Building the Dream: How the SBA Powers Equality Through Small Business

As we commemorate Martin Luther King Jr. Day, we reflect on the profound words Dr. King once spoke: “Equality means dignity. And dignity demands a job and a paycheck to every individual willing to work.” For millions of Americans, dignity is realized through the opportunities that small businesses provide—opportunities that are often made possible by the SBA’s transformative programs.

In 2024, the SBA achieved a historic milestone by delivering over $56 billion in small business financing, marking a 7% increase from the previous year. But what makes this achievement especially poignant on MLK Jr. Day is the profound impact these programs have had on communities that have long been underrepresented in entrepreneurship. The SBA has become more than a lending program—it’s a vehicle for economic equality, equity, and empowerment.

Closing the Wealth Gap: SBA’s Role in Advancing Equality

Dr. King’s vision of economic justice included equal access to opportunities, and the SBA’s FY24 Capital Impact Report is proof that we’re moving closer to that goal. Under the Biden-Harris administration, the SBA has reformed its programs to modernize lending criteria and welcome more lenders with expertise in serving underserved communities. These reforms are creating real change:

• Black Entrepreneurs: In FY24, the SBA financed 5,200 loans totaling $1.5 billion to Black-owned businesses—a tripling of the loan count since 2020.
• Latino Entrepreneurs: Latino-owned businesses received 9,600 loans amounting to $3.3 billion, 2.5 times greater than in FY20.
• Women Entrepreneurs: Women-owned businesses saw 15,500 loans for $5.6 billion, double the participation rate compared to FY20.

These numbers are more than statistics—they represent families breaking generational cycles of economic disparity, communities thriving with new opportunities, and a step forward in fulfilling Dr. King’s dream of equal opportunity for all.

Building Dignity Through Business Ownership

Dr. King often spoke of dignity tied to work, and small businesses are a cornerstone of that dignity. They provide jobs, foster community pride, and create pathways to wealth for individuals who might otherwise be left out of traditional economic systems. The SBA’s emphasis on small-dollar loans is crucial here:

• Loans under $150,000 have doubled since 2020, allowing entrepreneurs with limited resources to start or grow their businesses.
• Increased financing in industries like construction, driven by infrastructure investments, has opened doors for business owners across diverse communities to contribute to and benefit from America’s growth.

SBA Lenders: Driving Equality, One Loan at a Time

As SBA lenders, you are at the heart of this mission. Every loan you approve isn’t just a number; it’s an opportunity to advance Dr. King’s vision. By championing underserved entrepreneurs, you’re not just financing businesses—you’re building futures and empowering dreams.

A Call to Action

On this Martin Luther King Jr. Day, let’s recommit ourselves to ensuring that the promise of economic equality becomes a reality for all. Whether it’s working with Black-, Latino-, or women-owned businesses or continuing to expand access to small-dollar loans, your work as SBA lenders is transformative. Together, we’re proving that economic empowerment is not just a dream—it’s a mission we can achieve.

As Dr. King reminded us, “The time is always right to do what is right.” Thank you for continuing to do what’s right—advancing economic equality and empowering small businesses across America.

Let’s keep building. Let’s keep dreaming. And let’s honor MLK Jr.’s legacy every day.