From 1 October 2023 to 30 June 2026, SBA lenders approved 10,743 7(a) loans in New York worth $3.59 billion. The median loan was $150,000, level with the national median of $150,300, but the median rate at approval was 10.75%, above the national 10.25%. SBA Express made up 52.3% of loans. Acquisitions were only 4.7% of loans, at a median of $650,000. New York owners should use SBA for acquisitions and long-term needs where its terms help, and look hard at conventional lines and term loans for everything else.
| Measure | New York | All industries |
|---|---|---|
| SBA 7(a) loans approved | 10,743 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $300,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 7.2% | 12.9% |
| Median rate at approval | 10.75% | 10.25% |
| Middle half of rates | 9.75% – 12% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 504 (4.7%) | 16,849 (10.4%) |
| Median acquisition loan | $650,000 | $693,000 |
| Lenders that made these loans | 203 | 1,648 |
| SBA 504 loans (real estate, equipment) | 529 | 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
- 10,743 (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $150,000 (national: $150,300)
- Median rate at approval
- 10.75%, middle half 9.75% to 12%
- SBA Express share
- 52.3% of loans
- Acquisition loans
- 504 of the 7(a) loans (4.7%), median $650,000 at 9.5%
- Lenders that approved a New York loan
- 203
A small-loan, Express-led market
The middle half of 7(a) loans ran from $50,000 to $300,000, one loan in ten was larger than $690,000, and only 778 loans, 7.2% of the total, reached $1 million or more. The median loan supported 3 jobs. Start-ups were 9.3% of loans and franchises just 4%, so these are mostly existing, independent businesses: restaurants, contractors, shops and service firms.
More than half of those loans, 52.3%, were SBA Express. Express loans are capped at $500,000, carry a smaller SBA guaranty than a standard 7(a) loan, and are decided on the lender's own forms and credit process. They can be structured as revolving lines, which makes them a common way for a small New York business to get a working-capital line with a government guaranty behind it. The trade-off is that the lender carries more of the risk itself, so it tends to lend on simple, well-documented files and to keep the loans small.
| Measure | New York | All states | What it suggests |
|---|---|---|---|
| Median 7(a) loan | $150,000 | $150,300 | Typical New York loans are the national size, but the spread is narrow: few reach seven figures. |
| Median rate at approval | 10.75% | 10.25% | New York pays more on a loan of the same median size; the loan mix, not the loan size, is the likely difference. |
| Acquisitions as a share of loans | 4.7% | 10.4% | Buying a business with SBA is less than half as common in New York as nationally. |
Why New York rates run higher
New York's median rate at approval was 10.75%, and the middle half ran from 9.75% to 12%, a band sitting above the national median of 10.25%. Only 10% of loans were fixed-rate. The obvious explanation, small loans, does not hold on its own: New York's median loan of $150,000 is the same size as the national median of $150,300, and both sit in the same SBA pricing tier.
SBA caps the spread over the base rate by loan size: plus 6.5% for loans of $50,000 or less, plus 6% up to $250,000, plus 4.5% up to $350,000, and plus 3% above $350,000. What sets New York apart is the mix within those tiers. A quarter of its loans were $50,000 or less, in the widest tier, and more than half went through Express, where the SBA guaranty is smaller, the lender keeps more of the risk and has reason to price toward the cap. The data record rates, not lenders' reasons, but a market built on small Express loans will price like one.
The state's acquisition loans point the same way. They had a median of $650,000 and a median rate of 9.5%, well below the state's overall median rate. The typical one sits above the $350,000 line, where the spread is capped at the base rate plus 3%, is too large for Express, and finances a business with a cash-flow history the lender can test.
In New York, the size and type of loan move the rate more than the state does. A properly sized standard 7(a) loan for a real purpose can price better than a small Express line.
For a borrower, the lesson is to size the request to the need rather than to what feels easy to approve. A business that takes a small Express line when its real need is a term loan to buy equipment or refinance expensive debt pays the wider spread and still has the problem. The SBA loan rates page shows the tiers in full, and line of credit vs term loan covers which need belongs on which.
Buying a business in New York
Acquisitions accounted for 504 of New York's 7(a) loans, 4.7%, against 10.4% nationally. The businesses that do change hands are financed at a median of $650,000. The rules are the same as everywhere: equity of at least 10% of total project costs; a seller note counting for up to half of that only if it is on full standby for the life of the SBA loan; up to 10 years for the business and 25 years for real estate, with change-of-ownership loans from 1 October 2026 amortizing over no more than 10 years except the real estate share; and a personal guarantee from every owner of 20% or more. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, or buyer and seller are related, SBA requires an independent business valuation, and the loan for the purchase cannot exceed it. From 1 October 2026 every change of ownership also needs financial due diligence, and a quality of earnings report on acquisitions of $3 million or more excluding real estate. SBA prohibits an earnout to the seller, and the seller may stay only as a consultant, for up to 12 months (24 from 1 October 2026), not as an owner, officer or employee. How SBA 7(a) loans finance a business acquisition covers the mechanics.
What makes a New York acquisition harder is usually not the credit. It is the things around it:
- The lease. Most New York businesses rent, and many depend on their location. SBA lenders commonly want the lease, with renewal options, to run at least as long as the loan, and the landlord must consent to the assignment or sign a new lease with the buyer. New York City landlords often ask the new owner for a personal guarantee of the lease as well. Start the landlord conversation when the letter of intent is signed, not after the loan is approved.
- Sales tax in an asset purchase. New York requires a buyer of business assets to notify the state tax department before closing. A buyer who does not can become liable for the seller's unpaid sales tax, and lenders expect the notice and the state's response in the closing file.
- Licenses. Restaurants, contractors and many service firms operate under licenses and permits that do not automatically pass to a buyer. A lender will want to see how each one transfers or is reissued.
- Coverage on a thin margin. SBA requires debt service coverage of at least 1.15x, and from 1 October 2026 a change of ownership must show 1.25x on historical results, the level conventional bank lenders commonly look for. With high rent and payroll, many New York businesses run at thinner margins, so the add-backs matter more. Lenders credit the ones a document supports; see EBITDA add-backs.
What lenders need to finance an acquisition lists the full document set.
Restaurants, remodelers and trades
By loan count, the five biggest New York industries were full-service restaurants (519 loans), residential remodelers (326), limited-service restaurants (298), fitness and recreational sports centers (192) and plumbing, heating and air-conditioning contractors (189). Two of the five are building trades, and remodelers rank second, which is unusual.
Lenders read a remodeler or contractor differently from a restaurant. A remodeler collects deposits before the work is done, so its bank balance overstates what it owns: the lender will treat customer deposits as a liability and compare them with work in progress. New York's lien law also treats a home improvement contractor's payments received before completion as trust funds, to be held in escrow or covered by a bond, so a lender will not count that cash as free. It will want the job list, how many jobs are open and whether margins hold on completed work. Home improvement work in New York City and several surrounding counties requires a license, and the lender will check that it is current. For plumbing and HVAC firms, service agreements and commercial maintenance work read as recurring revenue; see the plumbing and HVAC data page.
Restaurants and fitness centers are underwritten on the lease, the build-out and the history. A New York restaurant with years of tax returns, a long lease and a track record in the same location is a much stronger file than a new concept in a new space. The full-service restaurants page has the national figures for that industry.
The personal side of a New York file
Every SBA loan is personally guaranteed by each owner of 20% or more, and each of them provides personal tax returns and a personal financial statement. SBA lenders also run a global cash flow that nets the owners' personal debt payments against the business's earnings, which must cover at least 1.0x, and some deduct a living allowance. In New York, where housing is expensive, that personal side can decide a file that looks fine at the business level.
Collateral works the same way. When business assets do not fully secure a loan, SBA expects lenders to take available equity in the owners' personal real estate. New York charges a mortgage recording tax when a mortgage is recorded, so pledging a home or financing a building carries a closing cost that belongs in the uses of funds from the start.
SBA or conventional for a New York business
New York's 529 SBA 504 loans, at a median of $749,000, show the program is used here for buildings and long-life equipment, typically 50% from a bank, 40% from a certified development company and 10% from the borrower (15% for a new business or special-purpose property), for a business occupying at least 51% of an existing building or 60% of new construction. For an established company, though, the better loan is often not an SBA loan at all.
| Need | Usually fits | Why |
|---|---|---|
| A small working-capital line | SBA Express or a bank line | Express goes up to $500,000; a conventional bank line carries no SBA guaranty fee. |
| A line that grows with receivables | Asset-based line | Asset-based lenders typically advance 80% to 90% of eligible receivables, so availability rises with sales. |
| Buying a company whose value is mostly goodwill | SBA 7(a) | Ten-year amortization and a 10% minimum injection. |
| Buying the building the business occupies | SBA 504, or 7(a) over up to 25 years | A borrower share of roughly 10% on a typical 504 project. |
| A project larger than $5 million | Conventional, or SBA with a conventional piece | 7(a) stops at $5 million, though since July 2026 a 504 on the real estate is counted separately; senior cash-flow lenders commonly lend 2x to 3.5x EBITDA. |
Transparent's lender book holds 1,800+ lenders: 278 write SBA 7(a) and 504, 235 write asset-based loans and lines, and 1,148 write conventional term and private credit. Only 203 lenders approved a New York 7(a) loan in the period, so for a larger or less typical New York request, the lenders outside the state's usual SBA channel matter. A lender does not need a New York branch to lend here; SBA 7(a) vs a conventional acquisition loan compares the two routes for a purchase.
What to prepare
The core SBA documents are the same in every state: two to three years of business and personal tax returns, a P&L, balance sheet and debt schedule with copies of notes being refinanced, and a personal financial statement for each 20%+ owner. A New York file should add:
- The current lease with every amendment and renewal option, and where the landlord stands on assignment or a new lease
- For an asset purchase: a plan for the bulk-sale notice to the state tax department before closing
- Every license and permit the business operates under, and how each passes to the buyer
- For remodelers and contractors: the open job list, customer deposits and how they are held
- For an acquisition: the target's latest full year of figures and the letter of intent
Once they are in, Transparent builds the full lender package, a financing model, lender presentation, blind teaser and underwriting memo, in a day; by hand the same package takes at least a week. Transparent charges nothing before a loan closes, and on SBA loans the lender pays Transparent, not the borrower. The package shows what lenders receive.
Common questions
- What is the typical SBA loan size in New York?
- The median New York 7(a) loan approved from October 2023 to June 2026 was $150,000, with the middle half between $50,000 and $300,000. Acquisition loans were larger, at a median of $650,000, and SBA 504 loans had a median of $749,000.
- Why are SBA rates higher in New York?
- The data show the gap, not the reason, but the loan mix is the likely cause. New York's median loan is the national size, yet a quarter of its loans were $50,000 or less, where SBA allows the widest spread, and more than half were Express loans, where the lender carries more of the risk. The state's median rate was 10.75%, while its larger acquisition loans had a median rate of 9.5%.
- Is SBA Express a good option for a New York business?
- For a small, simple need, often yes: Express loans go up to $500,000, can be revolving lines, and made up 52.3% of New York approvals. For an acquisition, real estate or anything complex, the standard 7(a) or 504 program usually fits better.
- What should a buyer do about the lease when buying a New York business?
- Start early. Lenders commonly want the lease, with options, to run at least as long as the loan, and the landlord must consent to the assignment or sign a new lease. Expect the landlord to ask the buyer for a personal lease guarantee.
- Do I need a New York lender for a New York SBA loan?
- No. A lender does not need a New York branch to make an SBA loan there. For larger or unusual requests, looking beyond the lenders active in the state widens the field.