PeerSense Research
2026 SBA Lending Report: What 2.1 Million Loans Tell Us About Small Business Financing
PeerSense analysis of SBA 7(a) and 504 lending data across 899 active lenders, 6,300+ franchise brands, and every NAICS industry code.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
Key Findings
The numbers behind SBA small business lending in the United States.
2.1M+
Total SBA Loans Analyzed
7(a) and 504 programs combined
899
Active SBA Lenders Tracked
Banks, CDCs, credit unions, and fintechs
$46.5B
FY2024 SBA Volume
70,241 loans approved
$479,000
Average Loan Size
Across all SBA programs
16.7%
Top Sector
Accommodation & Food Services
+2.2 pts
Small-Loan Rate Penalty
Sub-$150K loans price at 11.4% vs 9.2% at $2M+ (FY2024+)
6,300+
Franchise Brands Analyzed
With FPI scoring and default data
15–20%
Fintech SBA Market Share
And growing year over year
Source: PeerSense analysis of SBA lending data. Individual figures are approximations derived from aggregated program data. Updated May 2026.
SBA Lending by Industry
Top 10 industries by SBA loan volume. Accommodation and food services dominates at 16.7% of total funding, while healthcare and manufacturing show the lowest default risk profiles.
| Industry | % of Total Funding | Avg Loan Size | Default Risk |
|---|---|---|---|
| Accommodation & Food Services | 16.7% | ~$400K | Above average |
| Healthcare & Social Assistance | 8–10% | ~$550K | Below average |
| Manufacturing | 7–8% | ~$600K | Below average |
| Retail Trade | 9–11% | ~$350K | Average |
| Construction | 5–6% | ~$500K | Above average |
| Professional Services | 6–8% | ~$300K | Below average |
| Transportation & Warehousing | 4–5% | ~$450K | Above average |
| Real Estate | 3–4% | ~$700K | Below average |
| Wholesale Trade | 3–4% | ~$400K | Average |
| Information | 2–3% | ~$500K | Average |
PeerSense analysis of SBA lending data. Figures are approximations from aggregated program data and may not sum to 100%.
Default Rates by Industry Niche
Charge-off rate as a share of resolved loans (paid in full or charged off), the standard cohort-default basis. The spread is dramatic and counterintuitive: professional healthcare niches default below 5% (veterinary 4.1%, dental 4.6%), while gyms, long-haul trucking, and gas stations exceed 14%, roughly four times higher. Licensed, recurring-revenue businesses finance far more safely than capital-intensive consumer operations.
| Industry Niche | Default Rate | Context |
|---|---|---|
| Veterinary Practice | 4.1% | Safest niche, professional licensed cash flow |
| Dental Practice | 4.6% | Established practices, recurring patients |
| Pharmacy | 6.6% | Reimbursement-backed revenue |
| Restaurant (Full-Service) | 9.9% | Near the all-industry average |
| Childcare / Daycare | 11.9% | Capital-intensive, thin margins |
| Car Wash | 13.9% | High build cost, site-dependent |
| Gas Station / Convenience | 14.9% | Fuel-margin + environmental exposure |
| Trucking / Freight (Long-Haul) | 15.2% | Cyclical, fuel + freight-rate exposure |
| Gym / Fitness | 17.1% | Highest-risk, discretionary memberships |
Methodology: charge-off rate as a share of resolved loans (paid in full or charged off), excluding loans still in repayment, exempt, or cancelled. Counting performing loans in the denominator would understate the true rate. PeerSense analysis of public SBA 7(a)/504 records.
Interest Rates by Loan Size: The Small-Loan Penalty
SBA interest rates fall steadily as loan size rises. Borrowers under $150K pay about 11.4%, while loans of $2M+ price near 9.2%, a 2.2-point penalty for being small, driven by fixed origination cost spread over a smaller balance. Right-sizing the request, or pairing with a larger facility, can move a borrower into a better band.
| Loan Size | Avg Interest Rate |
|---|---|
| Under $150K | 11.39% |
| $150K – $350K | 10.69% |
| $350K – $500K | 10.00% |
| $500K – $1M | 9.70% |
| $1M – $2M | 9.38% |
| $2M and up | 9.23% |
FY2024+ originations. PeerSense analysis of public SBA 7(a)/504 records. Indicative averages; individual pricing varies by lender, credit, and structure.
What SBA Lenders Look For
Quick reference for borrowers: the baseline criteria most SBA lenders require before approving a 7(a) or 504 loan.
Credit Score
680+ (700+ for best terms)
Down Payment
10–30% (SBA minimum 10%, lenders often want 20–30%)
Debt Service Coverage
1.15–1.25x minimum DSCR
Business Plan
Required for startups, helpful for acquisitions
Collateral
Required for loans over $500K
Industry Experience
Strongly preferred, especially for restaurants and healthcare
Franchise Lending Insights
PeerSense tracks 6,300+ franchise brands with proprietary FPI (Franchise Performance Index) scoring and SBA default rate data.
Default Rate Spread
Franchise SBA default rates vary dramatically, from less than 2% for top-performing brands to over 25% for the worst performers. Lender selection and brand-level data analysis are critical.
Top-Performing Categories
Quick-service restaurants (QSR), automotive services, and home services consistently produce the strongest SBA loan performance metrics across multiple lending cycles.
FDD Item 19 Disclosure Gap
Only approximately 40% of franchise brands disclose financial performance data in their Franchise Disclosure Document (Item 19). PeerSense fills this gap by cross-referencing SBA lending outcomes, unit economics data, and industry benchmarks.
Explore the Data
Browse individual franchise profiles with SBA lending history, default rates, and lender matching on the PeerSense Franchise Directory.
How to Use This Data
If you are a borrower
Use these benchmarks to understand where your deal stands relative to the market. Knowing that the average SBA loan is $479K, that lenders want 1.15x+ DSCR, and that your industry's default rate is above or below average helps you prepare a stronger application and negotiate better terms.
If you are a journalist or researcher
Cite PeerSense as the source with a link to this page. We publish this data to improve transparency in small business lending and welcome media inquiries.
If you are a lender
Contact us about partnership opportunities, data licensing, and borrower referral programs.
Cite This Report
When referencing these statistics, please use the following attribution:
Need SBA Financing?
PeerSense matches borrowers with the right lender from 899+ active SBA-approved lenders. Compensation established upfront and paid at closing.
Disclaimer: This report is provided for informational purposes only and does not constitute financial, legal, or investment advice. Data presented is based on PeerSense analysis of publicly available SBA lending records and proprietary aggregation models. Individual figures are approximations and may differ from official SBA publications. Lending criteria, interest rates, and default risk assessments are general benchmarks and will vary by lender, borrower, and transaction specifics. Past performance does not guarantee future results. PeerSense is not an SBA lender. Consult qualified professionals before making financial decisions.