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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