List of SBA Loan Default Rates by Bank?

searcher profile

February 04, 2025

by a searcher from University of Minnesota - Twin Cities Campus in Marysville, WA, USA

Hi everyone! Is there a list out there that details SBA loan defaults by bank? For example, maybe Bank A has a loan default rate of 1% versus Bank B with its loan default rate of 5%.

I would likely be using this is a measure of stringency of underwriting by different banks, as well as their success rates at backing successful acquisitions.

Thanks!

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commentor profile
Reply by a lender
in Stuart, FL, USA
Hi Jessi, that might make for a nice academic exercise but every deal stands on it's own merit. Unless it is flat out, a business type that lender doesn't do, the lender is going to make the loan if it is a good deal. That said, "good deal" means different things to different lenders.

While the default rate may seems like an determining economic factor, you will be better served by looking at your individual deal. Think of your deal as a "risk sandwich". If the sandwich is too big, the lender will have a hard time swallowing it. Try to find way to strip out the onions and welted lettuce and make the sandwich more palatable to the lender.

No two deals are alike. My company has done hundreds and hundreds of deals. I could care less about the default rate of the lender. If the deal is structured the best it can be and it gets sent to the right lender, it will close. Hope this helps.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I concur with the comments already made. I do not believe that data is reported by the SBA. I am sure they have that as they regulate the Banks, but I have never seen it published. However, those numbers could easily be skewed anyway depending on the type of lending an SBA lender is doing. If they are doing Micro-lending as an example, the default rate for small Express SBA loans is significantly higher than for more traditional SBA loans. In addition, if they have a vertical that was hit hard like restaurants or gyms (like they were hit during the pandemic) that could also skew the numbers. Happy to talk about specific lenders and their strengths and what we have seen. We have been doing this a long time. You can reach me here or directly at redacted
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