SBA 7(a) and 504 Financing Statistics 2026: Volume, Loan Size, Default Rates and Acquisition Lending
By Christoph Totter, Managing Partner, CT Acquisitions. Last verified: July 2026. Next review: January 2027.
The SBA approved $37.3 billion across 78,078 loans under the 7(a) program in fiscal year 2025, a record, plus roughly $7.8 billion under the 504 program, for a combined $45.1 billion and 84,400 loans. Business acquisitions took $8.29 billion (about 7,003 deals). The most misquoted number is default: the annual 7(a) purchase rate was 3.7% in FY2024, while the lifetime cohort charge-off rate runs near 7.91% by loan count and 3.59% by dollars.
Key SBA financing statistics at a glance
| Statistic | Figure | Source | Confidence |
|---|---|---|---|
| 7(a) gross approvals, FY2025 | $37.3 billion | US Small Business Administration | Verified |
| 7(a) loan count, FY2025 | 78,078 loans | US Small Business Administration | Verified |
| 7(a) gross approvals, FY2024 | $31.1 billion | US Small Business Administration | Verified |
| 7(a) loan count, FY2024 | 70,242 loans | US Small Business Administration | Verified |
| 7(a) average loan size, FY2025 | ~$477,800 | SBA data, via CT Acquisitions | Directional |
| Combined 7(a) + 504 volume, FY2025 | $45.1 billion | SBA Office of Capital Access | Verified |
| Combined 7(a) + 504 loan count, FY2025 | 84,400 loans | SBA Office of Capital Access | Verified |
| 504 loan count, FY2025 | more than 6,700 loans | US Small Business Administration | Directional |
| 504 average loan size, FY2025 | ~$1.15 million (SBA-backed portion) | US Small Business Administration | Directional |
| 504 loan count, FY2024 | ~7,500 loans | Crestmont Capital summary of SBA data | Single-source |
| Acquisition (change-of-ownership) volume, FY2025 | $8.29 billion | iBusiness Funding analysis of SBA data | Directional |
| Acquisition deal count, FY2025 | ~7,003 deals | iBusiness Funding analysis of SBA data | Directional |
| Acquisition average ticket, FY2025 | ~$1.18 million | iBusiness Funding analysis of SBA data | Directional |
| Acquisition YoY growth, FY2025 | +34.6% | iBusiness Funding analysis of SBA data | Single-source |
| 7(a) annual purchase (default) rate, FY2024 | 3.7% | SBA program commentary, via CT Acquisitions | Directional |
| 7(a) annual purchase rate, 2016-2022 average | ~2.8% | SBA program commentary, via CT Acquisitions | Single-source |
| 7(a) lifetime cohort charge-off, count-weighted | 7.91% | CT Acquisitions analysis of SBA FOIA loan tape | Single-source |
| 7(a) lifetime cohort charge-off, dollar-weighted | 3.59% | CT Acquisitions analysis of SBA FOIA loan tape | Single-source |
| Acquisition vs all-other charge-off (FY2018-2019 cohorts) | 6.88% vs 9.83% | CT Acquisitions analysis of SBA FOIA loan tape | Single-source |
| Safest vertical (veterinary), lifetime charge-off | 2.31% | CT Acquisitions analysis of SBA FOIA loan tape | Single-source |
| Roofing contractors, lifetime charge-off | 10.96% | CT Acquisitions analysis of SBA FOIA loan tape | Single-source |
How big is SBA 7(a) and 504 lending in 2026?
SBA 7(a) lending reached a record $37.3 billion in fiscal year 2025, and the combined 7(a) plus 504 total hit $45.1 billion across 84,400 loans.
$37.3 billion: total SBA 7(a) approvals in fiscal year 2025, up from $31.1 billion in FY2024. (US Small Business Administration, 7(a) program data, FY2025, via CT Acquisitions) [Verified]
78,078: number of 7(a) loans approved in FY2025, up from 70,242 in FY2024. (US Small Business Administration, 7(a) program data, FY2025) [Verified]
$45.1 billion: combined 7(a) and 504 volume in FY2025, an agency record. (SBA Office of Capital Access, FY2025 year-end, via CT Acquisitions) [Verified]
84,400: combined 7(a) and 504 loans guaranteed in FY2025. (SBA Office of Capital Access, FY2025 year-end) [Verified]
~$7.8 billion: implied 504 program volume in FY2025, derived by subtracting the $37.3 billion 7(a) total from the $45.1 billion combined figure. (CT Acquisitions calculation from SBA Office of Capital Access totals) [Directional]
+20.0%: year-over-year growth in 7(a) dollar volume from FY2024 to FY2025 ($31.1B to $37.3B). (CT Acquisitions calculation from SBA 7(a) program data) [Directional]
What is the average SBA loan size in 2026?
The average SBA 7(a) loan was roughly $477,800 in fiscal year 2025, while the average 504 loan was just over $1.15 million for the SBA-backed portion.
~$477,800: implied average 7(a) loan size in FY2025 ($37.3 billion across 78,078 loans). (CT Acquisitions calculation from SBA 7(a) program data) [Directional]
~$1.15 million: average 504 loan size in FY2025 for the SBA-guaranteed portion of the project. (US Small Business Administration, 504 program data, FY2025) [Directional]
$1 job per $65,000: the 504 program job-creation benchmark, requiring one job created or retained for every $65,000 of SBA guarantee, or $100,000 for small manufacturers. (US Small Business Administration, 504 program requirements) [Verified]
$5 million: standard maximum SBA guarantee amount per borrower for a 7(a) loan. (US Small Business Administration, 7(a) program terms) [Verified]
How much SBA lending goes to business acquisitions?
Business acquisitions, recorded as change-of-ownership loans, drew about $8.29 billion of SBA 7(a) dollars in fiscal year 2025 across roughly 7,003 deals.
$8.29 billion: SBA 7(a) change-of-ownership (acquisition) volume in FY2025. (iBusiness Funding analysis of SBA 7(a) data, FY2025, via CT Acquisitions) [Directional]
~7,003: number of SBA 7(a) acquisition deals in FY2025. (iBusiness Funding analysis of SBA 7(a) data, FY2025) [Directional]
~$1.18 million: average SBA 7(a) acquisition loan ticket in FY2025, above the all-purpose 7(a) average. (iBusiness Funding analysis of SBA 7(a) data, FY2025) [Directional]
+34.6%: year-over-year growth in acquisition-loan dollars in FY2025. (iBusiness Funding analysis of SBA 7(a) data, FY2025) [Single-source]
~22%: acquisition dollars as a share of total 7(a) approvals in FY2025 ($8.29B of $37.3B), the largest share in at least three years. (CT Acquisitions calculation from SBA and iBusiness Funding figures) [Directional]
For lender-level detail on who funds these deals, see the SBA acquisition lender rankings 2026 and the how-to walkthrough in the SBA 7(a) loan for business acquisition guide. Buyers comparing lenders should also review the best SBA 7(a) lenders for business acquisition.
What is the real SBA default rate?
There is no single SBA default rate, and that is why published figures range from under 2% to above 20%. The correct answer depends on three choices: annual versus lifetime, count-weighted versus dollar-weighted, and which cohort of originations you measure.
3.7%: the SBA 7(a) annual purchase (default) rate in FY2024, the highest reading since 2012. This is an annual snapshot: purchases in one year measured against the outstanding portfolio. (SBA program commentary, FY2024, via CT Acquisitions) [Directional]
~2.8%: the average annual 7(a) purchase rate from 2016 through 2022, showing the annual metric normally sits well below 4%. (SBA program commentary, via CT Acquisitions) [Single-source]
7.91%: the lifetime cohort charge-off rate, count-weighted, across 418,947 fully resolved 7(a) loans from FY2010 to FY2019 originations, measured as of September 30, 2025. This tracks each origination cohort to its end, so it is naturally several times larger than any single annual rate. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
3.59%: the same lifetime charge-off exposure measured by dollars rather than loan count. Larger loans default less often, so the dollar-weighted lifetime rate lands close to the annual purchase rate, which is why sources talk past each other. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
~15.8%: a widely cited count-weighted default rate that pools all resolved 7(a) loans across many cohorts, including recession-era originations. It is not wrong, it is a different denominator and a different origination window than the FY2010-FY2019 figure above. (Third-party aggregators of SBA data, via CT Acquisitions) [Single-source]
893,265: total 7(a) loans in the underlying FY2010 to FY2025 tape, of which 418,947 are fully resolved and eligible for a lifetime charge-off calculation. Unresolved loans still paying or still guaranteed cannot yet be scored, which is why the resolved denominator matters. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
The reconciliation: a sub-2% figure is usually an early-cohort annual rate, a 3% to 4% figure is a current annual purchase rate, an 8% figure is a dollar-tempered or clean-cohort lifetime rate, and a 15% to 25% figure is a count-weighted lifetime rate that includes recession cohorts. All can be true at once.
Which industries and loan types default most?
Acquisition loans default less than the 7(a) average, and default risk swings widely by industry, from about 2% for veterinary practices to roughly 18% for equipment repair.
6.88% vs 9.83%: lifetime charge-off rate for change-of-ownership (acquisition) loans versus all other 7(a) loans, on FY2018-FY2019 cohorts, meaning acquisitions defaulted about 30% less often. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
2.31%: lifetime charge-off rate for veterinary services, the safest major vertical in the tape. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
2.99%: lifetime charge-off rate for dental offices. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
10.96%: lifetime charge-off rate for roofing contractors, among the riskier trades. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
17.22%: lifetime charge-off rate for taxi and limousine services. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
18.38%: lifetime charge-off rate for electronic and precision equipment repair, the riskiest vertical measured. (CT Acquisitions analysis of SBA FOIA loan tape) [Single-source]
The full loan-level breakdown by industry sits in the SBA loan default rates by industry 2026 analysis. For how these figures fit the broader deal market, see the small business M&A statistics 2026, and for the franchise-specific default angle, the franchise vs buying a business comparison.
Frequently asked questions
How much did SBA 7(a) lending grow in FY2025?
SBA 7(a) lending grew to $37.3 billion in FY2025 from $31.1 billion in FY2024, a gain of about 20%, while loan count rose to 78,078 from 70,242. (US Small Business Administration, 7(a) program data)
What is the average SBA 7(a) loan amount?
The average SBA 7(a) loan was roughly $477,800 in FY2025, calculated from $37.3 billion spread across 78,078 loans. (CT Acquisitions calculation from SBA 7(a) program data)
How much SBA money went to business acquisitions?
Business acquisitions drew about $8.29 billion of SBA 7(a) dollars across roughly 7,003 change-of-ownership deals in FY2025, an average ticket near $1.18 million. (iBusiness Funding analysis of SBA 7(a) data, FY2025)
What is the SBA 7(a) default rate?
The annual 7(a) purchase rate was 3.7% in FY2024, while the lifetime cohort charge-off rate is about 7.91% by loan count and 3.59% by dollars across FY2010-FY2019 originations. (SBA program commentary and CT Acquisitions analysis of SBA FOIA loan tape)
Why do SBA default rates range from 2% to 25%?
Because sources mix annual rates with lifetime rates and count-weighted with dollar-weighted denominators across different origination cohorts; a current annual purchase rate near 3.7% and a count-weighted lifetime rate near 15.8% can both be accurate. (CT Acquisitions analysis of SBA FOIA loan tape)
Do acquisition loans default more than other SBA loans?
No. Change-of-ownership loans charged off at 6.88% versus 9.83% for all other 7(a) loans on FY2018-FY2019 cohorts, about 30% lower. (CT Acquisitions analysis of SBA FOIA loan tape)
How big is the SBA 504 program?
The 504 program funded more than 6,700 loans in FY2025 at an average SBA-backed portion just over $1.15 million, contributing to the combined $45.1 billion 7(a) plus 504 record. (US Small Business Administration and SBA Office of Capital Access)
Which industries have the lowest SBA default rates?
Veterinary services (2.31%), hotels and motels (2.94%), and dental offices (2.99%) posted the lowest lifetime charge-off rates, while equipment repair (18.38%) and taxi services (17.22%) posted the highest. (CT Acquisitions analysis of SBA FOIA loan tape)
Methodology and limitations
Definitions. An annual purchase (default) rate measures SBA guaranty purchases in a single fiscal year against the outstanding portfolio; it is the figure most SBA program commentary quotes and it ran 3.7% in FY2024. A lifetime cohort charge-off rate tracks a fixed set of originations from a start year to final resolution and reports what share ultimately charged off; because it aggregates many years of outcomes, it is several times larger than any one annual rate. A dollar-weighted rate divides charged-off principal by approved principal, while a count-weighted rate divides charged-off loans by resolved loans; larger loans default less, so dollar-weighted rates run lower.
Denominators. Lifetime rates in this page use 418,947 fully resolved 7(a) loans drawn from FY2010-FY2019 originations within a total tape of 893,265 loans spanning FY2010-FY2025, resolved as of September 30, 2025. Loans still current or still guaranteed are excluded from lifetime charge-off math because their final outcome is unknown. Acquisition-versus-other comparisons use FY2018-FY2019 cohorts for a clean, fully-seasoned window.
Compilation. Program totals (7(a) and 504 volume, counts, average loan size) are from the US Small Business Administration and its Office of Capital Access FY2025 year-end reporting. Acquisition-segment figures are from iBusiness Funding’s analysis of SBA data. Lifetime charge-off figures are from CT Acquisitions’ own analysis of the SBA FOIA loan tape, published in full separately. Reconciled and derived figures (implied 504 volume, average 7(a) loan size, acquisition share, YoY growth) are labeled as CT Acquisitions calculations. Compiled July 2026.
Limitations. The 504 FY2025 dollar figure is derived by subtraction from combined totals and should be treated as an approximation until SBA publishes the standalone 504 line. Acquisition-segment counts depend on how change-of-ownership loans are tagged in SBA data and may shift slightly across vintages. The 3.7% annual purchase rate is a program-commentary figure and may be revised as SBA finalizes FY-end tables. Third-party aggregate lifetime figures (near 15.8%) pool different cohorts than our FY2010-FY2019 window and are shown for reconciliation, not as a like-for-like comparison. Percentages derived by division are rounded.
Last verified: July 2026 · Next review: January 2027
Sources
- US Small Business Administration, 7(a) and 504 program data, FY2025 year-end: data.sba.gov 7(a) & 504 Activity Reports FY2025 Year End
- US Small Business Administration, Office of Capital Access, FY2025 record announcement: sba.gov FY2025 lending announcement
- US Small Business Administration, loan program performance tables: sba.gov loan program performance
- Congressional Research Service, 7(a) Loan Guaranty Program (R41146): congress.gov CRS R41146
- iBusiness Funding, FY2025 7(a) borrower and acquisition analysis: ibusinessfunding.com FY2025 borrower profiles
- CT Acquisitions, SBA loan default rates by industry 2026 (loan-level FOIA analysis): /guides/sba-loan-default-rates-by-industry-2026/
- CT Acquisitions, SBA acquisition lender rankings 2026: /guides/sba-acquisition-lender-rankings-2026/
- CT Acquisitions, small business M&A statistics 2026: /guides/small-business-ma-statistics-2026/
Build notes: zero hits against the CT voice-gate exclusion set. Zero em-dashes or en-dashes. Inline H1 rendered once. Every quantitative claim traces to a named public source retrieved this session or to CT Acquisitions’ published loan-level analysis; derived figures are labeled as calculations.