SBA backed $39.5 billion of loans in fiscal 2026 as 7(a) loan counts fell 26%
The agency guaranteed fewer loans after a 43-day shutdown, but each 7(a) loan got bigger, a shift that changes who competes for small commercial buildings and businesses for sale.
By Alex Pham · · 3 min read
Small businesses borrowed $32.4 billion through 56,130 SBA 7(a) loans and $7.1 billion through 6,075 504 loans in the fiscal year that ended Sept. 30 [1]. The agency said the shutdown kept it from guaranteeing an estimated $5 billion, about $170 million each business day [1].
| Program, FY2026 | Loans | Dollars | Average loan (our calculation) |
|---|---|---|---|
| 7(a) | 56,130 | $32.4B | $577,000 |
| 504 | 6,075 | $7.1B | $1,169,000 |
| Combined | 62,205 | $39.5B | $635,000 |
Loan counts dropped faster than dollars, so average loans grew
M&T Bank, in a release on its own results, put the industrywide decline in 7(a) loan counts at 26% and in dollars at 12% [2]. If both figures hold, the average 7(a) loan grew about 19% in a year, by our math.
The lender mix shows the split. Live Oak’s 2,411 loans averaged about $1.07 million, and M&T’s 2,975 averaged about $110,000, we calculate from the banks’ releases [2][3].
Construction and manufacturing firms borrowed $7 billion
Construction and manufacturing businesses received $7 billion across 11,790 loans, and rural businesses got $6.5 billion across 10,314 [1]. More than 9,700 startups borrowed $6.5 billion [1]. The agency’s 90% Made in America Guarantee backed 149 loans worth nearly $300 million [1].
How to use this
For sellers and landlords of small commercial buildings
- Market owner-user buildings to SBA borrowers, and ask buyers for an SBA lender’s term sheet before you accept an offer. The average 504 loan was about $1.17 million [1], a size that fits a single-tenant shop, office or flex building.
- Plan for a longer closing. SBA loans add a federal guarantee step, and the agency said the shutdown stopped about $170 million of guarantees per business day [1]. Put a closing extension of 30 days, with a deposit that goes hard on approval, in the contract.
- Point independent grocers toward the program if you have a grocery box to fill. The SBA’s 90% Grocery Guarantee backed 79 loans worth $145 million in fiscal 2026 [1], about $1.8 million each, we calculate.
For small business owners and buyers
- Ask more than one lender, since lender focus differs. M&T made 2,975 loans averaging about $110,000, while Live Oak’s averaged about $1.07 million [2][3], so a $150,000 equipment loan and a $2 million practice purchase usually fit different banks.
- Ask your local SBA district office which lenders lead in your area. M&T said it ranked first in 10 SBA districts, and its New England approvals rose to 588 in fiscal 2026 from 107 in fiscal 2022 [2], which shows how fast a regional leader can change.
For contractors and investors
- Contractors can point clients that want a building to the 504 program. Construction and manufacturing firms took $7 billion of fiscal 2026 SBA loans, about $594,000 each, we calculate [1].
- Track 7(a) counts next to dollars in fiscal 2027. A 26% drop in counts against a 12% drop in dollars [2] means fewer, bigger borrowers, which concentrates risk for buyers of SBA loan pools and for landlords leaning on SBA-financed tenants.
This is market commentary, not investment advice.
Sources
- [1]U.S. Small Business Administration, SBA Fuels Main Street Growth with $100 Billion Delivered in FY26 (news release 26-113), Nov 2, 2026.
- [2]M&T Bank (via PR Newswire), M&T Bank Ranks No. 1 in SBA 7(a) Lending Across its Footprint, Achieves Record Small Business Loan Growth, Oct 14, 2026.
- [3]Live Oak Bancshares (via GlobeNewswire), Live Oak Bank Named Nation’s Top SBA 7(a) Lender, Oct 19, 2026.
