From 1 October 2023 to 30 June 2026, 193 SBA lenders approved 5,627 7(a) loans in Michigan worth $2.30 billion. The median loan was $150,000, almost exactly the national $150,300, and the median rate was 10.25%, the national figure, with the middle half in a narrow band of 9.5% to 10.5%. Acquisitions were 11.2% of loans, above the national 10.4%, at a median of $559,050. SBA earns its place when a deal is mostly goodwill or the buyer needs a low down payment; where equipment and steady earnings already carry the loan, conventional debt may be simpler.
| Measure | Michigan | All industries |
|---|---|---|
| SBA 7(a) loans approved | 5,627 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $379,800 | $50,000 – $500,000 |
| Loans of $1 million or more | 10.7% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.5% – 10.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 630 (11.2%) | 16,849 (10.4%) |
| Median acquisition loan | $559,050 | $693,000 |
| Lenders that made these loans | 193 | 1,648 |
| SBA 504 loans (real estate, equipment) | 349 | 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
- 5,627, worth $2.30 billion (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $150,000 (national: $150,300)
- Median rate at approval
- 10.25%, middle half 9.5% to 10.5%
- Acquisition loans
- 630 (11.2%), median $559,050 at 9.25%
- SBA Express share
- 38.6% of loans
- SBA 504 loans
- 349, median $609,000
Michigan against the national figures
On the headline measures Michigan is the national market in miniature. The median 7(a) loan was $150,000 against $150,300 nationally, and the median rate at approval, 10.25%, matched the country. Underneath the median, though, sit two different markets. The middle half of Michigan loans ran from $50,000 to $379,800, and 38.6% of all loans went through SBA Express, the streamlined program capped at $500,000 with a 50% guaranty. At the other end, one loan in ten was larger than $1,035,000, and 604 loans, 10.7% of the total, were for $1 million or more. Franchises took 9% of loans and start-ups 17.5%, so most Michigan borrowers were independent companies with results a lender could read.
| Measure | Michigan | What it tells a borrower |
|---|---|---|
| Median 7(a) loan | $150,000 (national $150,300) | A typical loan size; most Michigan SBA borrowing is modest working capital, equipment and small purchases. |
| Median rate at approval | 10.25% (national 10.25%) | No Michigan premium or discount on price. |
| Middle half of rates | 9.5% to 10.5% | A one-point band: there is less to win on rate than on structure and lender fit. |
| Acquisitions share | 11.2% (national 10.4%) | Buying an existing company is a slightly bigger part of the Michigan market. |
| Start-ups | 17.5% of loans | Most Michigan borrowers had a track record for lenders to read. |
| Fixed-rate loans | 9% | Nine loans in ten float with the base rate. |
A tight rate band, and where Michigan loans sit in SBA's caps
SBA caps the variable rate a lender may charge by loan size, and Michigan's middle half of loans, $50,000 to $379,800, happens to straddle all four tiers. So a small Express loan and a large acquisition loan are priced under different ceilings, which accounts for part of the spread. The median acquisition loan priced at 9.25%, a full point below the state's median rate; at $559,050 it sits in the tier with the lowest cap.
| Loan size | Maximum variable rate | Where Michigan loans fall |
|---|---|---|
| $50,000 or less | Base rate plus 6.5% | At least a quarter of Michigan loans, since the middle half starts at $50,000 |
| $50,001 to $250,000 | Base rate plus 6% | The median Michigan loan of $150,000 |
| $250,001 to $350,000 | Base rate plus 4.5% | Upper-middle loans, below the top quarter |
| Above $350,000 | Base rate plus 3% | The top quarter (from $379,800), the median acquisition of $559,050 and the $1 million-plus loans |
With rates only a point apart across the middle half, shopping rate alone rarely wins much. Offers differ more on term, collateral, willingness to lend against goodwill, and whether the lender takes the deal at all. SBA loan rates and the SBA maximum interest rate entry explain the caps.
Trucks, trades and restaurants: the Michigan mix
By loan count, Michigan's top five industries were full-service restaurants (257 loans), limited-service restaurants (210), long-distance truckload carriers (171), residential remodelers (155) and landscaping services (136). Trucking in third place, ahead of every trade, is the feature that sets the state apart, and it brings its own underwriting.
Trucking. A carrier's collateral is its tractors and trailers, which lose value with every mile, so lenders ask for an equipment list with year, mileage and liens. They read freight concentration closely: a carrier hauling mostly for one broker or shipper, often in the auto supply chain, can lose that lane at a contract renewal. Insurance, fuel, driver turnover and the safety record all sit in the file. Many carriers finance trucks on equipment loans and use SBA for goodwill or working capital; see equipment financing vs an SBA 7(a) loan and SBA loans for long-haul trucking.
Remodelers and landscapers. Michigan winters compress the year for both. A landscaper may earn most of its revenue between spring and late fall, with snow contracts carrying the winter if it has them. Lenders want monthly revenue to see whether payments are covered through the trough, and a seasonal line of credit sized to the gap often beats a larger term loan. See landscaping services and residential remodelers.
When the auto supply chain is in the file
Many established Michigan manufacturers, machine shops, tooling makers and logistics firms sell into the auto supply chain, and lenders underwrite that exposure directly: the share of revenue from the largest customer and the top five, whether work sits under multi-year program awards or open purchase orders, and what happened in the last production cut. A file that answers with figures reads very differently from one that leaves the lender to guess.
Concentration also shapes the working-capital line. Asset-based lenders typically advance 80% to 90% of eligible receivables, but borrowing bases commonly cap any single customer at 20% to 25% of eligible receivables. A supplier with half its receivables owed by one customer will find that much of that balance does not count, so availability is well below what the aging suggests. How a borrowing base works and concentration limit go further, and customer concentration in an acquisition covers how buyers are judged on it.
Buying a Michigan business
Michigan lenders approved 630 acquisition loans at a median of $559,050, nearly four times the state's median loan. The core rules are federal: at least 10% of total project costs as equity; a seller note counts toward up to half of that only on full standby, with no principal or interest paid, for the life of the SBA loan; no earnout to the seller; and a guarantee from every owner of 20% or more. Several rules change for applications from 1 October 2026 under SOP 50 10 8.1.
| Rule for a change of ownership | Before 1 October 2026 | From 1 October 2026 |
|---|---|---|
| Debt service coverage | At least 1.15x (1.0x globally, including the owners) | 1.25x on historical results |
| Financial due diligence | Lender's judgement | Required on every change of ownership |
| Quality of earnings report | Lender's judgement | Required on acquisitions of $3 million or more, excluding real estate |
| Amortization | Up to 10 years for goodwill and working capital | No more than 10 years, except the real estate share |
| Seller staying on | Consulting for up to 12 months | Consulting for up to 24 months |
The seller's transition period matters in Michigan, where many companies run on the founder's customer relationships. The longer consulting window helps a buyer keep those relationships through the handover; see SBA seller transition. How SBA 7(a) loans finance a business acquisition and seller notes and the full-standby rule cover the structure.
SBA, 504 or conventional for a Michigan company
- A purchase that is mostly goodwill: SBA 7(a), for the 10% minimum equity and the 10-year term. Conventional banks commonly look for coverage of at least 1.25x and more equity against intangible value.
- A plant or building the company occupies: SBA 504, which typically splits the project 50% bank, 40% CDC and 10% borrower. Michigan's 349 504 loans had a median of $609,000. SBA 7(a) vs SBA 504 compares the two.
- Machinery: 7(a) runs up to 10 years for equipment, 15 if its useful life supports it; an equipment lender may match that without SBA's paperwork.
- A company too large for SBA: 7(a) stops at $5 million. Senior cash-flow lenders to lower-middle-market companies commonly lend 2x to 3.5x EBITDA; see acquisitions above the SBA limit.
SBA will not refinance an active merchant cash advance; from 1 October 2026 one becomes eligible only after conversion to a term loan that has amortized for at least 24 months with no new advance since. Refinancing merchant cash advances covers the other routes.
Preparing a Michigan file
The SBA documents are the same in every state: two to three years of business and personal tax returns, a P&L and balance sheet, a debt schedule with copies of notes being refinanced, and a personal financial statement for each 20%+ owner. A Michigan file is stronger when it also includes:
- Revenue by customer, with any program awards or supply agreements, for a supplier
- Monthly revenue for at least the last full year, for any seasonal business
- An equipment list with year, mileage or hours and existing liens, for a carrier or manufacturer
- For an acquisition, the target's latest full year of figures and the letter of intent
The 193 lenders that approved Michigan loans have different boxes: Express-size working capital, acquisitions above $1 million, equipment-heavy credits. Transparent's lender book holds 1,800+ lenders, 278 writing SBA 7(a) and 504 and 244 writing equipment, so an SBA request and its alternatives can be tested on one file. Once the documents are in, Transparent builds the full lender package in a day; by hand it takes at least a week. Nothing is charged before closing, and on SBA loans the lender pays Transparent. The package shows what lenders receive.
Common questions
- Are SBA loan rates in Michigan higher than the national average?
- No. The median rate at approval from October 2023 to June 2026 was 10.25%, the same as nationally, and the middle half of Michigan loans priced between 9.5% and 10.5%. Larger loans priced lower: the median acquisition loan was 9.25%, consistent with SBA's lower cap, the base rate plus 3%, on loans above $350,000.
- Can a Michigan trucking company get an SBA loan?
- Yes. Long-distance truckload carriers were Michigan's third-largest SBA industry by loan count, with 171 loans. Lenders will read the age and mileage of the fleet, freight concentration, insurance and fuel costs, and the carrier's safety record. Trucks themselves are often financed on equipment loans, with SBA used for goodwill or working capital.
- Will a lender finance a supplier that depends on one automaker or tier supplier?
- It can, but concentration will be priced into the decision. Expect questions on the customer's share of revenue, contract terms and past production cuts. On a line of credit, borrowing bases commonly cap any single customer at 20% to 25% of eligible receivables, which limits availability.
- How do slow winter months affect an SBA loan for a Michigan landscaper?
- Lenders will look at monthly revenue to see whether payments are covered through the slow months, and at snow removal or other winter contracts. A seasonal line of credit alongside a smaller term loan often fits better than one large loan.
- What changes for Michigan buyers on 1 October 2026?
- Under SOP 50 10 8.1, a change of ownership must show 1.25x debt service coverage on historical results, every change of ownership needs financial due diligence, and acquisitions of $3 million or more excluding real estate need a quality of earnings report. The seller may consult for up to 24 months instead of 12.