From 1 October 2023 to 30 June 2026, 222 SBA lenders approved 5,663 7(a) loans in Illinois worth $2,833,750,500. The median loan was $160,000, a little above the national $150,300, and the median rate was 10.25%, the same as nationally. Acquisitions were 11.5% of loans, above the national 10.4%, at a median of $650,000. Illinois borrowers also took 714 SBA 504 loans. Trucking accounts for two of the state's five largest industries. SBA fits Illinois deals that need low equity, long terms or goodwill financing; conventional and asset-based lenders fit companies whose collateral and earnings already carry the debt.
| Measure | Illinois | All industries |
|---|---|---|
| SBA 7(a) loans approved | 5,663 | 162,355 |
| Median loan | $160,000 | $150,300 |
| Middle half of loans | $60,000 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 13.1% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.25% – 11% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 654 (11.5%) | 16,849 (10.4%) |
| Median acquisition loan | $650,000 | $693,000 |
| Lenders that made these loans | 222 | 1,648 |
| SBA 504 loans (real estate, equipment) | 714 | 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.
- 7(a) loans approved
- 5,663 from 222 lenders (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $160,000 (national $150,300)
- Median rate at approval
- 10.25%, middle half 9.25% to 11%
- Acquisition loans
- 654 (11.5%), median $650,000 at 9.5%
- Loans of $1 million or more
- 744 (13.1%)
- SBA 504 loans
- 714, median $617,500
Close to the national shape, with more buyers
On price, Illinois is the national market: a median rate of 10.25%, with the middle half of loans between 9.25% and 11%. On size it runs a little larger, with a median of $160,000 and a middle half from $60,000 to $500,000. Its tail is substantial: 744 loans, 13.1% of the total, were for $1 million or more, and one loan in ten was above $1,325,600.
Two things set it apart. The first is acquisitions: 654 loans, 11.5% of the total, financed a change of ownership, a larger share than the national 10.4%. The second is the breadth of the lender field. Illinois had 222 lenders for 5,663 loans, a wide field for the volume, which means a borrower has real choice and a file can reach a lender whose box fits it, if it is sent to the right one.
| Measure | Illinois | National | Reading |
|---|---|---|---|
| Median 7(a) loan | $160,000 | $150,300 | Just over the $150,000 line where SBA's guaranty drops from 85% to 75% |
| Median rate at approval | 10.25% | 10.25% | Priced like the country |
| Acquisition share | 11.5% | 10.4% | Buying companies is a larger part of the market |
| SBA Express share | 31.7% | Two loans in three went through the full 7(a) process | |
| Fixed-rate share | 14.7% | Most payments float with the base rate | |
| Start-ups / franchises | 15.2% / 10.8% | Mostly existing businesses |
Freight: two of the top five
By loan count the largest Illinois industries were long-distance truckload carriers (335 loans), full-service restaurants (325), limited-service restaurants (186), residential remodelers (146) and local general freight trucking (133). Between them the two trucking codes account for 468 loans, reflecting the Chicago area's role as a rail and highway hub. Lenders read the two kinds of carrier differently.
| Question | Long-distance truckload | Local freight |
|---|---|---|
| Where revenue comes from | Loads booked through brokers or contracted with shippers, often on the spot market | Recurring routes and drayage for local shippers, rail yards and warehouses |
| What the lender worries about | Freight-rate swings and dependence on one broker | Concentration in a few shippers or one terminal |
| Collateral | Tractors and trailers that lose value with miles | Trucks, plus sometimes a yard or terminal |
| Best-fit financing | Equipment loans for the fleet; 7(a) for an acquisition or working capital | 7(a) or conventional term debt; a line against receivables for a larger carrier |
Either way, the equipment term matters. SBA allows up to 10 years for equipment, or 15 if its useful life supports it, and a lender will test whether a used truck can support the term requested. Carriers with receivables from creditworthy shippers can also borrow against them; borrowing bases commonly cap any single customer at 20% to 25% of eligible receivables, which bites for a carrier with one big account. See long-haul trucking, local freight trucking and factoring vs asset-based lending.
Buying an Illinois business
Illinois lenders approved 654 acquisition loans at a median of $650,000 and a median rate of 9.5%, below the state's overall median, consistent with most sitting above the $350,000 line where SBA's cap drops to the base rate plus 3%. The federal rules follow the deal: at least 10% of total project costs as equity; a seller note counting for up to half of that only on full standby for the life of the loan; no earnout; an independent valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000; and a personal guarantee from every owner of 20% or more. SBA 7(a) acquisition loans covers each.
The rules tighten on 1 October 2026 under SOP 50 10 8.1. A change of ownership will need 1.25x debt service coverage on historical results, financial due diligence on every deal, and a quality of earnings report where the acquisition is $3 million or more excluding real estate. The loan will amortize over no more than 10 years except for its real estate share, and the seller's consulting period can run up to 24 months, up from 12.
Illinois makes the buyer of a business's assets responsible for the seller's unpaid state taxes unless the sale is reported to the Department of Revenue before closing. The state can then order part of the price withheld until those taxes are paid.
A similar successor rule applies to unemployment insurance contributions. Lenders expect both handled through escrow and reflected in the sources and uses; see escrow and holdbacks. Ask the seller for the latest full year of figures and the tax standing at the letter of intent, not at closing.
Real estate: 504, land trusts and property taxes
Illinois borrowers took 714 SBA 504 loans at a median of $617,500, about one for every eight 7(a) loans. A 504 project is typically 50% bank, 40% CDC and 10% borrower, rising to 15% for a new business or special-purpose property and 20% for both, and the business must occupy at least 51% of an existing building. Since July 2026 the 504 and 7(a) limits are counted separately, so a building bought through 504 no longer uses up room under the 7(a) limit that an acquisition may need.
- Land trusts. Illinois real estate is often held in a land trust, with the trustee on title and the owner holding the beneficial interest. A lender taking the property as collateral needs the trustee to sign the mortgage and usually takes a collateral assignment of the beneficial interest too. Identify the trustee early; its sign-off is a closing step of its own.
- Property taxes. Taxes in Cook County and much of the Chicago area are a large line in any property budget, and assessments change on a regular cycle. Lenders underwrite the current bill and ask about pending appeals or reassessments, so a coverage calculation should use the tax the owner will actually pay.
- Environmental review. Older industrial and trucking properties draw environmental questions, and lenders review commercial real estate collateral before they lend on it.
SBA 7(a) vs SBA 504 and buying a business with its real estate cover the structuring choices.
SBA or conventional for an Illinois company
Illinois has a deep base of manufacturers, distributors and logistics companies with years of statements, and many of them are better served outside SBA. A company with receivables and inventory can borrow on an asset-based line, where lenders typically advance 80% to 90% of eligible receivables and inventory at up to 85% of net orderly liquidation value. Senior cash-flow lenders to lower-middle-market companies commonly lend 2x to 3.5x EBITDA, and conventional bank lenders commonly look for coverage of at least 1.25x. SBA earns its place where a deal needs a 10% down payment, a longer term or credit for goodwill that a conventional lender will not give.
Transparent's book holds 1,800+ lenders: 278 write SBA 7(a) and 504, 1,148 write term and private credit, 235 write asset-based loans and lines, and 244 write equipment. An Illinois file can be shown to each kind from the same set of documents: two to three years of business and personal tax returns, a P&L, balance sheet and debt schedule with copies of notes being refinanced, a personal financial statement for each 20%+ owner and, for an acquisition, the target's latest full year and the letter of intent. Once they are in, the full lender package is built in a day. Nothing is charged before closing, and on SBA loans the lender pays Transparent. See our lenders.
Common questions
- What is the typical SBA loan size in Illinois?
- The median 7(a) loan approved from October 2023 to June 2026 was $160,000, with the middle half between $60,000 and $500,000. The national median was $150,300. Acquisition loans had a median of $650,000.
- Are SBA rates in Illinois higher than elsewhere?
- No. The median rate at approval was 10.25%, the same as the national median, with the middle half of loans between 9.25% and 11%. Acquisition loans, which are larger, priced at a median of 9.5%.
- Can I use an SBA loan to buy a trucking company in Illinois?
- Yes. Trucking was the state's largest industry by SBA loan count. Lenders will look at customer and broker concentration, the age and value of the fleet, and how the business covered its payments when freight rates were weak. The fleet itself is often better financed with equipment loans alongside the SBA loan.
- My building is in an Illinois land trust. Can it secure an SBA loan?
- Yes. The trustee signs the mortgage at the owner's direction, and the lender usually also takes a collateral assignment of the beneficial interest. Bring the trust documents and the trustee's contact to the start of the process.
- What is the Illinois bulk sales notice?
- When a business sells the major part of its assets, the sale should be reported to the Illinois Department of Revenue before closing. If it is not, the buyer can become liable for the seller's unpaid state taxes, and the state can order part of the price withheld.