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NAICS 623220Healthcare & Social ServicesLending Growing

How Much Can Residential Mental Health and Substance Abuse Facilities Businesses Get in SBA Loans?

666 SBA loans totaling $509.1M have been approved for residential mental health and substance abuse facilities businesses (NAICS 623220). The average approved SBA loan is $764K, which is 124% above avg the $340K national average. 215 active lenders fund this industry with a 5.9% default rate on the matured 2018-2021 loan cohort.

Low default risk5.9% vs 15.4% all-industry avg

At 5.9%, Residential Mental Health and Substance Abuse Facilities 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. Lenders price this risk into rate and structure, which is why matching the file to the right lender matters.

Quick Answer

NAICS 623220 (Residential Mental Health and Substance Abuse Facilities) received 666 SBA loans worth $509.1M across 5+ states. Average loan $764K, average term 200 months, 5.9% default rate (resolved-loan basis).215 active SBA-approved lenders fund this industry. Most residential mental health and substance abuse facilities loans use the SBA 504 program. There are approximately 8,667 U.S. establishments in this industry (Census 2022).

666
Total SBA Loans
$509.1M
Total Volume
$764K
Avg Loan Size
124% above avg
215
Active Lenders
200 mo
Avg Term
54% above avg
15,949
Jobs Supported

Is SBA Lending Growing for Residential Mental Health and Substance Abuse Facilities?+109% growth

41
50
53
27
22
46
24
32
54
67
16
17
18
19
20
21
22
23
24
25
$24.1M
$39.9M
$48.9M
$18.8M
$25.2M
$57.7M
$33.2M
$22.8M
$44.9M
$53.3M

Which SBA Program Do Residential Mental Health and Substance Abuse Facilities Businesses Use Most?

SBA 7(a)491 (74%)
SBA 504175 (26%)

What Is the Best SBA Loan for Residential Mental Health and Substance Abuse Facilities?

SBA 504

26% of residential mental health and substance abuse facilities loans use this program — ideal for real estate and major equipment purchases

Industry avg loan: $764K
Typical term: 200 months
Historical avg rate: 7.63%
215+ lenders active in this industry
Default rate (2018–21 matured cohort): 5.9%

Where Are Residential Mental Health and Substance Abuse Facilities SBA Loans Most Common?

#1
CA
142 loans
$122.0M
#2
UT
67 loans
$69.5M
#3
MN
63 loans
$36.1M
#4
FL
48 loans
$45.8M
#5
TX
33 loans
$31.6M

Top SBA Lenders for Residential Mental Health and Substance Abuse Facilities

These banks have funded the most SBA loans for residential mental health and substance abuse facilities businesses (NAICS 623220). PeerSense routes deals to lenders with proven appetite in your industry.

#LenderLoansVolume
1Wells Fargo Bank National Association(SD)58$28.4M
2The Huntington National Bank(OH)31$5.7M
3Mountain West Small Business F(UT)30$22.7M
4Live Oak Banking Company(NC)20$28.9M
5U.S. Bank, National Association(OH)15$5.4M

Residential Mental Health and Substance Abuse Facilities Industry Context

U.S. Establishments
8,667
U.S. Census Bureau · 2022
SBA Penetration
7.68%
SBA loans per establishment

Ready to Fund Your Residential Mental Health and Substance Abuse Facilities Business?

PeerSense places SBA loans for residential mental health and substance abuse facilities businesses nationwide. We match you with the right capital source — no retainers, referral fee at closing.

$0

Retainers

10%

Down with SBA 7(a)

25yr

Terms Available

Financing a Residential Mental Health and Substance Abuse Facilities business? Get matched to an SBA lender.

Tell us your loan amount and use of funds. We route you to the lender most likely to fund a deal in your industry.

SBA 7(a) / 504 — Response within 4 business hours. No obligation.

No retainers · Referral fee at closing · Or call (317) 452-6990

How Does SBA Lending Work for Residential Mental Health and Substance Abuse Facilities Businesses?

Across all SBA loan programs, 666 loans have been approved for businesses classified under NAICS 623220 (Residential Mental Health and Substance Abuse Facilities), representing $509.1M in total capital deployed. The average approved loan of $764K is 124% above avg the national SBA average of $340K, with typical repayment terms of 200 months.

SBA lending for residential mental health and substance abuse facilities is accelerating — loan volume has grown approximately 109% over recent fiscal years. This upward trajectory suggests expanding access to capital and growing lender confidence in this sector. Peak activity occurred in FY2025.

Notably, 26% of SBA loans in this industry use the 504 program — well above the national average — indicating that residential mental health and substance abuse facilities businesses frequently finance major fixed assets like real estate, heavy equipment, or facility buildouts. The 504 program offers up to $5.5M with below-market fixed rates and only 10% down from the borrower.

PeerSense specializes in matching residential mental health and substance abuse facilities business owners with the capital sources most likely to approve their specific deal structure. As an advisory firm (not a lender), we structure your deal across our network of 500+ SBA-approved lenders to find the best terms — our referral fee is established upfront and paid at closing. No retainers.

Frequently Asked Questions — Residential Mental Health and Substance Abuse Facilities SBA Loans

What is the average SBA loan size for residential mental health and substance abuse facilities businesses?
Based on 666 approved SBA loans, the average loan size for residential mental health and substance abuse facilities (NAICS 623220) is $764K. This compares to the national SBA average of $340K across all industries.
Which SBA loan program is best for a residential mental health and substance abuse facilities business?
SBA 504 is the most commonly used SBA program for residential mental health and substance abuse facilities businesses. 26% of residential mental health and substance abuse facilities loans use this program — ideal for real estate and major equipment purchases. PeerSense can analyze your specific deal to determine the optimal program.
How many lenders fund SBA loans for residential mental health and substance abuse facilities?
215 different SBA-approved lenders have funded loans in this industry. Not all lenders are equally active in every industry — PeerSense matches your deal with lenders who have experience and appetite in the residential mental health and substance abuse facilities sector.
What states have the most SBA lending for residential mental health and substance abuse facilities?
CA leads with 142 SBA loans and $122.0M in total volume for residential mental health and substance abuse facilities businesses. UT, MN, FL also show strong lending activity in this sector.
How does PeerSense help residential mental health and substance abuse facilities businesses get SBA loans?
PeerSense is a capital advisory firm — not a lender. We analyze your deal (loan amount, down payment, business financials) and match you with SBA-approved lenders experienced in the residential mental health and substance abuse facilities industry. Our referral fee is established upfront in our agreement and paid at closing. No retainers.

Data aggregated from SBA loan records (1992–2025). Residential Mental Health and Substance Abuse Facilities defined by NAICS code 623220. Not financial advice. PeerSense is a capital advisory firm, not a lender. Consult a lending professional before making financial decisions.