SBA lenders approved 298 7(a) loans to electronics and appliance retailers (NAICS 449210) from October 2023 to June 2026, $123,163,700 from 91 lenders. The median loan was $150,000, level with the national $150,300, at a median rate of 10.5% against 10.25% nationally, and 40.3% were SBA Express loans. Acquisitions were only 7% of loans, below the national 10.4%. Lenders look at floor plan and supplier liens on inventory, how much profit comes from delivery, installation and service rather than product, obsolescence, and any cash advances used to carry the store.
| Measure | Electronics and Appliance Retailers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 298 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $60,750 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 11.1% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.49% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 21 (7%) | 16,849 (10.4%) |
| Median acquisition loan | $737,500 | $693,000 |
| Lenders that made these loans | 91 | 1,648 |
| SBA 504 loans (real estate, equipment) | 32 | 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
- 298 (Oct 2023 – Jun 2026), from 91 lenders
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- SBA Express share
- 40.3% of loans
- Acquisitions
- 21 loans (7%), median $737,500 at 9%
- SBA 504 loans
- 32, median $830,000
A median-sized loan in a thin-margin trade
On size, electronics and appliance stores look like the average SBA borrower: a median of $150,000 against $150,300 nationally. The middle half ran from $60,750 to $500,000, and the top of that range is exactly the SBA Express ceiling. Only 33 loans (11.1%) reached $1 million, and the 90th percentile was $1,109,980.
| Figure | Electronics and appliance | National | Reading |
|---|---|---|---|
| Median loan | $150,000 | $150,300 | Level with the typical SBA loan |
| Median rate | 10.5% | 10.25% | A quarter point above; middle half 9.5% to 11.49% |
| Acquisition share | 7% | 10.4% | Fewer purchases than the national mix |
| Acquisition median | $737,500 at 9% | — | Purchases are larger loans at lower rates |
| SBA Express share | 40.3% | — | Four loans in ten decided on the lender's own process |
| Fixed-rate share | 12.1% | — | Most loans float |
| Start-ups | 7% | — | New stores are a small minority |
The rate reflects the mix. SBA Express loans carry a 50% guaranty, and small loans fall under SBA's wider variable-rate caps: the base rate plus 6% from $50,001 to $250,000, against plus 3% above $350,000. A small loan for inventory or a showroom refresh leaves the lender more room to price it higher. See SBA loan rates and SBA 7(a) vs SBA Express.
Who holds the lien on the inventory
Many appliance and electronics dealers do not own their showroom stock outright. They buy it on a floor plan: a finance company, often one allied with the manufacturer or distributor, pays for the units and the dealer repays as each one sells. The floor plan lender files a lien on what it finances, usually with purchase-money priority, and that stock is its collateral before it is anyone else's. See purchase-money security interest.
- The SBA lender's position. An SBA lender taking a blanket lien on the business will usually sit behind the floor plan lender on floor-planned inventory. The two sign an intercreditor agreement that says who is paid from what.
- Curtailments. Floor plans typically require the dealer to pay down units that have not sold after a set period. A store carrying aged stock pays for it in cash every month, and lenders read curtailment payments as a sign of what is not selling.
- Supplier credit. Distributors that sell on terms may also file liens. A UCC search before the application shows what is there; surprises found by the lender slow everything. See blanket liens and new financing.
- Obsolescence. Televisions, audio and computer products lose value on a model-year cycle. Lenders give last year's electronics little collateral value and appliances somewhat more, and they ask for an inventory report aged by model.
Where the margin actually is
An independent store competes on product price with national chains and online sellers that buy in far larger volume. Independents that last tend to do it by selling what those channels do badly: delivery, installation, repair and advice. A lender wants to see that in the numbers, because it decides whether earnings will hold.
| Revenue line | How it behaves | How a lender reads it |
|---|---|---|
| Product sales | High volume, thin margin, price-matched | Necessary, but not where the store earns its keep |
| Delivery, installation and haul-away | Service fees attached to most large-appliance sales | Durable margin that online sellers struggle to match |
| Repair and parts | Recurring, often under manufacturer warranty programs | Steady; watch reimbursement terms from manufacturers |
| Extended service plans | Sold with the product, performed later | If the store carries the risk, the unearned part is a liability; if a third party does, it is commission income |
| Custom installation and home technology | Project work with deposits | Higher margin; deposits held are owed back if the job is not done |
| Builder and multifamily packages | Contract sales to developers | Concentration in a few builders, and slower payment |
Consumer financing is the other thread. Stores that offer customers credit through a third-party program are paid by the finance company, less a discount, and never hold the receivable. That is good for cash flow but leaves the store without receivables to borrow against, which is part of why a term loan, not a receivables line, usually fits this trade.
Why so few buyers, and what a purchase looks like
Only 21 loans financed a change of ownership. A store whose customers come for the owner's advice and service is hard to transfer, and a buyer looking at thin product margins needs to believe the service business will survive the owner's departure. In a complete change of ownership the seller may consult for up to 12 months (up to 24 months under SOP 50 10 8.1 from 1 October 2026) but may not stay as an owner, officer or employee.
The purchases that happen are substantial: a median of $737,500 at 9%. SBA requires an equity injection of at least 10% of total project costs, an independent business valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000, and from 1 October 2026 financial due diligence on every change of ownership and debt service coverage of 1.25x on historical results. Floor plan agreements and brand dealer agreements usually need the supplier's consent to transfer; see change-of-control consents and how SBA 7(a) finances an acquisition.
Cash advances, showrooms and the 504 route
Thin margins and inventory that must be paid for before it sells push some stores toward merchant cash advances. SBA will not refinance an active advance. From 1 October 2026 an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. A store carrying advances should read refinancing cash advances for retailers before it applies.
At the other end, the trade had 32 SBA 504 loans with a median of $830,000; 504 finances owner-occupied real estate, such as a showroom or warehouse, and long-life equipment. A store that occupies at least 51% of an existing building can finance it through 504, typically 50% from a bank, 40% from the CDC and 10% from the borrower. See SBA 7(a) vs 504.
Preparing the file
SBA's list: business tax returns for 2–3 years, 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. A purchase adds the store's latest full year of figures and the letter of intent.
For this trade, add floor plan statements with curtailment history, an inventory report aged by model, dealer agreements, gross margin by revenue line, a schedule of any extended service plans the store carries, customer deposits held, and a list of builder or commercial accounts with balances owed. Transparent assembles that into a lender package that shows the service margin plainly, and sends it to lenders in its book that write SBA 7(a) and 504. See the package.
Common questions
- What is a typical SBA loan for an electronics or appliance store?
- The median 7(a) loan in NAICS 449210 from October 2023 to June 2026 was $150,000, with the middle half between $60,750 and $500,000. Purchases of existing stores were larger, with a median of $737,500.
- Can I get an SBA loan if my inventory is on a floor plan?
- Usually, yes. The floor plan lender keeps its lien on the units it finances, and the SBA lender takes its position behind it on that stock under an intercreditor agreement. Lenders will want the floor plan statements.
- Do extended warranties I sell count as income?
- It depends on who carries the risk. Commission from a third-party plan is income. If the store carries the obligation itself, the unearned part of what it collected is a liability.
- Why do lenders care about delivery and installation revenue?
- Because product margins are thin and price-matched. Service revenue is where an independent store earns money that larger and online sellers struggle to take away, so it is the best evidence that earnings will hold.