What is the SBA loan default rate for Natural Gas Distribution?

At 10.1%, Natural Gas Distribution sits well below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), low 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. 123 lenders actively fund this industry.

Which SBA program is best for Natural Gas Distribution?

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

NAICS 221210UtilitiesLending Growing

How Much Can Natural Gas Distribution Businesses Get in SBA Loans?

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242 SBA loans totaling $92.1M have been approved for natural gas distribution businesses (NAICS 221210). The average approved SBA loan is $380K, which is 12% above avg the $340K national average. 123 active lenders fund this industry with a 10.1% default rate on the matured 2018-2021 loan cohort.

Low default risk10.1% vs 15.4% all industry avg

At 10.1%, Natural Gas Distribution sits well below the 15.4% all industry SBA default rate (charged off as a share of resolved loans), low default risk relative to other SBA industries. The capital source prices this risk into rate and structure.

Quick Answer

NAICS 221210 (Natural Gas Distribution) received 242 SBA loans worth $92.1M across 5+ states. Average loan $380K, average term 120 months, 10.1% default rate (resolved loan basis).123 active SBA approved lenders fund this industry. Most natural gas distribution loans use the SBA 7(a) program. There are approximately 2,420 U.S. establishments in this industry (Census 2022).

242

Total SBA Loans

$92.1M

Total Volume

$380K

Avg Loan Size

12% above avg

123

Active Lenders

120 mo

Avg Term

8% below avg

1,357

Jobs Supported

Is SBA Lending Growing for Natural Gas Distribution?+100% growth

$1.7M

$2.7M

$2.9M

$4.5M

$2.6M

$5.4M

$3.8M

$1.3M

$40K

$3.4M

Which SBA Program Do Natural Gas Distribution Businesses Use Most?

SBA 7(a)222 (92%)

SBA 50420 (8%)

What Is the Best SBA Loan for Natural Gas Distribution?

SBA 7(a)

The most widely used SBA program for natural gas distribution businesses: flexible terms, multiple use cases

Industry avg loan: $380K

Typical term: 120 months

Historical avg rate: 6.59%

123+ lenders active in this industry

Default rate (2018 to 21 matured cohort): 10.1%

Where Are Natural Gas Distribution SBA Loans Most Common?

32 loans

$13.9M

23 loans

$8.6M

19 loans

$3.9M

19 loans

$11.3M

12 loans

$4.9M

SBA Lending Activity in Natural Gas Distribution

123 SBA lenders have funded 242 loans to natural gas distribution businesses (NAICS 221210). 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

242

Active lenders

123

Total volume

$92.1M

Avg loan size

$380K

Browse all SBA lenders

Natural Gas Distribution Industry Context

U.S. Establishments

2,420

U.S. Census Bureau · 2022

SBA Penetration

10.00%

SBA loans per establishment

Talk to PeerSense

PeerSense sources capital for natural gas distribution 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 Natural Gas Distribution 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

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How Does SBA Lending Work for Natural Gas Distribution Businesses?

Across all SBA loan programs, 242 loans have been approved for businesses classified under NAICS 221210 (Natural Gas Distribution), representing $92.1M in total capital deployed. The average approved loan of $380K is 12% above avg the national SBA average of $340K, with typical repayment terms of 120 months.

SBA lending for natural gas distribution is accelerating. Loan volume has grown approximately 100% over recent fiscal years. This upward trajectory suggests expanding access to capital and growing lender confidence in this sector. Peak activity occurred in FY2018.

The industry sees a balanced mix of SBA programs, with 8% 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 natural gas distribution file. The capital source sets the terms. The desk fee is paid at closing, never upfront.

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Frequently Asked Questions: Natural Gas Distribution SBA Loans

What is the average SBA loan size for natural gas distribution businesses?

Based on 242 approved SBA loans, the average loan size for natural gas distribution (NAICS 221210) is $380K. This compares to the national SBA average of $340K across all industries.

Which SBA loan program is best for a natural gas distribution business?

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

How many lenders fund SBA loans for natural gas distribution?

123 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 natural gas distribution file.

What states have the most SBA lending for natural gas distribution?

TX leads with 32 SBA loans and $13.9M in total volume for natural gas distribution businesses. CA, PA, MN also show strong lending activity in this sector.

How does PeerSense help natural gas distribution businesses get SBA loans?

PeerSense is a capital advisory firm. Talk to PeerSense about a natural gas distribution file. The capital source sets the terms. No upfront fee. The desk is paid at closing.

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Data aggregated from SBA loan records (1992 to 2025). Natural Gas Distribution defined by NAICS code 221210. Not financial advice. PeerSense sources capital through a curated network of commercial lenders and capital sources. Consult a lending professional before making financial decisions.