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SBA lending data

SBA loans for commercial screen printing: a trade where shops are bought more often than started

Nearly one in five SBA loans to screen printers finances the purchase of an existing shop, more than three times the start-up share. A buyer is paying for presses and a customer list; a lender wants to know how much of that list will still order after the founder leaves.
Written by the Transparent underwriting desk · Updated
Quick answer

SBA lenders approved 266 7(a) loans to commercial screen printers from October 2023 through June 2026, $105,259,100 from 91 lenders. The median loan was $150,000, level with the national $150,300, at a median rate of 10% against 10.25%. Acquisitions were 19.2% of loans, nearly twice the national 10.4%, at a median of $390,000, while start-ups were only 5.6%. Lenders decide these loans on the customer mix and its seasons, the age and value of the presses and embroidery machines, and, in a purchase, whether the accounts follow the new owner.

Commercial Screen Printing: what SBA lenders approvedSBA loan records
MeasureCommercial Screen PrintingAll industries
SBA 7(a) loans approved266162,355
Median loan$150,000$150,300
Middle half of loans$50,000 – $381,125$50,000 – $500,000
Loans of $1 million or more10.2%12.9%
Median rate at approval10%10.25%
Middle half of rates9% – 11.25%9.3% – 11.25%
Acquisitions (change of ownership)51 (19.2%)16,849 (10.4%)
Median acquisition loan$390,000$693,000
Lenders that made these loans911,648
SBA 504 loans (real estate, equipment)1516,714

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
266 (Oct 2023 – Jun 2026), from 91 lenders
Median loan
$150,000 (national $150,300)
Median rate at approval
10% (national 10.25%)
Acquisitions
51 loans (19.2%), median $390,000 at 9.5%
Start-ups / SBA Express
5.6% / 39.8% of loans
SBA 504
15 loans, median $561,000

What the approvals show

Commercial screen printing (NAICS 323113) is mostly garment decoration: shirts, hoodies, hats and uniforms printed by screen, and in most shops now also by direct-to-garment and direct-to-film printers, with embroidery alongside. The code also covers screen-printed decals, posters, banners and promotional items. The median loan supported 5 jobs.

SBA 7(a) approvals to NAICS 323113, 1 Oct 2023 – 30 Jun 2026, cancelled loans excluded.
FigureScreen printingAgainst the national figures
Loans / total / lenders266 / $105,259,100 / 91A wide lender market for a small trade
Median loan$150,000Level with the national $150,300
Middle half of loans$50,000 to $381,125Equipment at the low end, shop purchases at the high end
90th percentile$985,500Just short of $1 million
Loans of $1 million or more27 (10.2%)A real top end for a small-shop trade
Median rate (middle half)10% (9% to 11.25%)Below the national 10.25%
Fixed-rate share19.9%About one loan in five fixed
Median term120 monthsTen years
SBA Express39.8%Small equipment and working-capital loans
Start-ups / franchises5.6% / 5.3%Few new shops financed with SBA
Acquisitions51 (19.2%), median $390,000 at 9.5%Nearly twice the national 10.4% share

The median loan sits right on the $150,000 line, the top of SBA's 85% guaranty tier; above it the guaranty drops to 75%. The start-up share is low for a trade with a modest entry cost, because many small printers start in a garage with a manual press and grow on cash and equipment financing. By the time they come to an SBA lender, they have returns to show, or they are buying someone else's shop.

Customers, and the seasons they bring

A screen printer's risk is in its order book. Five kinds of customers make up most shops, and each pays, orders and concentrates differently.

Where a screen printer's revenue comes from, and what each source asks of the lender.
CustomerOrder patternWhat the lender watches
Schools, teams and leaguesHeavy in spring sports, back-to-school and autumn seasonsSeasonal troughs; payment by booster clubs and districts
Businesses buying uniforms and branded apparelRepeat reorders through the yearThe most stable revenue; how many accounts, how long retained
Promotional products distributorsVolume orders on the distributor's paper, for its clientsConcentration in one or two distributors, and their payment terms
Apparel brands and online sellersContract printing at scale, sometimes fulfillmentA few large accounts; the brand can move production quickly
Events, bands and walk-in ordersSmall, prepaid, unpredictableUseful cash, little a lender can count on

Most shops buy blank garments to order, so inventory is lighter than in retail, but a busy season means buying blanks and paying overtime weeks before the customer pays. A shop that runs on deposits for small orders and net terms for distributors and brands can swing from cash-rich to tight within a month. Lenders read twelve months of revenue by month to see the pattern. A shop whose receivables sit with a few distributors should also read customer concentration and seasonal lines of credit.

Buying a screen printing shop

Fifty-one loans financed a change of ownership at a median of $390,000 and a median rate of 9.5%. Many shops were built over decades by owners now reaching retirement, and buyers range from employees and competitors to first-time owners with a sales background. The sales background matters: in many shops the founder is the salesperson, and the accounts are loyal to the person who answers the phone.

SBA requires an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan cannot exceed the valuation. In a shop with a lot of machinery, an equipment appraisal changes that arithmetic, so it is worth commissioning early. The buyer injects at least 10% of total project costs; a seller note can count for up to half of that only on full standby for the life of the loan, and SBA prohibits an earnout to the seller. The seller cannot 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, which is the window for introducing the buyer to every account that matters.

From 1 October 2026 the purchase must also show 1.25x debt service coverage on historical results, and financial due diligence is required on every change of ownership. Shops that run personal expenses through the business will need their addbacks documented, not asserted. See financing a printing company acquisition and buying from a retiring owner.

Before the letter of intent, find out who actually sells: if every large account calls the founder, the transition plan is the deal.

Presses, embroidery heads and digital printers

Automatic screen presses, conveyor dryers, exposure units, multi-head embroidery machines and digital garment printers make up most of a shop's hard assets. Automatic presses and embroidery machines have a well-established used market and hold value reasonably; digital printers age faster as the technology changes. Lenders value all of it at what it would bring in liquidation, well below cost, so equipment alone rarely secures a purchase loan. See net orderly liquidation value.

For a shop adding one press or a digital printer, a dedicated equipment loan or lease is often the simpler route; see equipment lease vs equipment loan. A 7(a) makes more sense when equipment comes with working capital, a move or a refinancing. Fifteen SBA 504 loans went to screen printers, at a median of $561,000, for buildings with loading docks and room for dryers and blank stock; the business must occupy at least 51% of an existing building. See SBA 7(a) vs 504.

Preparing a print shop's file

Start from the SBA list: business tax returns for 2–3 years, a P&L and balance sheet, a year-to-date P&L through last month-end, a debt schedule with copies of any notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For a screen printer, add:

  • Monthly revenue for the last two years, so the seasons are visible
  • Revenue by customer type and the largest accounts named, with how long each has ordered
  • A receivables aging by customer
  • An equipment list with make, model, year, heads or colors, and any liens
  • For a purchase: the letter of intent, the target's latest full year of figures, and who handles each major account

SBA requires debt service coverage of at least 1.15x, and 1.0x globally including the owners. Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and matches the file against 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 much do screen printers borrow with SBA loans?
The median 7(a) loan from October 2023 through June 2026 was $150,000, with the middle half between $50,000 and $381,125. Twenty-seven loans were $1 million or more.
Can I buy a screen printing business with an SBA loan?
Yes, and it is common: 19.2% of SBA loans in this industry financed a change of ownership, at a median of $390,000 and a median rate of 9.5%. Expect to inject at least 10% of total project costs and, on many deals, to need an independent business valuation.
Will my presses secure the loan?
Partly. Lenders value equipment at liquidation value, well below what you paid, and digital printers lose value faster than automatic presses and embroidery machines. SBA does not decline a loan only because collateral falls short, but the lender will take what is available, which can include a lien on an owner's home, and every owner of 20% or more personally guarantees the loan.
How do lenders treat a seasonal print shop?
They look at the full year and at whether the business can pay its debt through the slow months. Show two years of revenue by month and how you fund blanks and payroll before the busy season.
Does it matter that the seller does all the selling?
Yes, a great deal. If the accounts are loyal to the founder, the lender will ask how they will be handed over. SBA lets the seller consult for up to 12 months, or up to 24 months from 1 October 2026, but not stay on as an employee.
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