What is the SBA loan default rate for Multifamily Housing Construction?

At 13.4%, Multifamily Housing Construction sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The rate is measured on the resolved loans (paid in full or charged off), loans that have reached a final outcome. 67 lenders actively fund this industry.

Which SBA program is best for Multifamily Housing Construction?

The SBA 7(a) program is the most commonly used for Multifamily Housing Construction businesses, accounting for the majority of approved loans. The SBA 504 program is popular for larger real estate and equipment purchases.

NAICS 233220Construction

How Much Can Multifamily Housing Construction Businesses Get in SBA Loans?

Name: PeerSense
Address: Westfield, Westfield, IN, 46074, US
Telephone: +13174526990
Price range: Referral fee at closing

127 SBA loans totaling $22.0M have been approved for multifamily housing construction businesses (NAICS 233220). The average approved SBA loan is $173K, which is 49% below avg the $340K national average. 67 active lenders fund this industry with a 13.4% default rate on the matured 2018-2021 loan cohort.

Moderate default risk13.4% vs 15.4% all industry avg

At 13.4%, Multifamily Housing Construction sits below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), moderate default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 233220 (Multifamily Housing Construction) received 127 SBA loans worth $22.0M across 5+ states. Average loan $173K, average term 103 months, 13.4% default rate (resolved loan basis).67 active SBA approved lenders fund this industry. Most multifamily housing construction loans use the SBA 7(a) program. There are approximately 800,651 U.S. establishments in this industry (Census 2022).

127

Total SBA Loans

$22.0M

Total Volume

$173K

Avg Loan Size

49% below avg

Active Lenders

103 mo

Avg Term

21% below avg

1,004

Jobs Supported

Which SBA Program Do Multifamily Housing Construction Businesses Use Most?

SBA 7(a)115 (91%)

SBA 50412 (9%)

What Is the Best SBA Loan for Multifamily Housing Construction?

SBA 7(a)

The most widely used SBA program for multifamily housing construction businesses: flexible terms, multiple use cases

Industry avg loan: $173K

Typical term: 103 months

67+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 13.4%

Where Are Multifamily Housing Construction SBA Loans Most Common?

18 loans

$4.7M

15 loans

$3.2M

8 loans

$2.0M

7 loans

$495K

6 loans

$233K

SBA Lending Activity in Multifamily Housing Construction

67 SBA lenders have funded 127 loans to multifamily housing construction businesses (NAICS 233220). Which lender approves your deal depends on your location, loan size, credit profile and time in business, not on who funded someone else. PeerSense makes the introduction.

Loans funded

127

Active lenders

Total volume

$22.0M

Avg loan size

$173K

Browse all SBA lenders

Multifamily Housing Construction Industry Context

U.S. Establishments

800,651

U.S. Census Bureau · 2022

U.S. Employment

8,309,000

BLS · 2026

SBA Penetration

0.02%

SBA loans per establishment

Talk to PeerSense

PeerSense sources capital for multifamily housing construction businesses. The capital source sets the terms. No upfront fee. Talk to PeerSense. Referral fee at closing.

Retainers

10%

Down with SBA 7(a)

25yr

Terms Available

Talk to PeerSense (317) 452-6990

Talk to PeerSense about financing a Multifamily Housing Construction business.

Tell us your loan amount and use of funds. PeerSense sources capital. The capital source sets the terms.

SBA 7(a) / 504: PeerSense will reach out. No obligation.

How big is your deal?

Where are you in the deal?

Equity or down payment ready

Credit score

Timeline to close

SBA already on the books?

What best describes your company

Liquid funds available outside this deal

Where is the property or business

By checking this box and submitting my information, I electronically sign and agree that PeerSense, Inc. and its affiliates, funding partners, and franchise partners may contact me at the email address and phone number I provided, including by phone call, SMS/text message (including autodialed, prerecorded, or artificial voice messages), and email, for marketing, franchise research, and funding related purposes, even if that number is on any Do Not Call list. Message and data rates may apply. Consent is not a condition of purchase. I may opt out at any time by replying STOP to texts or emailing info@peersense.com. I have read and agree to the Privacy Policy and Terms of Service.

Referral fee realized at closing · Or call (317) 452 6990

How Does SBA Lending Work for Multifamily Housing Construction Businesses?

Across all SBA loan programs, 127 loans have been approved for businesses classified under NAICS 233220 (Multifamily Housing Construction), representing $22.0M in total capital deployed. The average approved loan of $173K is 49% below avg the national SBA average of $340K, with typical repayment terms of 103 months.

SBA lending for multifamily housing construction has remained relatively stable across recent fiscal years. 67 active lenders continue funding this sector, providing consistent access to capital for both new ventures and established businesses looking to expand.

The industry sees a balanced mix of SBA programs, with 9% of loans using the 504 program for fixed asset acquisition and the majority using 7(a) for its flexibility across working capital, equipment, and business acquisition uses. SBA 7(a) loans offer up to $5M with terms up to 25 years for real estate.

Talk to PeerSense about a multifamily housing construction file. The capital source sets the terms. The desk fee is paid at closing, never upfront.

SBA Loan Guide SBA Calculator SBA Lender Directory Industry Data Hub Current SBA Rates Contact Us

Frequently Asked Questions: Multifamily Housing Construction SBA Loans

What is the average SBA loan size for multifamily housing construction businesses?

Based on 127 approved SBA loans, the average loan size for multifamily housing construction (NAICS 233220) is $173K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a multifamily housing construction business?

SBA 7(a) is the most commonly used SBA program for multifamily housing construction businesses. The most widely used SBA program for multifamily housing construction businesses: flexible terms, multiple use cases. PeerSense can analyze your specific deal to determine the optimal program.

How many lenders fund SBA loans for multifamily housing construction?

67 different SBA approved lenders have funded loans in this industry. Not all lenders are equally active in every industry. Talk to PeerSense. The capital source sets the terms for a multifamily housing construction file.

What states have the most SBA lending for multifamily housing construction?

CA leads with 18 SBA loans and $4.7M in total volume for multifamily housing construction businesses. NY, TX, PR also show strong lending activity in this sector.

How does PeerSense help multifamily housing construction businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a multifamily housing construction file. The capital source sets the terms. No upfront fee. The desk is paid at closing.

Related Construction Industries

All Other Specialty Trade Contractors

21,953 loans · N/A

Avg: $308K

Plumbing, Heating, and Air-Conditioning Contractors

20,555 loans · N/A

Avg: $289K

Residential Remodelers

20,213 loans · N/A

Avg: $126K

Electrical Contractors

15,119 loans · N/A

Avg: $248K

New Single-Family Housing Construction (except Operative Builders)

10,114 loans · N/A

Avg: $161K

Site Preparation Contractors

8,290 loans · N/A

Avg: $288K

Data aggregated from SBA loan records (1992 to 2025). Multifamily Housing Construction defined by NAICS code 233220. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.