Broiler growers take some of the largest and cheapest SBA loans of any small industry, from very few lenders. From October 2023 to June 2026, 16 lenders approved 233 SBA 7(a) loans to meat-chicken producers, about $424 million, at a median of $1,334,000 and a median rate of 8.25%, against $150,300 and 10.25% nationally. The median term was 216 months, because the loans finance land and poultry houses. Lenders underwrite the integrator contract first: how long it runs, the grower's settlement history, and what the houses are worth if birds stop arriving.
| Measure | Broilers and Other Meat Type Chicken Production | All industries |
|---|---|---|
| SBA 7(a) loans approved | 233 | 162,355 |
| Median loan | $1,334,000 | $150,300 |
| Middle half of loans | $690,000 – $3,014,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 64.8% | 12.9% |
| Median rate at approval | 8.25% | 10.25% |
| Middle half of rates | 7.8% – 8.75% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 53 (22.7%) | 16,849 (10.4%) |
| Median acquisition loan | $1,240,000 | $693,000 |
| Lenders that made these loans | 16 | 1,648 |
| SBA 504 loans (real estate, equipment) | — | 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
- 233 from 16 lenders (Oct 2023 – Jun 2026)
- Median loan
- $1,334,000 (national $150,300)
- Median rate at approval
- 8.25% (national 10.25%)
- Median term
- 216 months
- Acquisitions
- 53 loans (22.7%), median $1,240,000
- Start-ups
- 40.3% of loans
Few lenders, large loans, long terms
Broilers and other meat-type chicken production (NAICS 112320) took 233 SBA 7(a) loans from FY2024 through June 2026, worth $423,611,600. Only 16 lenders made them. Poultry is a specialist's market: a bank that has never read a grower agreement tends to decline the file or misprice it, so which lender sees the file matters more here than in most industries.
The loans are large for an industry with a median of two jobs per loan. The median was $1,334,000, the middle half ran from $690,000 to $3,014,000, and the 90th percentile was $3,933,400, close to the $5 million 7(a) ceiling. 151 loans, 64.8% of the total, were $1 million or more. A farm is land, long houses and the ventilation, feeding and heating equipment inside them, and costs far more than its payroll suggests.
| Figure | Broiler production | National | What it says |
|---|---|---|---|
| Median loan | $1,334,000 | $150,300 | Farms and houses, not working capital |
| Middle half of loans | $690,000 to $3,014,000 | Even the small loans are large | |
| Median rate at approval | 8.25% (middle half 7.8% to 8.75%) | 10.25% | Large loans fall under SBA's lowest rate cap |
| Fixed-rate share | 61.8% | Most growers lock the rate on a long loan | |
| Median term | 216 months | Real estate maturities, blended with equipment | |
| Acquisitions | 53 loans (22.7%), median $1,240,000 at 8.15% | 10.4% | Farms change hands often |
| Start-ups | 40.3% of loans | New growers and new farms | |
| SBA Express | 2.1% of loans | Express tops out at $500,000 |
Why growers pay less than the national median
The median rate of 8.25% sits two full points below the national 10.25%, and the middle half of broiler loans, 7.8% to 8.75%, sits entirely below it. That is mostly arithmetic, not a view of chickens. SBA caps variable 7(a) rates at the base rate plus 3% on loans above $350,000, against plus 6% from $50,001 to $250,000 and plus 6.5% at $50,000 or less. Even the lower quartile of broiler loans, $690,000, is well into the top band, so at least three loans in four sit under the tightest cap and lenders have far less room to price them up than a small loan. See SBA maximum interest rates and the current SBA loan rates.
The fixed-rate share, 61.8%, is the other outlier: most SBA borrowers float. A grower whose income is set per pound under a contract has no way to pass on a rising rate, and a long real estate loan gives the lender a reason to offer a fixed option. The median term of 216 months reflects SBA's maturities: up to 25 years for real estate, up to 10 years for equipment (15 if its useful life supports it). A loan that finances land, houses and equipment together gets a blended maturity weighted by each part. See SBA blended maturity and fixed vs variable rate.
The integrator contract is the credit
Most broiler growers raise birds under contract. The integrator supplies the chicks, feed and veterinary support and runs the processing plant; the grower supplies the land, houses, labor and utilities and is paid for the weight produced, usually adjusted by how the flock performed against other growers supplying the same plant. The grower has, in effect, one customer. A lender reads the grower agreement the way a commercial real estate lender reads a single-tenant lease.
| What the lender checks | Why it matters |
|---|---|
| Contract term against loan term | A flock-to-flock or short contract under an 18-year loan leaves the lender relying on history and on the integrator's need for the houses |
| Settlement history | Several years of settlement sheets show pay per pound, ranking against other growers and how many flocks a year were placed |
| Termination and cure clauses | What lets the integrator stop placing birds, and how long the grower has to fix a problem |
| Required house upgrades | Integrators can require new ventilation, lighting or equipment; the cost of the next round comes out of the same cash flow |
| The plant and the region | Houses are worth what an integrator within hauling distance will place birds in; a plant closing nearby changes the collateral |
| Utilities and litter | Propane, electricity and litter handling are the grower's costs and move with weather and prices |
A grower's debt service coverage is only as good as the integrator's willingness to keep placing birds in those houses.
SBA requires debt service coverage of at least 1.15x, and 1.0x globally once the owners' personal income and debts are counted; many farm families have other income and other debt, so the global test matters here. Specialist lenders also stress the file for a lost flock or two, because disease, a ventilation failure in a heat wave or a storm can leave houses empty for weeks while the mortgage payment does not stop. See global cash flow and debt service coverage.
Collateral with one kind of buyer
Unlike a restaurant or a design studio, a broiler farm has hard collateral: land, buildings and equipment, usually enough to cover much of the loan. The catch is that poultry houses are special-purpose buildings. Their value depends on an integrator still operating in reach, and an appraiser will say so. The lender takes a first lien on the farm and, because every owner of 20% or more personally guarantees an SBA loan, often on the family home too, which on many farms sits on the same parcel. See the personal residence as SBA collateral and collateral coverage.
Environmental review comes with real estate collateral, and on a poultry farm lenders also ask about litter storage and the nutrient-management plan as well as the usual site history. Insurance, backup generators and alarm systems are underwriting items, because a power failure in a full house can destroy a flock in hours.
New farms and farm purchases
Start-ups were 40.3% of broiler loans, a share few industries come close to. Some are new houses on land the family already owns; others are first-time growers buying or building a farm. SBA requires an equity injection of at least 10% of total project costs for a start-up, and a lender will want to see the integrator's written commitment to place birds before it funds construction. Experience counts: a buyer who has managed houses for another grower reads very differently from one new to livestock. See buyer experience requirements.
Acquisitions were 53 loans, 22.7% of the total, more than twice the national 10.4%, at a median of $1,240,000 and 8.15%. A farm purchase is mostly real estate and equipment, which changes how SBA's rules land:
- SBA requires an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000. On a farm, the appraisal of land and houses carries most of the price, so what is left can be small. See the SBA valuation requirement.
- The integrator must accept the new grower. A purchase agreement that closes before the integrator has agreed to place birds with the buyer leaves the lender financing empty buildings.
- At least 10% of total project costs as equity. A seller note counts toward half of it only if it is on full standby, no principal or interest, for the life of the SBA loan. See seller notes and SBA standby.
- The seller may not stay on as an owner, officer or employee but may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026.
- From 1 October 2026 a change of ownership must show 1.25x debt service coverage on historical results, financial due diligence is required on every one, and change-of-ownership loans amortize over no more than 10 years except the real estate share. On a farm, that shortens the equipment portion and raises the payment.
More on purchases that include land is in business acquisition with real estate.
Why no 504, and almost no Express
The SBA records no 504 loans to broiler producers in the period. A 504 loan is built for owner-occupied commercial real estate and long-life equipment, with a bank, a CDC and the borrower sharing the project; a 7(a) can carry land, houses, equipment and working capital in one loan with a blended maturity, which suits a farm. SBA Express was 2.1% of loans: at a ceiling of $500,000 and a 50% guaranty, it is too small for a house and too thin a guaranty for a lender on a farm. See SBA 7(a) vs USDA Business and Industry and SBA 7(a) vs 504.
Preparing a grower's file
The SBA list: 2–3 years of business tax returns (on many farms, the farm schedule of the owner's personal return), 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 what is specific to poultry: the grower agreement with every amendment, settlement sheets for recent flocks, a list of houses with their age, size and equipment, the integrator's upgrade requirements, utility bills, insurance, environmental and nutrient-management documents, and any appraisal of the farm. For a purchase, the seller's settlement history and the integrator's acceptance of the buyer. 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 finds the few lenders among the 278 in its book that write SBA 7(a) and 504 who also lend to growers. On SBA loans the lender pays Transparent, not the borrower. See the package.
Common questions
- Can I get an SBA loan to build new poultry houses?
- Yes. Start-ups and new construction were 40.3% of broiler loans from October 2023 to June 2026. Expect to put in at least 10% of total project costs and to show the integrator's written commitment to place birds.
- Why are SBA rates lower for chicken farms than for most businesses?
- Mostly because of loan size. SBA caps variable rates at the base rate plus 3% above $350,000, and the median broiler loan was $1,334,000. The median rate was 8.25%, against 10.25% nationally.
- How long can an SBA loan on a poultry farm run?
- The median term was 216 months. Real estate can run up to 25 years and equipment up to 10 (15 if its useful life supports it); a loan covering both gets a blended maturity. From 1 October 2026, a change-of-ownership loan amortizes over no more than 10 years except the real estate share.
- What if my integrator contract is short?
- Many are. The lender then leans on your settlement history, the integrator's need for houses in your area and the condition of your houses. A long record of placements and good rankings is the best substitute for a long contract.