The number of small business loans issued in 2021 increased, but decreased.
So are microfarm loans, according to one bank Fact Sheet Results of a nationally aggregated statistical analysis of the 2021 Community Reinvestment Act (CRA) data released on Thursday (December 15).
Total small business loans, including originations and purchases, rose 12.6% in 2021 from the previous year, but the dollar value of loans declined 21%.
In 2021, there will be approximately 9.4 million such loans totaling $371 billion.
Likewise, the total number of smallholder loans increased by 26.4% in 2021 compared to 2020, while the dollar amount decreased by 1.2%.
The figures include data compiled for banks, savings and loan associations and savings banks reporting under CRA regulations.
The data was compiled by the three federal banking agency members Federal Financial Institutions Examination Board (FFIEC) and the CRA Responsibilities: board of governors of the fedThis FDIC and office of the comptroller of the currency.
“The CRA requires federal banking agencies to use their authority when inspecting financial institutions to encourage such institutions to help meet the credit needs of the local communities in which chartered institutions operate, consistent with the safety and sound operations of such institutions,” the fact sheet says.
The majority of loans issued in 2021 were under $100,000, with about 92% of small business loans and 83.8% of small farm loans below that threshold.
In terms of the dollar amount of loans disbursed, approximately 35.5 percent of small business loan dollars and 31.5 percent of small farm loan dollars were included in loans under $100,000.
Small businesses with revenues of $1 million or less received approximately 47.1 percent of small business loans and 29 percent in dollars, while similarly sized small farms accounted for 59.3 percent of small farm loans and 67.7 percent in dollars.
The PYMNTS study found that, SMEs (SMEs) are better than previous pre-pandemic peaks and better than they were during the Great Recession.
At the same time, according to the “Main Street Index Q3 2022“