Dropping in on the weekend with a few stories that came out after our Thursday newsletter about the SBA Capital Impact report, an acquisition by Kapitus, and Fundbox put on a prestigious list.
SBA Capital Impact Report
The U.S. Small Business Administration (SBA) has released its Fiscal Year 2024 Capital Impact Report, revealing a significant surge in small business financing under the Biden-Harris Administration. The report highlights the SBA's delivery of a transformative $56 billion to small businesses and disaster-impacted communities in FY2024, marking a notable increase in capital access programs.
Record-Breaking Small Dollar Loans
One of the most striking findings is the dramatic increase in small-dollar loans. The report shows a doubling of loans less than $150,000 since FY2020, with a 33% increase from FY2023 alone. This surge is attributed to the agency's historic program reforms implemented in late FY2023, which modernized lending criteria and improved access to affordable small loans.
Increased Diversity in Lending
The SBA has made significant strides in supporting underserved communities:
Black-owned businesses received 5,200 loans totaling $1.5 billion, tripling the loan count compared to FY2020.
Latino-owned businesses secured 9,600 loans amounting to $3.3 billion, 2.5 times greater than in FY2020.
Women-owned businesses obtained 15,500 loans worth $5.6 billion, doubling their participation relative to FY2020.
Impact of the Investing in America Agenda
The report also reflects the influence of the Biden-Harris Administration's Investing in America Agenda. Construction emerged as the leading industry in the SBA's 7(a) program, partly due to the significant investment in infrastructure and domestic manufacturing since President Biden took office.
Administrator Guzman's Perspective
SBA Administrator Isabel Casillas Guzman emphasized the critical role of capital in the entrepreneurial journey. She stated, "Through loans, investments, and surety bond guarantees, the SBA has helped power the small businesses that have in turn powered America's unparalleled economic recovery from the COVID-19 crisis."
The FY2024 Capital Impact Report underscores the SBA's commitment to revitalizing Main Streets and innovation hubs across America. It demonstrates the agency's efforts to make capital more accessible to small businesses, particularly those in underserved communities, and highlights the positive impact of recent policy reforms on small business financing.
For entrepreneurs and small business owners seeking funding opportunities, the SBA's Lender Match page offers a platform to connect with participating SBA Lenders providing competitive rates and fees.
HEAR A FULL BREAKDOWN OF THE SBA CAPITAL IMPACT REPORT ON OUR PODCAST
Kapitus Acquires Ten Oaks Commercial Capital
Kapitus, a prominent player in the small and medium-sized business financing sector, has made a significant move by acquiring Ten Oaks Commercial Capital. This strategic acquisition marks Kapitus' entry into the equipment financing market, expanding its portfolio of financial products and services.
Expansion into Equipment Financing
The acquisition of Ten Oaks Commercial Capital allows Kapitus to launch a dedicated equipment financing arm. This new division will focus on providing financing solutions for essential business equipment across various industries.
Key Benefits of the Acquisition:
Diversification of Kapitus' product offerings
Enhanced ability to serve a broader range of business needs
Potential for increased market share in the equipment financing sector
Leadership and Integration
Ten Oaks' founder and CEO, Bill Mayer, will join Kapitus as the Managing Director of Equipment Finance. This move ensures continuity and brings valuable expertise to Kapitus' new equipment financing division.
Integration Plans:
Leveraging Ten Oaks' existing relationships and expertise
Combining Kapitus' technology and resources with Ten Oaks' industry knowledge
Potential for developing innovative financing solutions for equipment-intensive businesses
The acquisition of Ten Oaks Commercial Capital represents a strategic expansion for Kapitus, positioning the company to better serve businesses with diverse financing needs, particularly in the equipment sector.
Fundbox Selected as an Inc.com B2B Power Partner
Fundbox, a leading AI-powered financial platform for small businesses, has been recognized by Inc. Business Media as a B2B Power Partner in the Embedded Capital category. This accolade highlights Fundbox's innovative approach to providing financial solutions for small businesses.
Recognition in Embedded Capital
The selection of Fundbox as a B2B Power Partner underscores the company's leadership in integrating financial services seamlessly into business workflows. This recognition is particularly significant in the evolving landscape of embedded finance.
Key Aspects of Fundbox's Success:
AI-driven financial solutions tailored for small businesses
Innovative approach to embedded capital
Strong partnerships with B2B companies
Impact on Small Business Finance
Fundbox's embedded capital solutions are designed to address the unique financial needs of small businesses. By integrating financial services directly into business processes, Fundbox aims to simplify access to capital and improve financial management for its clients.
Benefits for Small Businesses:
Streamlined access to working capital
Improved cash flow management
Potential for faster growth and expansion
The recognition by Inc as a B2B Power Partner validates Fundbox's position as a leader in the embedded finance space and highlights the company's commitment to empowering small businesses through innovative financial solutions.
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