American Bankerยท2025-10-10 14:00Core Insights - Lending under the Small Business Administration's 7(a) program increased by 20% in the last fiscal year, reaching a record $37.3 billion, surpassing the previous high of $36.5 billion in fiscal 2021 [1][10] - Live Oak Bancshares emerged as the largest gainer, increasing its loan volume by 43% to $2.85 billion during fiscal 2025 [2][3] - U.S. Bancorp also reported strong growth, with a 23% increase in loan volume to $871.2 million, driven by high demand and business acquisition activity [5][10] Company Performance - Live Oak Bancshares attributed its success to higher volumes of business-acquisition loans and real estate-based loans, alongside a resilient small business sector [3][4] - U.S. Bancorp's head of SBA lending noted continued momentum in small business loan demand, with no signs of slowdown [6][10] - Huntington Bancorp and M&T Bank also reported significant increases in 7(a) lending, with growth rates of 21% and over 40%, respectively [9][10] Loan Size Trends - The average size of 7(a) loans rose to $477,600 from $443,100 in fiscal 2024, indicating a trend towards larger loans [11] - Live Oak's average loan size exceeded $1.25 million, while it also focused on increasing small-dollar loans, which now constitute a significant portion of its production volume [12][13] - Small-dollar loan volume increased from approximately $50 million to $300-350 million annually, reflecting efforts to streamline the lending process [13]