FY2024 Snapshot: The SBA backed 103,000 financings — the highest since 2008 — with $56 billion in total capital impact (↑7% vs FY2023). The 7(a) program drove growth, particularly in small-dollar loans under $150,000.
7(a) Loans Approved
70,241
↑ 22.4% vs FY2023
Avg 7(a) Loan Size
$443K
↓ 7.6% vs FY2023
Total 7(a) Volume
$31.1B
↑ 12.9% vs FY2023
SBA Capital Impact
$56B
↑ 7% vs FY2023
Avg Interest Rate
11.13%
Peak cycle high · Declining in 2025
Total Financings (All)
103K
Highest since 2008
Source: SBA Office of Capital Access Activity Reports
Source: SBA FOIA Data · GoSBA Loans analysis
Source: SBA 2024 Capital Impact Report
Record Growth in FY2024: 7(a) loan counts surged 22% year-over-year as SBA policy streamlined underwriting for small-dollar loans under $150K, which grew 33% from FY2023 to FY2024 alone.
Source: SBA Office of Capital Access · FOIA Data
Source: SBA Office of Capital Access FY2024
Source: SBA FOIA Data — FY2025–2026
| Fiscal Year |
Loans Approved |
YoY Change |
Total Volume |
Avg Loan Size |
Avg Rate |
| FY2020 |
42,285 |
— |
$22.5B |
$533,210 |
6.46% |
| FY2021 |
51,821 |
↑ 22.5% |
$36.5B |
$704,907 |
5.50% |
| FY2022 |
47,640 |
↓ 8.1% |
$25.7B |
$538,751 |
6.43% |
| FY2023 |
57,362 |
↑ 20.4% |
$27.5B |
$479,685 |
10.13% |
| FY2024 |
70,241 |
↑ 22.4% |
$31.1B |
$443,096 |
11.13% |
| FY2025 (prelim.) |
78,072 |
↑ 11.1% |
~$37.3B |
$477,557 |
10.32% |
Source: SBA FOIA Data · SBA Office of Capital Access
Current Rates (April 2026): The WSJ Prime Rate stands at 6.75%. Max 7(a) rate for loans over $350K is 9.75%. Rates peaked in FY2024 at an average of 11.13% and are now trending down. Most qualified borrowers are securing 7%–10% depending on loan size and profile.
Current Rate Caps by Loan Size
Over $350,000
9.75%
Prime + 3.0% max
$250K – $350K
11.25%
Prime + 4.5% max
$50K – $250K
12.75%
Prime + 6.0% max
Under $50,000
13.25%
Prime + 6.5% max
Prime Rate: 6.75% (Apr 2026)
Source: SBA FOIA Data · GoSBA Loans analysis
Source: SBA FOIA Data · GoSBA analysis
SBA Rates vs. Alternatives
| Loan Type | Typical Rate | Notes |
|---|
| SBA 7(a) >$350K |
6.75–9.75% |
Gov't-capped; best terms |
| SBA 504 (CDC) |
~6.5–7.5% |
Fixed rate on 40% tranche |
| Conv. Bank Loan |
8–13%+ |
No rate caps; shorter terms |
| Online Lender |
15–45%+ |
Fast; very high cost |
| MCA / RBF |
40–150% eff. |
Factor rates; short term |
Key insight: Despite appearing higher than some alternatives in headline rate, SBA loans' 10–25 year terms often produce lower monthly payments than shorter conventional loans at similar rates.
Default & Charge-Off Context: The SBA 7(a) program historically maintains a default rate of 2–4% of outstanding balances in normal economic conditions. Pandemic-era EIDL programs (separate from 7(a)) drove significantly higher charge-off projections. The 7(a) portfolio remains the healthiest of SBA's lending programs.
Historical 7(a) Default Rate
~3%
Typical in normal conditions
FY2022 Charge-offs (7a)
~$2.8B
Post-pandemic normalization
Real Estate Recovery Rate
60–80%
On collateralized RE loans
SBA Guarantee Coverage
75–85%
Of outstanding balance
Source: SBA Loan Program Performance Reports · Wilary Winn White Paper
Source: SBA Loan Program Performance Data
| Loan Amount |
SBA Guarantee % |
Max SBA Coverage |
Lender's Unguaranteed Exposure |
Result for Lender |
| $150,000 or less |
85% |
$127,500 |
15% ($22,500) |
Lowest lender risk |
| $150,001 – $5,000,000 |
75% |
Up to $3.75M |
25% |
Standard protection |
| SBA Express |
50% |
Up to $250K |
50% |
Higher lender share |
Two flagship programs, different use cases: The 7(a) is the most flexible — working capital, acquisitions, equipment, real estate. The 504 is purpose-built for fixed assets (real estate and major equipment) with a unique 3-party structure that delivers long-term fixed rates.
Source: SBA Office of Capital Access
| Feature | SBA 7(a) | SBA 504 |
|---|
| Max Loan Amount | $5,000,000 | $5.5M (CDC) + unlimited 1st |
| Use of Proceeds | Flexible (multiple) | Fixed assets only |
| Min Down Payment | 10% | 10% (15–20% startups) |
| Rate Type | Variable (Prime +) | Fixed (CDC) + Variable (bank) |
| Max RE Term | 25 years | 25 years |
| Working Capital? | ✓ Yes | ✗ No |
| Job Creation Required? | Not required | 1 job / $75K |
| SBA Guarantee | 75–85% | 100% on CDC debenture |
| Typical Closing Time | 45–75 days (PLP) | 60–120 days |
1st Mortgage — Bank
50%
$500,000
Conventional loan · Variable rate
Bank underwrites independently
2nd Mortgage — CDC/SBA
40%
$400,000
Fixed rate · 10, 20, or 25-yr term
100% SBA guaranteed
Borrower Equity
10%
$100,000
Down payment injection
(15–20% for startups)
* Special-use properties and startups require 15–20% down. Source: SBA.gov