marked a significant improvement in our execution capabilities as compared to 2019,” said Donald DeFosset III, associate administrator for SBA’s Office of Investment and Innovation. “Our pipeline of applicants looks strong and we anticipate continued success in supporting America’s small businesses in this time of difficulty.”

For more information about SBA’s loan programs, financial assistance, and other services, visit the SBA’s Iowa District website.