From October 2023 to June 2026, 50 lenders approved 105 SBA 7(a) loans to dance companies, worth $22,762,000. The median loan was $100,000, below the national $150,300, at a median rate of 10.5% against 10.25% nationally. Start-ups were 14.3% of loans; acquisitions were 6.7%, at a median of $148,500. Another 15 loans went through SBA 504 at a median of $758,000, the scale of a studio building. Only for-profit companies qualify, and lenders underwrite the mix of performance fees and tuition, how seasonal it is, and the lease or building the company works from.
| Measure | Dance Companies | All industries |
|---|---|---|
| SBA 7(a) loans approved | 105 | 162,355 |
| Median loan | $100,000 | $150,300 |
| Middle half of loans | $50,000 – $195,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 2.9% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.36% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 7 (6.7%) | 16,849 (10.4%) |
| Median acquisition loan | $148,500 | $693,000 |
| Lenders that made these loans | 50 | 1,648 |
| SBA 504 loans (real estate, equipment) | 15 | 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
- 105 from 50 lenders (Oct 2023 – Jun 2026)
- Median loan
- $100,000 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- Start-ups
- 14.3% of loans
- Acquisitions
- 7 loans (6.7%), median $148,500
- SBA 504
- 15 loans, median $758,000
Small loans from an unusually wide set of lenders
Dance companies (NAICS 711120) produce live dance: repertory and contemporary companies, commercial troupes that perform at corporate events, weddings and theme venues, touring productions, and competition companies built around a studio's performing teams. Fifty lenders made 105 loans, about two each on average, so the lender a dance company approaches is likely to see one only occasionally, not as a specialty.
| Figure | Dance companies | Reading |
|---|---|---|
| Median loan | $100,000 | Two-thirds of the national $150,300 |
| Middle half of loans | $50,000 to $195,000 | Equipment, buildouts, working capital |
| 90th percentile | $500,000 | Equal to the SBA Express ceiling |
| Loans of $1 million or more | 3 (2.9%) | Rare in this industry |
| Median rate | 10.5% (middle half 9.36% to 11.5%) | National median 10.25% |
| Fixed-rate share | 18.1% | Most loans float |
| Start-ups / franchises | 14.3% / 4.8% | New companies and studio concepts get funded |
| SBA Express | 32.4% of loans | |
| Acquisitions | 7 (6.7%), median $148,500 at 10.5% | National share 10.4% |
| SBA 504 | 15 loans, median $758,000 | Several times the typical 7(a) loan |
Small loans carry SBA's widest rate caps: up to the base rate plus 6.5% for loans of $50,000 or less and plus 6% from $50,001 to $250,000. The middle half of dance-company loans sits almost entirely in that range, which is why a borrower should compare the spread quoted with those caps, and with what other lenders offer, before accepting a rate. See SBA maximum rates and SBA loan rates.
For-profit companies only
Many of the country's best-known dance companies are nonprofits funded by tickets, grants and donations. They cannot borrow under 7(a), which lends only to for-profit businesses. The companies in these figures earn their revenue commercially: fees for performances and events, ticket sales on their own productions, and very often tuition, because a company and a school frequently share a studio, a staff and an owner. Where both exist in one business, the lender underwrites the combined cash flow; where they sit in separate entities, the lender will look at both, and may require both to guarantee. See SBA affiliation rules and SBA loans for fine arts schools.
Where the money comes from, and how lenders weigh it
| Revenue stream | Pattern | How a lender weighs it |
|---|---|---|
| Class tuition and memberships | Monthly, following the school year | The most dependable income; underwritten on enrollment and retention |
| Performance and event fees | Booked in advance, uneven by month | Counted when repeat clients and a booking calendar show it recurs |
| Ticket sales for own productions | Concentrated around a few shows a year | Discounted: one weak production can wipe out the season's margin |
| Competition team fees | Front-loaded in the season | Counted net of entry fees, travel and choreography paid out |
| Costume and recital fees | Collected ahead, paid to suppliers | Largely pass-through; removed from both revenue and cost |
| Summer intensives and camps | Short, concentrated | Helps the weakest months; counted if it has run for several years |
The pass-through lines matter more than they seem. Costume, competition and travel money flows through the company's bank account in large amounts, inflating revenue without adding margin. A P&L that nets them out, or shows them on their own lines, makes the business easier to underwrite and stops the lender doing the restatement less generously.
The shape of the dance year
Dance cash flow follows two calendars. Studio income rises with fall enrollment and peaks into the spring recital, then drops in summer. Performance income clusters around the holiday season and event season, and a company that tours depends on a handful of engagements. Rent and core salaries do not follow either calendar.
Lenders look at monthly figures, not just annual ones, to see whether the company can meet its payment in the weakest months without borrowing. They weigh a history of prepaid tuition and deposits for bookings favorably, because both move cash ahead of the quiet months. SBA's coverage test is applied to the year, at least 1.15x, and 1.0x globally once the owners' personal obligations are counted; but a company that passes on the year and runs out of cash in July will struggle to convince an underwriter. A modest working capital line alongside the term loan is often the answer. See seasonal lines of credit and global cash flow.
Show the lender twelve months of cash, not one year of profit: the question in this industry is the summer.
A place to rehearse: the lease and the 504 loans
A dance space needs sprung floors, mirrors, sound and high ceilings. Those improvements are expensive to install and worth almost nothing if the company leaves, so lenders treat a leased studio's buildout as cost, not collateral. They will want a lease that runs at least as long as the loan, including renewal options, and a landlord who will not disrupt the business.
That explains the 15 SBA 504 loans at a median of $758,000. For a company that has outgrown rented space, owning the building fixes the occupancy cost and turns the buildout into an improvement on its own property. A 504 borrower must occupy at least 51% of an existing building, or 60% of new construction, and typically contributes 10%, or 15% for a new business or special-purpose property, with the bank and the CDC providing 50% and 40%. Under 7(a), real estate can be financed over up to 25 years. See SBA 7(a) vs 504.
Because most dance companies have little hard collateral, SBA lenders take what is available and commonly look to personal real estate where the business assets fall short. Every owner of 20% or more personally guarantees the loan. See personal residence collateral.
Starting or buying a company
Start-ups took 14.3% of loans. A new company or studio must inject at least 10% of total project costs, and the lender will rely on the founder's teaching and management record, documented on SBA Form 1919 and a resume, plus projections built from enrollment the founder can credibly bring. See SBA Form 1919.
Acquisitions were 7 loans at a median of $148,500. The risk is the same one every artistic business carries: students and clients may have come for the founder. 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, so the teaching staff and choreographers who stay matter more than the seller's goodwill. SBA prohibits an earnout to the seller. At this size, many purchases fall under the $250,000 line above which SBA requires an independent business valuation, although the lender still has to support the price. From 1 October 2026 every change of ownership requires financial due diligence and 1.25x coverage on historical results.
Preparing a dance company's file
- Business tax returns for 2–3 years, a P&L, balance sheet and year-to-date P&L
- Personal tax returns and a personal financial statement for each owner of 20% or more
- A debt schedule, including any equipment or cash-advance balances
- Monthly revenue by stream for at least two years, with pass-through fees shown separately
- Enrollment and retention by term, and the booking calendar for performances
- The studio lease with renewal options, or the purchase contract
- The owner's resume, supporting SBA Form 1919
Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, with the monthly cash picture laid out so a lender sees the quiet months and how they are covered. Transparent's book holds 278 lenders that write SBA 7(a) and 504, and on SBA loans the lender pays Transparent, not the borrower.
Common questions
- Can a nonprofit dance company get an SBA 7(a) loan?
- No. SBA 7(a) lends only to for-profit businesses. A for-profit company or studio that performs and teaches is eligible.
- How big are SBA loans to dance companies?
- Small: a median of $100,000 from October 2023 to June 2026, against $150,300 nationally, with the middle half between $50,000 and $195,000.
- Can I buy a studio building with an SBA loan?
- Yes. Dance companies took 15 SBA 504 loans in the period, at a median of $758,000. The company must occupy at least 51% of an existing building, and 7(a) can also finance real estate over up to 25 years.
- Do lenders count costume and competition fees as revenue?
- Mostly not. Money collected from families and paid on to costume suppliers, competitions and travel is pass-through, and lenders remove it from both revenue and cost.
- Will a lender finance a brand-new dance company?
- Some do: start-ups were 14.3% of loans. Expect to inject at least 10% of project costs and to show a teaching and management record that supports the enrollment you project.