SBA lending reached record levels in fiscal year 2025. This guide explains SBA loan types, how lending volume varies by state and lender, and when a lender-grade feasibility study may be necessary.
Preparing an SBA application? See our SBA feasibility study consultants service — independent studies built to SOP 50 10 underwriting standards.
The U.S. Small Business Administration reported approximately 84,400 SBA 7(a) and 504 loan guarantees totaling $44.8 billion during fiscal year 2025.
| SBA program | FY2025 loan count | FY2025 dollar volume |
|---|---|---|
| SBA 7(a) | 77,600 | $37 billion |
| SBA 504 | 6,750 | $7.8 billion |
| Combined | Approximately 84,400 | $44.8 billion |
The SBA’s later annual report rounded the combined results to approximately 85,000 loans and $45 billion. The difference is attributable to rounding and reporting timing rather than a fundamentally different lending result.
These figures demonstrate the scale of the SBA lending market. They do not mean that financing is distributed evenly among states, industries or lenders. Approval volume is influenced by local business formation, population, real estate costs, lender participation, industry concentration and the availability of active Certified Development Companies.
An SBA loan is generally made by an approved bank, credit union, nonbank lender, Certified Development Company or nonprofit intermediary. The SBA reduces a lender’s risk by guaranteeing a portion of qualifying loans rather than directly funding most ordinary business loans.
The principal SBA financing options include:
The 7(a) program is the SBA’s primary business-loan program. It can support business acquisitions, working capital, equipment purchases, owner-occupied real estate, partner buyouts, eligible refinancing and other approved business purposes. Major 7(a) delivery methods and subprograms include:
The appropriate option depends on the use of proceeds, loan size, collateral, maturity, borrower qualifications and lender policy. SBA program eligibility does not guarantee approval because each lender must still determine that the loan is prudent and repayable. Our guide to SBA 7(a) feasibility studies covers projection-based underwriting in detail.
The SBA 504 program provides long-term, fixed-rate financing for major fixed assets that support business growth and job creation. Financing is delivered through SBA-regulated Certified Development Companies, commonly called CDCs. Typical 504 uses include:
A 504 transaction commonly combines a first mortgage from a third-party lender, an SBA-backed debenture administered through a CDC and an equity contribution from the borrower. See what CDCs and lenders require in a 504 feasibility study.
The Microloan program provides smaller loans through nonprofit intermediary lenders. Microloans are generally intended for working capital, inventory, supplies, fixtures, machinery and equipment. They are not structured as substitutes for larger real estate–oriented 7(a) or 504 transactions. The SBA identifies 7(a), 504 and Microloans as separate core loan programs.
SBA disaster financing is separate from ordinary 7(a), 504 and Microloan activity. These loans may become available after qualifying declared disasters and are governed by different eligibility and servicing procedures.
SBA lending varies significantly from state to state. Large states with substantial small-business populations will ordinarily generate more approvals than less-populated states. However, total volume alone does not show the full picture.
A useful state analysis should compare:
California, Texas, Florida and other large commercial markets frequently account for significant dollar volume, but a smaller state can have a higher rate of SBA lending relative to its business population. Borrowers should therefore avoid assuming that the lender with the highest national volume is necessarily the most suitable lender for a particular state, project type or industry.
The SBA maintains an interactive lender report that allows users to filter approvals by:
As of July 7, 2026, the SBA’s live workbook contained current state-and-lender approval data. Because it changes during the fiscal year, it is the appropriate source for an up-to-date 50-state analysis. State figures should always be read against — and published with — a clear “as of” date.
SBA lenders differ in far more than approval count. Some lenders concentrate on small working-capital loans. Others specialize in acquisitions, hospitality, healthcare, professional practices, franchises, manufacturing or owner-occupied real estate.
Public estimates (may be outdated): a fiscal-year 2025 industry ranking reported the following leading 7(a) lenders by dollar volume:
The SBA confirmed that Live Oak Bank was the most active fiscal-year 2025 SBA 7(a) lender by dollar amount. Exact rankings and volumes should always be verified against the SBA’s official lender activity reports.
A lender’s size does not automatically make it the best lender for every borrower. Compare:
A high-volume lender may offer specialized expertise and efficient systems. A regional or community lender may offer more local knowledge and direct access to decision-makers. The strongest match depends on the transaction.
The following contacts are intended as starting points, not endorsements. Programs, lending territories and underwriting standards can change.
Live Oak is a national SBA Preferred Lender with specialized lending teams serving multiple industries. Its SBA team handles acquisitions, partner buyouts, real estate purchases and other qualifying transactions. Prospective borrowers can use the bank’s official SBA inquiry process to connect with an industry lender.
Newtek Bank provides SBA and other business-lending options through its lending specialists and online prequalification process. Its official corporate contact number is 1-855-763-9835.
Huntington offers business banking and SBA lending in its service markets. Prospective borrowers can contact its Business Direct team through the bank’s official small-business contact page.
Northeast Bank operates a national lending division and is an SBA Preferred Lender. Its SBA and USDA division offers an official inquiry process for borrowers seeking working capital and other qualifying financing.
Borrowers seeking an SBA 504 loan should also contact a Certified Development Company serving the project location. A CDC helps structure and administer the SBA-backed portion of a 504 transaction. The SBA regulates participating CDCs and provides official program resources for locating appropriate financing partners.
There is no accurate rule stating that every SBA 7(a) loan or every SBA 504 loan automatically requires an independent feasibility study.
SBA loan origination is governed by SOP 50 10, together with subsequent notices, lender policies and transaction-specific underwriting requirements. The lender or CDC determines what analysis is necessary to establish eligibility, creditworthiness, repayment ability and prudent lending. Our companion guide covers SBA feasibility study requirements under SOP 50 10 8 in detail.
A lender is more likely to require an independent feasibility study when a project involves:
A startup cannot demonstrate repayment ability through several years of historical operating results. The lender may therefore need independent support for market demand, revenue assumptions, the ramp-up period, operating costs, staffing, pricing, break-even performance and debt-service capacity.
An established company may have historical results, but those results do not necessarily validate a new market, larger facility or materially different operating model.
Hotels, assisted-living facilities, marinas, entertainment venues, sports facilities, event centers, fuel stations, healthcare facilities, self-storage projects and other specialized properties may require analysis beyond a conventional appraisal.
An appraisal estimates property value. A feasibility study evaluates whether the proposed business operation can generate sufficient demand, revenue and cash flow.
Construction transactions introduce additional risks, including completion risk, cost overruns, delayed opening, lease-up or occupancy risk, working-capital shortfalls, contractor and supply-chain risk, interest carry and market changes during construction.
A feasibility study may be needed when an operator has experience but little evidence that the concept will perform at the proposed location.
Examples include converting a retail operation into a membership model, adding lodging to an entertainment concept or combining several revenue centers within one development.
A lender may request independent analysis when acquisition projections depend on rapid growth, unusual cost savings, major capital improvements or a significant change in management.
Established franchise systems may provide useful performance data, but a lender may still require independent local-market analysis. Emerging brands with few comparable operating locations generally require closer scrutiny.
Projects involving novel technology, unusual customer demand, a specialized trade area or multiple integrated uses may require a consultant to develop and defend assumptions from primary and secondary research.
The lender ultimately determines the required third-party reports. Borrowers should obtain the lender’s written scope before commissioning a study. See when a lender should order the feasibility study.
A lender-grade feasibility study should integrate five major areas.
Defined primary and secondary market areas, customer characteristics, demand drivers, market size, growth trends, competitive supply, comparable operations, pricing, occupancy or utilization, market penetration and demand capture.
Population and household trends, employment, income, business formation, tourism or visitation where relevant, major employers, development activity and industry conditions.
Site suitability, facility capacity, development schedule, equipment, staffing, licensing, supply chain, utilities and operational constraints.
Ownership experience, management qualifications, staffing plan, organizational structure, key-person dependencies and outside professional support.
Sources and uses, revenue assumptions, operating expenses, working-capital needs, profit-and-loss projections, cash flow, break-even analysis, debt-service coverage, sensitivity analysis and downside scenarios.
The conclusions must connect the market evidence to the financial projections. A report that presents demographic tables but never demonstrates how those conditions support revenue is not a complete feasibility analysis.
Borrowers often compare feasibility-study proposals as though each consultant is delivering an identical product. They are not.
The cheapest report can become the most expensive option when it:
A feasibility study is not simply a marketing document for the project. Its purpose is to provide an independent, defensible assessment that a lender, CDC, credit committee or SBA reviewer can evaluate. Our analysis of why feasibility studies get rejected shows how often this goes wrong.
Saving several thousand dollars on the report can be a poor trade when the underlying financing request is worth several million dollars and the wrong consultant creates a delay, credibility problem or denial.
Before selecting a consultant, ask:
The correct question is not, “Who has the lowest price?” It is, “Whose work gives the lender the clearest, most defensible basis for evaluating this transaction?”
Wert-Berater, Inc. has operated as an independent feasibility-study consulting firm since 1998, preparing studies for SBA, USDA, conventional, institutional and other financing contexts. The firm’s track record includes:
Project experience spans hospitality, sports and recreation, manufacturing, agricultural processing, cold storage, marinas, wellness facilities, mixed-use development and specialized real estate. This breadth matters when a project cannot be evaluated through a generic market template.
SBA reports are organized for lender and CDC review and are designed around applicable SBA underwriting considerations, including the pro forma standards lenders actually apply.
A credible feasibility consultant should not have a financial interest in whether the project is approved, constructed, brokered or financed. Independence protects the integrity of the conclusions — in every Wert-Berater engagement, the fiduciary duty runs to the lender and agency.
The value of a feasibility study lies in connecting measurable demand to achievable revenue, expenses, cash flow and debt-service capacity — not in filling pages with unrelated statistics.
A useful report should identify weaknesses and test the transaction under realistic downside conditions. An analysis that assumes everything will go according to plan gives the lender little insight into actual risk.
Lender review frequently produces follow-up questions. A consultant’s ability to explain methods, provide sources and revise reasonable points can be as important as the initial report.
To receive a project-specific scope, prospective clients should provide: project location, project type, estimated development or acquisition cost, requested loan amount, the SBA program under consideration, startup, expansion or acquisition status, the lender or CDC contact, proposed opening date, any existing business plan and projections, and the lender’s written feasibility-study requirements. Contact Wert-Berater or schedule a qualification Zoom to get started.
Do not commission a feasibility study solely because a broker, seller or online checklist says one is needed. First ask the lender or CDC:
This prevents scope disputes and reduces the risk of paying for a report the lender cannot use.
SBA lending provides billions of dollars in capital to American businesses each year, but program selection and underwriting requirements vary widely.
A 7(a) loan may be appropriate for acquisitions, working capital, equipment and flexible business purposes. A 504 loan may be better suited to long-term financing of owner-occupied real estate and major fixed assets. Microloans serve smaller capital requirements through nonprofit intermediaries.
For straightforward transactions, ordinary financial and credit documentation may be sufficient. For startups, special-purpose properties, construction projects and other projection-dependent transactions, a lender may require an independent feasibility study.
When that happens, selecting a consultant based only on price can jeopardize a much larger financing objective. The report must withstand lender scrutiny, connect market evidence to financial performance and clearly address the risks that determine repayment ability.
The best first step is to confirm the study requirements with the proposed SBA lender or CDC. The next is to select an experienced, independent consultant whose work is appropriate for the industry, project and financing structure.
No. Many 7(a) loans are underwritten using tax returns, interim financial statements, business plans, projections, collateral information and other ordinary credit documents. A feasibility study is more likely for a startup, special-purpose property, major expansion, construction project, novel concept or transaction with projections that require independent validation.
No. However, construction projects, startups, specialized facilities and transactions with significant operating risk are more likely to require one. The CDC and participating lender determine the necessary underwriting documentation.
No. A business plan explains management’s strategy and operating plan. A feasibility study independently tests whether the market, operations and financial assumptions are supportable. See our comparison of business plans and feasibility studies in SBA applications.
No. An appraisal generally addresses the value of real property or other collateral. A feasibility study evaluates whether the proposed business or project is likely to attract sufficient demand and generate adequate cash flow.
Sometimes. The lender may permit the borrower to select a qualified consultant, require approval before engagement or choose the consultant directly. Confirm the process before signing an agreement.
Not automatically. Compare relevant experience, SBA knowledge, research methods, independence, financial-analysis capability, lender acceptance and post-delivery support. Price should be considered, but it should not be the sole selection criterion.
Rankings can change monthly as lenders approve additional loans during the federal fiscal year. Use an exact “as of” date whenever publishing lender or state volumes.
Disclaimer: This article is for general informational and marketing purposes and is not legal, accounting, investment or lending advice. SBA rules, lender requirements, program limits, contact details and lending volumes can change. Borrowers should confirm current requirements with the SBA, their lender, CDC and professional advisers. References to lenders do not constitute endorsements or guarantees of approval. Lending figures are presented as reported for federal fiscal year 2025 and should be verified against the SBA’s current official reports.
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. More than 4,000 feasibility studies completed across all 50 states and internationally, evaluating $40.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
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Schedule a ConversationSpeak with Wert-Berater about your proposed SBA 7(a) or 504 transaction. Provide the project location, requested financing, development budget and lender requirements to receive a project-specific scope. Independent feasibility studies since 1998: 4,000+ engagements, $40.2 billion in evaluated project value.