Home furnishings stores outside furniture, flooring and window treatments — décor, kitchenware, linens, lighting and similar shops — took 230 SBA 7(a) loans from October 2023 to June 2026, about $79 million from 98 lenders. The median loan was $150,000, level with the national $150,300, at a median rate of 10.5%. A third of loans were SBA Express. Lenders size the loan on cash flow rather than inventory, and look hard at margins, markdowns, the lease and how dependent sales are on the fourth quarter. Store purchases were 13.9% of loans, at a median of $415,050, over the national acquisition share of 10.4%.
| Measure | All Other Home Furnishings Retailers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 230 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $75,000 – $350,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 9.1% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 32 (13.9%) | 16,849 (10.4%) |
| Median acquisition loan | $415,050 | $693,000 |
| Lenders that made these loans | 98 | 1,648 |
| SBA 504 loans (real estate, equipment) | 25 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- SBA 7(a) loans approved
- 230 from 98 lenders (Oct 2023 – Jun 2026)
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- SBA Express
- 32.2% of loans
- Acquisitions
- 32 loans (13.9%), median $415,050
- SBA 504
- 25 projects, median $935,000
What SBA lenders approved for home goods stores
NAICS 449129, all other home furnishings retailers, is the catch-all for stores that sell the contents of a home rather than its furniture or floors: kitchenware and cookware shops, bed and bath stores, lighting showrooms, home décor and accent stores, and similar specialty retailers. Between October 2023 and June 2026 they took 230 SBA 7(a) loans worth $79,276,300 from 98 lenders.
The median loan, $150,000, is effectively the national median of $150,300, but the spread is wide. The middle half ran from $75,000 to $350,000, the 90th percentile reached $943,200, and 21 loans, 9.1%, were $1 million or more. The small end is a shop refreshing its inventory or fitting out a second location; the large end is usually a purchase of an established store or a building.
| Figure | Home furnishings retailers | What it tells you |
|---|---|---|
| Median loan | $150,000 | In line with the national $150,300 |
| Middle half of loans | $75,000 to $350,000 | Inventory, fit-out and working capital |
| 90th percentile | $943,200 | Store purchases and owner-occupied buildings |
| Median rate at approval | 10.5% (middle half 9.5% to 11.25%) | A quarter point over the national 10.25% |
| Fixed-rate share | 15.2% | Most loans float with the base rate |
| SBA Express | 32.2% of loans | Smaller needs, on the lender's own credit process |
| Acquisitions | 32 loans (13.9%), median $415,050 at 9.63% | Above the national 10.4% |
| Start-ups | 10.9% of loans | New stores are financed, but less often |
| SBA 504 | 25 projects, median $935,000 | Owners buying the building they trade from |
Inventory is the asset, and the lender discounts it
A home goods store carries a lot of stock relative to its sales: many SKUs, several colorways, seasonal lines bought months ahead. To the owner that inventory is the business. To a lender it is collateral of uncertain value. Décor goes out of style, kitchenware competes with every online seller, and a liquidator buying a store's shelves pays a fraction of cost. Where lenders lend against inventory at all, they typically advance up to 85% of net orderly liquidation value, or roughly half of cost, and for fashion-driven home goods the liquidation value can be well under half.
So an SBA lender underwrites the store on cash flow and treats the stock as secondary. SBA requires debt service coverage of at least 1.15x; banks lending conventionally commonly look for 1.25x. What the lender tests is whether the store turns its inventory into cash at a margin that covers the payment. See inventory advance rates and net orderly liquidation value.
| What the lender looks at | What a strong store shows |
|---|---|
| Gross margin over time | Stable or rising margins, not held up by skipped markdowns |
| Inventory turns | Stock that sells through within its season rather than sitting on the floor |
| Aged inventory | Little stock more than a season old, and a clear record of clearing it |
| Sales by quarter | A fourth quarter that matters without carrying the whole year |
| Channel mix | Online or wedding-registry sales that add to the store rather than replace it |
| Supplier terms | Payment terms from vendors that fund part of the stock, paid on time |
The fourth quarter and the lease
Gift-giving and hosting season drives much of the year in this category, and sales also follow the housing market: people furnish a home when they buy one. A store that makes most of its profit between Thanksgiving and New Year pays a monthly loan payment all year, so lenders look at monthly sales and the cash low point in late summer, when stock for the holidays has been bought and not yet sold. A term loan that also has to fund that build is often the wrong tool; a seasonal line sized to the inventory cycle usually fits better. See seasonal lines of credit.
Most of these stores rent, often in shopping centers or downtown retail districts where the location is part of the value. The lender wants a lease, with options, that runs at least as long as the loan, and in a purchase the landlord's consent to assign it. A store with two years left on its lease and no renewal option is a hard file at any price. See lease assignment in an acquisition.
A home goods store with a short lease, aging stock and a single strong quarter is three concerns in one file; fixing the lease is usually the cheapest of the three.
Buying an established store
Purchases were 32 loans, 13.9% of lending in the category and above the national 10.4%, at a median of $415,050 and 9.63%. That is nearly three times the category's median loan: an established store with a following and a good location is worth buying, and lenders are more comfortable with a record than with a new concept. Start-ups were 10.9% of loans and franchises 3%.
- Inventory in a store purchase should be counted at closing and priced separately from goodwill, at cost or less, with slow and obsolete stock excluded. A price that counts stock at retail overstates what the lender will finance, and the independent valuation will not follow it.
- Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation, and the purchase loan cannot exceed it. See the SBA valuation requirement.
- The buyer puts in at least 10% of total project costs. A seller note counts toward half of that only if it is on full standby for the life of the SBA loan. See equity injection.
- The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, but may not stay on as an owner, officer or employee. In a store built on the owner's taste and supplier relationships, the handover of vendors and buying calendars matters most.
- From 1 October 2026, a change of ownership must show 1.25x debt service coverage on historical results, with financial due diligence on every purchase.
Express, standard 7(a) and 504
SBA Express was 32.2% of loans. It goes up to $500,000 with a 50% guaranty, against 85% on a standard 7(a) of $150,000 or less and 75% above that. For restocking or a refit, Express is common; for a purchase or a refinance, a standard 7(a) gives the lender more guaranty and the borrower more room. See SBA 7(a) vs SBA Express.
The 504 program financed 25 projects at a median of $935,000: store owners buying the building they trade from. A 504 loan typically splits the project 50% bank, 40% CDC and 10% borrower, and the borrower must occupy at least 51% of an existing building. A store with apartments or offices above it can qualify if the store's share meets that test. See 504 vs a conventional mortgage.
Cash advances and refinancing
Retailers are frequent targets for merchant cash advances, sold against card sales at exactly the moment holiday inventory has to be bought. SBA will not refinance an active merchant cash advance. From 1 October 2026 an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. Refinancing other debt with a 7(a) requires the new payment to be at least 10% lower and the debt current for the last 12 months. See refinancing cash advances for retailers and MCA refinance.
Preparing a home furnishings store's file
The SBA list: 2–3 years of business tax returns, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more, with the owner's resume for Form 1919.
Add monthly sales for at least two years, an inventory report by category and age, the store lease with its options, a list of main suppliers and their terms, and point-of-sale reports that split in-store from online sales. For a purchase, the letter of intent and the store's latest full year of figures. Transparent turns the file into a full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and takes it to the lenders in its book that write SBA 7(a) and 504, 278 of them. Nothing is charged before closing, and on SBA loans the lender pays Transparent. See the package and how we underwrite.
Common questions
- Will an SBA lender lend against my store's inventory?
- It will take a lien on it, but it rarely sizes the loan to it. Inventory typically advances at up to 85% of net orderly liquidation value, or roughly half of cost, and décor and seasonal goods liquidate for less. The loan is sized to cash flow.
- What rate do home goods stores pay on SBA loans?
- The median rate at approval from October 2023 to June 2026 was 10.5%, with the middle half between 9.5% and 11.25%, against a national median of 10.25%. Store purchases, which are larger loans, had a median of 9.63%.
- Can I buy a home décor store with an SBA loan?
- Yes. Purchases were 13.9% of SBA loans in this category, at a median of $415,050. Expect to put in at least 10% of total project costs, and to have the inventory counted and priced separately at closing.
- My sales are mostly in the fourth quarter. Does that hurt?
- It changes the structure more than the answer. Lenders look at the cash low point before the holidays; a seasonal line of credit for the inventory build often sits alongside a smaller term loan.