As we race towards the end of FY 2025, I thought now would be a good time to provide an update on the state of the 7(a) industry and on what’s new and changing at NAGGL.
Between the on-boarding of a new administration, SBA’s issuance of major 7(a) policy revisions, and NAGGL’s revamping of its automated systems and educational offerings, it has been an incredibly busy 10 months. But let’s start with where we stand on 7(a) Loan Activity.
The SBA 7(a) Loan Program is on track for a historic year.
- FY 2025 gross approvals are already up more than 15% over last year and are projected to surpass even the stimulus-fueled volumes of 2021 — when we had 90% guarantees and zero fees.
- We will finish July – 10 months into the fiscal year – with just over $30 billion in gross 7(a) approvals.
- At this point, based on member feedback, we expect to see the normal end-of-the-fiscal-year volume increases in August and September, and anticipate ending FY 2025 with approximately $37 billion in “gross” 7(a) loan approvals. But as you know, program availability is measured based on “net” loan approvals, so from that figure, we need to subtract cancellations, which normally run 5-10% of gross approvals. Even using the conservative 5% figure, and barring anything unforeseen, we would end the fiscal year slightly under the Congressional FY 2025 authorized level of $35 billion (net).
The very good news is that I have discussed current 7(a) activity with senior SBA leadership, and have confirmed with them that, given the current run rate, the Agency’s internal data indicates that the program has sufficient authorization through September 30th. But just to be safe, as I always do at this time of the year,I encourage you to cancel any loans that will not be closed, for whatever reason.
Here’s where you get to congratulate yourselves. I am very pleased to report that this high level of lending activity is being driven by NAGGL members. During FY 2024, you accounted for 94% of 7(a) loan volume, and we fully expect FY 2025 to show similar strength.
And it is interesting to note that this increased lending occurred even though the number of lending institutions continues to decline due to consolidations – but despite that, NAGGL continues to grow. We have more individuals actively engaged in our programs, advocacy, and events than ever before. Our training classes are full. Our conferences keep getting bigger. Committee involvement has never been higher. Our reach is expanding.
Looking ahead, NAGGL has been having discussions with Members and staff on Capitol Hill to encourage raising the authorized 7(a) Program level for FY 2026. The House draft appropriations bill provides a $42.5 billion program level but includes a provision requiring that $10 billion of that amount be set aside for loans to small manufacturers. Historically, the annual average 7(a) loan volume to the manufacturing segment has been slightly under $2 billion. So, while a $10 million maximum loan size obviously would increase both the number and dollars of manufacturing loans, it is unlikely that we would surpass $5 billion in loans to manufacturers in 2026. We will continue our discussions with the Hill as we push for an appropriate authorization level for FY 2026. We’ll keep you updated as progress is made on the legislative front.
Beyond the sheer numbers, this has been a milestone year for both the industry and the association. We’ve been in an era of building for the future. Here’s just some of what NAGGL has been up to:
- We have upgraded our infrastructure to better serve you.
In May, NAGGL launched an entirely new member experience — including a redesigned website and the new MyNAGGL portal, to provide a faster, more seamless experience. - We are revamping our entire education program.
This Spring, we introduced our new education framework, Pathways, with the release of two courses – Cornerstones: Introduction to SBA, 7(a) and NAGGL (free for all members), and Foundations in 7(a) Lending (free for sustaining members). Both courses are ideal for individuals who are onboarding into the SBA lending industry or looking to strengthen their core knowledge.
And we are excited to announce that Level 1 of the full Pathways program — featuring 27 new courses across five specialty tracks — is slated to launch in the coming weeks.
- We are integrating AI resources to support member interactions.
In May at our Spring Conference, we introduced Prue, an AI-powered conference assistant. Prue is now being developed internally with the goal of making her a future resource for all members, giving you fast, accurate answers to technical and policy questions right when you need them. - We are launching an AI Working Group to lead the industry.
This new group will be composed of forward-thinking industry professionals actively exploring AI within their organizations. Together, these industry volunteers will help shape the future of AI in SBA lending by sharing best practices and helping define what prudent, responsible AI integration looks like within 7(a) lending.
- We are investing in future leadership development.
In July, we hosted 140 SBA lenders at our 2025 Leadership Summit in Huntington Beach. We were excited to see a lot of new faces with more than one-third of the attendees participating for the first time. There was a healthy exchange of ideas, and NAGGL is sharing lender feedback with SBA to help the Agency structure its systems and requirements to best serve small businesses and 7(a) lenders.
During the Summit, we celebrated the graduation of 13 individuals from our Future Lending Leaders Program (FLL) and welcomed 12 new members into the Class of 2026. For those of you who may not be familiar with FLL, the program, now in its fifth year, is designed to provide training, information and mentoring to outstanding individuals, selected on a competitive basis, who are active in the 7(a) industry and are interested in taking on greater leadership roles.
- Finally, we have expanded our commitment to small businesses through NAGGLCares.
Our NAGGLCares initiative now includes supporting the recovery of small businesses affected by natural disasters. Spearheaded by a Board of Directors subcommittee, NAGGL has pledged $50,000 in donations during 2025, including a recent $5,000 contribution to Mountain BizWorks to support North Carolina businesses working to recover from hurricane damage
And there is more to come. Right now, we are gearing up for our biggest event of the year happening in less than 90 days at The Broadmoor in Colorado Springs. As the largest industry event of the year, interest is already high. We expect great support from SBA for another sold-out event, so early registration is strongly encouraged.
This is just a whirlwind roundup of what has been going on in our industry and at NAGGL. Taken together, these efforts reflect a simple truth: NAGGL and its members are not waiting for the future, we are shaping it.
Together, we are proving that with the right focus, the right partnerships, and the right people at the table, this industry can rise to meet any challenge. Thanks for supporting NAGGL and for all that you do to support America’s small businesses.
Tony Wilkinson
President and CEO
NAGGL
