Liquor stores are an acquisition industry in the SBA program: of 1,530 7(a) loans between October 2023 and June 2026, about $1.19 billion from 241 lenders, 37.3% financed the purchase of an existing store, at a median of $735,000 and 9.5%. The median loan overall was $500,000 at 9.75%, well above the national median of $150,300. Lenders decide on sales the tax returns support, the transfer of the liquor license, how the inventory is counted and paid for at closing, and a lease or real estate that secures the location for the life of the loan.
| Measure | Beer, Wine, and Liquor Retailers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 1,530 | 162,355 |
| Median loan | $500,000 | $150,300 |
| Middle half of loans | $200,000 – $999,875 | $50,000 – $500,000 |
| Loans of $1 million or more | 25% | 12.9% |
| Median rate at approval | 9.75% | 10.25% |
| Middle half of rates | 8.99% – 10.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 571 (37.3%) | 16,849 (10.4%) |
| Median acquisition loan | $735,000 | $693,000 |
| Lenders that made these loans | 241 | 1,648 |
| SBA 504 loans (real estate, equipment) | 84 | 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
- 1,530 (Oct 2023 – Jun 2026)
- Median loan
- $500,000
- Median rate at approval
- 9.75%
- Store purchases
- 571 loans (37.3%), median $735,000
- Loans of $1 million or more
- 383 (25%)
- Lenders that approved one
- 241
What SBA lenders approved for liquor stores
Beer, wine and liquor retailers (NAICS 445320) took 1,530 SBA 7(a) loans from FY2024 through June 2026, worth $1,193,194,400, from 241 lenders. The median loan of $500,000 is more than three times the national median of $150,300. The middle half ran from $200,000 to $999,875, the top tenth started at $1,717,400, and a quarter of loans, 383 of them, were $1 million or more.
The acquisition share is what sets this industry apart. 571 loans, 37.3%, financed the purchase of an existing store, against 10.4% across all industries. Start-ups were only 10.7%, and franchises barely register at 0.5%. For many owners, the way into this business is to buy a store that already has its license, its location and its customers.
| Figure | Liquor stores | What it tells you |
|---|---|---|
| Median loan | $500,000 | More than three times the national $150,300: purchases and inventory |
| Middle half of loans | $200,000 to $999,875 | Smaller stores and inventory at the low end; purchases with real estate at the top |
| Loans of $1 million or more | 383 (25%) | Larger stores, often with the building |
| Median rate at approval | 9.75% (middle half 8.99% to 10.5%) | Under the national 10.25%: larger loans face lower caps |
| Fixed-rate share | 10.1% | Most loans float |
| Acquisitions | 571 loans (37.3%), median $735,000 at 9.5% | More than three times the national 10.4% share |
| Start-ups | 10.7% of loans | New licenses are hard to come by in some places |
| Franchises | 0.5% of loans | An independent-owner industry |
| SBA Express | 18.2% of loans | Inventory and fit-out needs up to $500,000 |
| Median jobs supported | 4 | An owner-run store with a small staff |
What the purchase price buys, and how lenders treat each part
A liquor store price usually has three or four parts, and a lender looks at each on its own terms. How the letter of intent splits the price affects the loan's maturity, the collateral and whether SBA's valuation rule applies.
| Part of the price | How the lender treats it |
|---|---|
| The liquor license | Issued and transferred by the state or locality. In places that limit the number of licenses it can carry real value, and in some states a lender cannot take a lien on it. The transfer must be approved for the loan to close |
| Inventory | Counted at closing and paid for at cost. Lenders verify the count, and inventory is often financed on the loan rather than treated as equity |
| Goodwill | The store's customers and sales history. Financed over up to 10 years, and the reason a business valuation is often required |
| Real estate | Where the building is included, up to 25 years, and often the strongest collateral in the deal |
| Fixtures and equipment | Coolers, shelving, point-of-sale systems. Up to 10 years, and modest collateral value |
Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation, and the loan for the purchase cannot exceed it. Because the license and goodwill usually make up much of a liquor store's price, most purchases above a small size cross that line. See the SBA business valuation and financing a liquor store acquisition.
Cash sales and the tax return
Liquor stores take a lot of cash. Sellers sometimes tell buyers the store makes more than its returns show. Lenders do not lend on that. SBA underwriting runs on filed tax returns, and income a seller did not report cannot be used to support debt, however convincing the register tapes look. A buyer who pays a price based on unreported cash is paying for earnings no lender will count. See seller financials vs tax returns.
Within the reported figures, lenders look at gross margin by category (spirits, wine, beer, and any tobacco, lottery or convenience items), shrink and theft, the competitive picture within a short drive, and the lease. A store's location is most of its business, so lenders commonly want the remaining lease term, counting options, to run at least as long as the loan.
SBA requires debt service coverage of at least 1.15x, and from 1 October 2026 a change of ownership must show 1.25x on historical results. A store with reported cash flow of 1,250 against annual payments of 1,000 covers 1.25x. The buyer's own salary is deducted before that test when the buyer will run the store, which is the usual case here. See buyer salary in acquisition coverage.
Structuring a store purchase
- Equity. At least 10% of total project costs. A seller note counts toward half of it only if it is on full standby, with no principal or interest paid, for the life of the SBA loan.
- No earnout. SBA prohibits one in a change of ownership it finances, so disagreements about the store's real earnings have to be settled in the price.
- Inventory at closing. The final count sets the final price. The loan should be sized for a range, with the working capital the store needs after closing on top. See working capital at close.
- The license timeline. Transfer approval runs on the licensing authority's schedule, and closing waits for it.
- The seller's role. 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.
- Due diligence. From 1 October 2026 SBA requires financial due diligence on every change of ownership, and a quality of earnings report on acquisitions of $3 million or more excluding real estate.
When the building is part of the deal, it can go on the 7(a) at up to 25 years, or on an SBA 504: 84 liquor store projects used 504 in the period, at a median of $652,000. See buying a business with its real estate.
Settle how the price splits between license, inventory, goodwill and real estate before the letter of intent is signed. The loan follows that split.
Preparing a liquor store 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 buyer's resume for Form 1919. For a purchase, add the letter of intent and the seller's latest full year of figures, never an older year.
Add point-of-sale reports by month and by category, the most recent inventory listing, the license and its transfer application, the lease or the property details, and sales tax filings, which lenders use to check reported sales. A store that has been paying off merchant cash advances should know that SBA will not refinance an active advance; see refinancing cash advances for liquor stores.
Transparent builds 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. On SBA loans the lender pays Transparent, not the borrower. See the package.
Common questions
- How much do I need down to buy a liquor store with an SBA loan?
- SBA requires an equity injection of at least 10% of total project costs for a change of ownership. A seller note can count toward up to half of that only if it is on full standby for the life of the SBA loan.
- Can an SBA loan pay for the liquor store's inventory?
- Yes. Inventory is usually counted at closing and financed as part of the purchase, and the loan can also carry working capital for after closing. Lenders verify the count.
- Will a lender count the store's unreported cash sales?
- No. SBA lenders underwrite on filed tax returns. Income the seller did not report cannot support the loan, so a price based on it is a price no lender will finance.
- What rate do liquor stores get on SBA loans?
- From October 2023 to June 2026 the median rate at approval was 9.75%, with the middle half between 8.99% and 10.5%. Store purchases had a median rate of 9.5%, both under the national median of 10.25%.
- Can the lender take a lien on the liquor license?
- It depends on the state. Some states allow a security interest in a license and some do not. Either way, the license must transfer to the buyer before the loan can close.