SBA Loan Default Rate Creeping Up to 3.69%

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by a lender from University of Southern California
in Los Angeles, CA, USA

1yr ago

SBA Loan Default Rate Creeping Up to 3.69%

Just wanted to share this data point: The SBA 7(a) loan default rate for FY 2024 is 3.69%. While this is a general rate, default rates for SBA-financed acquisitions are likely 1-2% higher. Still, it’s a helpful proxy for understanding business failure risk in small business acquisitions. SBA loans and business acquisitions via SBA loans are still a great way to build life changing wealth for ambitious operators.

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Would love to help you with your SBA loan. The bank pay us after your loan closes, so this is a 100% free service for you. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: redacted Look forward to chatting!

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reply by a searcher 1yr ago
from INSEAD in Boston, Massachusetts, EE. UU.

^redacted‌ thanks for the great insight! This is a great baseline for searches to have in mind when considering a SBA. However, what I have been seeing are final rates offered to searchers always above 7%. Definitely, there are many factors considered by lenders when setting the final rate.

reply by a searcher 1yr ago
from Brigham Young University in Salt Lake City, UT, USA

SBA loans are great but I think that number is higher. Searchers taking on other jobs to pay for the loan, banks not collecting every detailed financial statement every few months to stay compliant with the SBA so they can't report it, etc.