SBA lenders approved 157 7(a) loans to coffee and tea manufacturers from October 2023 to June 2026, $49,928,300 from 73 lenders. The median loan was $150,000, almost exactly the national $150,300, at a median rate of 10.5%, above the national 10.25%. SBA Express carried 40.1% of loans. Acquisitions were rare, 4 loans or 2.5%. Lenders decide on the mix of wholesale, retail and online sales, how green coffee or tea costs pass through to price, the roasting equipment and its permits, and how much of the business depends on the founder.
| Measure | Coffee and Tea Manufacturing | All industries |
|---|---|---|
| SBA 7(a) loans approved | 157 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $250,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 8.3% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 12% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 4 (2.5%) | 16,849 (10.4%) |
| Median acquisition loan | $346,000 | $693,000 |
| Lenders that made these loans | 73 | 1,648 |
| SBA 504 loans (real estate, equipment) | 12 | 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
- 157 (Oct 2023 – Jun 2026), from 73 lenders
- Median loan / rate
- $150,000 at 10.5%
- SBA Express share
- 40.1% of loans
- Loans of $1 million or more
- 13 (8.3%)
- Acquisitions
- 4 loans (2.5%), median $346,000 at 9.88%
- SBA 504
- 12 loans, median $587,000
What SBA lenders approved
Coffee and tea manufacturers (NAICS 311920) — roasters, tea blenders and packers, and makers of coffee concentrates and extracts — took 157 SBA 7(a) loans worth $49,928,300 from 73 lenders between October 2023 and June 2026. The median of $150,000 is on the national figure. The middle half ran from $50,000 to $250,000, the 90th percentile was $654,500, and 13 loans (8.3%) were $1 million or more.
| Figure | Coffee and tea manufacturing | National |
|---|---|---|
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 to $250,000 | — |
| 90th percentile | $654,500 | — |
| Median rate at approval | 10.5% (middle half 9.5% to 12%) | 10.25% |
| Fixed-rate share | 17.8% | — |
| SBA Express | 40.1% of loans | — |
| Start-ups | 14% of loans | — |
| Acquisitions | 4 loans (2.5%), median $346,000 at 9.88% | 10.4% of loans |
| SBA 504 | 12 loans, median $587,000 | — |
| Median jobs supported | 6 | — |
Two numbers set this industry apart. SBA Express, at 40.1% of loans, is a large share: many roasters borrow for a single roaster, a packaging machine or green-coffee inventory, amounts that fit under Express's $500,000 limit. And the rate sits above the national median, with an upper quartile at 12%, which follows from how many loans are small. SBA caps variable rates at the base rate plus 6% between $50,001 and $250,000, against plus 3% above $350,000, so a small loan is allowed a wider spread. See SBA loan rates.
Where the revenue comes from
Two roasters with identical sales can be very different credits. What a lender wants first is revenue by channel, because each carries its own margin, customers and failure mode.
| Channel | What the lender weighs |
|---|---|
| Wholesale to cafés and restaurants | Many small accounts, equipment often placed on loan at the café, and closures that show up as bad debt |
| Grocery and specialty retail | Slotting, promotional spend and chargebacks that reduce net sales; buyer turnover at the chain |
| Private label and co-packing | Volume without a brand; the customer can move the contract, so its term and notice period matter |
| Direct to consumer and subscriptions | Good margin and repeat revenue, but advertising cost to acquire each customer and platform dependence |
| Own cafés | Retail risk and leases layered on the roaster; lenders often underwrite them separately |
| Office and food-service contracts | Steady volume, contract renewal risk, and equipment service obligations |
A file that shows gross margin by channel, and the top customers' share of sales, answers most of the lender's first questions. Where one grocery chain or co-packing client is a large share of sales, see customer concentration and debt. Online sellers can compare their options in lines of credit for e-commerce brands.
Green coffee, tea and the cost line
Green coffee and bulk tea are traded commodities, and their prices can move sharply within a year. A roaster that buys forward or holds several months of green coffee protects its cost but ties up cash; one that buys spot keeps cash but takes the swings. Neither is wrong. What a lender wants to see is the policy, the inventory it produces, and how quickly the roaster passed earlier cost increases through to wholesale and retail prices.
Coverage is tested on a normal year's margin, not a year of unusually cheap beans. SBA requires at least 1.15x, or earnings of 1,150 against payments of 1,000, and 1.0x globally including the owners. Where green-coffee inventory rises and falls with the harvest calendar, a small revolving line against inventory and receivables may carry it more cheaply than the term loan; see inventory advance rates and lines of credit for manufacturers.
Roasters, afterburners and the plant
The equipment is the most financeable asset a roaster owns. A drum roaster from a recognized maker resells, as do grinders and packaging and nitrogen-flush lines. Larger roasters often need emissions control, such as an afterburner, and roasting plants typically operate under local air-quality and food-safety permits; a lender will want them current and transferable if the business moves or changes hands. Equipment loans under 7(a) run up to 10 years, or 15 if the equipment's useful life supports it. See equipment financing vs SBA 7(a).
The 12 SBA 504 loans, at a median of $587,000, are mostly roasters buying their building or long-life plant equipment. A 504 project is typically 50% from a bank, 40% from the CDC and 10% from the borrower, and the business must occupy at least 51% of an existing building. A tasting room or café run by the same business in that building counts as the borrower's own use. See SBA 7(a) vs 504.
Why so few roasters change hands with SBA money
Only 4 loans, 2.5% against the national 10.4%, financed an acquisition, at a median of $346,000 and 9.88%. Part of the reason is that a roaster's value often sits with its founder: the roast profiles, the green-coffee sourcing relationships, and the wholesale accounts who buy from a person they know. A lender financing a purchase has to believe those stay with the business.
- The seller cannot remain as an owner, officer or employee after a complete change of ownership, but may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026.
- Roast profiles, recipes, brand names and trademarks should be listed as assets in the purchase agreement.
- 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.
- At least 10% of total project costs as equity; a seller note counts for up to half only on full standby for the life of the SBA loan. SBA prohibits an earnout.
- From 1 October 2026, financial due diligence on every change of ownership and 1.25x coverage on historical results.
See buyer industry experience and financing a coffee shop acquisition for the retail side of the trade.
Preparing a roaster'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. For a roaster, add sales and gross margin by channel, the top customers and their share, the green-coffee or tea purchasing record with any forward contracts, an equipment list with quotes for what the loan buys, and the plant's permits. A start-up, 14% of the industry's loans, adds a business plan and a resume that shows roasting or food-production experience.
Transparent builds the 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 278 lenders in its book that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower.
Common questions
- How large are SBA loans to coffee roasters?
- The median from October 2023 to June 2026 was $150,000, in line with the national median. The middle half ran from $50,000 to $250,000.
- Can I finance roasting equipment with SBA Express?
- Yes. Express goes up to $500,000 with a 50% guaranty, and 40.1% of the industry's loans used it. Larger roasters, plants and acquisitions usually go through a standard 7(a) or SBA 504.
- Do lenders care about green coffee prices?
- Yes. They look at how the business buys, how much inventory it carries and how it passed earlier cost rises through to price, and test coverage on a normal year's margin.
- Why are coffee roaster acquisitions rare in SBA data?
- Only 4 loans financed one in the period. Much of a roaster's value sits with the founder's sourcing and customer relationships, which a buyer and lender must be confident will transfer.