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SBA lending data

SBA loans for CPA firms: a succession market financed by 7(a)

Almost a quarter of SBA loans to CPA firms buy one. The loans are larger than the national median, priced lower, and built almost entirely on goodwill, which puts the seller's transition and the firm's client retention at the center of the credit.
Written by the Transparent underwriting desk · Updated
Quick answer

SBA lenders approved 940 7(a) loans to CPA firms between October 2023 and June 2026, $466,645,600 from 193 lenders. The median loan was $277,150, well above the national $150,300, at a median rate of 9.99%, below the national 10.25%. The defining figure is acquisitions: 231 loans, 24.6% of the total against 10.4% nationally, at a median of $525,000. Start-ups were only 3.6%. Lenders finance CPA practice purchases readily, but on SBA's terms: the seller cannot stay on as an employee, no earnout is allowed, and the price must be supported by an independent valuation.

Offices of Certified Public Accountants: what SBA lenders approvedSBA loan records
MeasureOffices of Certified Public AccountantsAll industries
SBA 7(a) loans approved940162,355
Median loan$277,150$150,300
Middle half of loans$100,000 – $642,925$50,000 – $500,000
Loans of $1 million or more14.8%12.9%
Median rate at approval9.99%10.25%
Middle half of rates8.75% – 11%9.3% – 11.25%
Acquisitions (change of ownership)231 (24.6%)16,849 (10.4%)
Median acquisition loan$525,000$693,000
Lenders that made these loans1931,648
SBA 504 loans (real estate, equipment)7016,714

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
940 (Oct 2023 – Jun 2026)
Median loan
$277,150 (national $150,300)
Median rate at approval
9.99% (national 10.25%)
Acquisitions
231 loans (24.6%), median $525,000
Loans of $1 million or more
139 (14.8%)
Start-ups
3.6% of loans

What the approvals show

Offices of certified public accountants (NAICS 541211) are licensed CPA firms: tax, audit and review, compilation, bookkeeping and advisory practices, from sole practitioners to regional firms. From FY2024 through June 2026 SBA lenders approved 940 7(a) loans to them, $466,645,600 from 193 lenders. The median loan supported 4 jobs. Non-CPA bookkeeping and accounting practices are covered on SBA loans for bookkeeping and accounting firms.

SBA 7(a) approvals to CPA firms, 1 Oct 2023 – 30 Jun 2026, cancelled loans excluded.
FigureCPA firmsWhat it says
Median loan$277,150Nearly twice the national $150,300
Middle half of loans$100,000 to $642,925Most practice purchases sit in the upper half
90th percentile$1,315,700Larger firm acquisitions and partner buyouts
Loans of $1 million or more139 (14.8%)A large share for a service business with no hard assets
Median rate9.99% (middle half 8.75% to 11%)Below the national 10.25%, because loans are larger
Fixed-rate share14.4%Most loans float
SBA Express30.4% of loansMost requests are standard 7(a)
Start-ups3.6% of loansVery few new firms borrow
Acquisitions231 loans (24.6%), median $525,000 at 9.5%More than twice the national 10.4%
SBA 50470 loans, median $404,500Firms buying their office

The rate follows the size. SBA's variable-rate caps fall as loans grow: base plus 6% from $50,001 to $250,000, plus 4.5% from $250,001 to $350,000 and plus 3% above $350,000. The industry median of $277,150 sits in the plus-4.5% tier, and the acquisition median of $525,000 in the plus-3% tier, which is why CPA firms borrow below the national median rate. See SBA maximum interest rate.

Why nearly a quarter of the loans buy a firm

Acquisitions made up 24.6% of CPA loans, more than twice the national share. The reason is succession. Many firms are owned by partners approaching retirement, the practices have durable, recurring clients, and the natural buyers are other CPAs: a senior manager buying out an owner, a sole practitioner adding a book, or a small firm combining with another. SBA 7(a) fits because it lends against cash flow and goodwill over up to 10 years, which is what a practice purchase needs.

Start-ups, by contrast, were 3.6% of loans. A CPA who goes out alone usually starts with a few clients and little cost, and borrows later to buy a book. State accountancy rules generally require a CPA firm to be majority-owned by licensed CPAs, so the buyer of a firm is almost always a CPA, and a lender will want to see the buyer's license and practice history. See buyer industry experience requirements.

The seller's transition is where deals bend

The traditional CPA practice sale has the selling partner stay for a tax season or two, introducing clients and reviewing returns, often paid through a price that adjusts with the clients who stay. SBA financing changes that script in three places.

How SBA rules reshape a CPA practice sale.
Traditional practice-sale termUnder an SBA loan
Seller works in the firm through one or more tax seasonsIn a complete change of ownership the seller may not stay as an owner, officer or employee. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026
Price adjusts with retained clientsSBA prohibits an earnout to the seller in a change of ownership it finances
Seller carries much of the priceA seller note counts toward up to half of the 10% minimum equity only if on full standby for the life of the loan; otherwise it is debt in the coverage test
Price set by rule of thumbAn independent valuation is required where the amount financed, less appraised real estate and equipment, exceeds $250,000, and the loan cannot exceed it

The extension of the consulting period from 1 October 2026 matters for this trade more than most: 24 months spans two full tax seasons, which is close to what practice buyers have always wanted from a seller. Where the seller wants to keep a stake and keep working, a partial change of ownership is a different path with its own rules; it is also the structure when remaining partners buy out one who is leaving.

Settle how the seller will hand over clients, and how the price is protected without an earnout, before the letter of intent is signed. It is the part of a CPA deal lenders read first.

How a lender underwrites a CPA firm

With little to pledge, the lender underwrites the durability of fees. It looks at revenue by service line, because each line behaves differently:

Service lines in a CPA firm, as a lender weighs them.
Service lineWhat the lender reads
Individual tax returnsRecurring and loyal, but concentrated in a few months and exposed to retirements among clients
Business tax and year-round advisoryHigher fees per client and more durable relationships
Audit, review and attest workValuable, but requires the firm's peer review and staff able to perform it; tied to the partner who signs
Bookkeeping and client accounting servicesMonthly recurring fees, the steadiest line
One-off consulting and projectsGiven the least weight

Beyond the mix, the lender will ask about client retention in past years, realization on billed hours, the managers and staff who will stay after a sale, and seasonality. A firm that earns most of its revenue between January and April must carry twelve monthly payments on it; lenders look at monthly P&Ls and bank deposits to see how the summer and fall are covered, and at receivables and work in progress at year-end. Cash flow must meet SBA's floor of 1.15x, and from 1 October 2026 a change of ownership must show 1.25x on historical results. For an owner-buyer, the lender sets a reasonable salary against the firm's earnings first; see buyer salary in acquisition DSCR.

Larger purchases carry more diligence. From 1 October 2026 financial due diligence is required on every change of ownership, and a quality of earnings report on acquisitions of $3 million or more excluding real estate. SBA 7(a) loans go up to $5 million, so a regional firm combination beyond that needs a different structure; see financing acquisitions above the SBA limit.

Preparing a CPA firm's SBA file

Start from SBA's standard 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, and personal tax returns and a personal financial statement for each owner of 20% or more. For a CPA firm purchase, add:

  • The target's latest full year of figures and the letter of intent
  • Revenue by service line and by client, with client tenure, names removed if needed
  • Monthly revenue for the last two years, to show the tax-season curve
  • Staff list with roles and tenure, and who holds the client relationships
  • The buyer's CPA license and resume, and for attest practices, the latest peer review

Transparent builds the lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, with the model laid out the way a lender tests a practice purchase: fees by line, seller's compensation normalized, buyer's salary set against cash flow. SBA's data shows 193 lenders approved a CPA firm loan in the period; Transparent's book holds 278 lenders that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower.

Common questions

How much do SBA lenders lend to buy a CPA firm?
From October 2023 to June 2026, 231 SBA loans financed CPA firm acquisitions, at a median of $525,000 and a median rate of 9.5%. Across all CPA firm loans, 139, or 14.8%, were $1 million or more.
Can the selling partner stay on through tax season after an SBA-financed sale?
Not as an employee in a complete change of ownership. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026, which covers two tax seasons. A seller who wants to keep working and keep a stake may fit a partial change of ownership.
Can the price of a CPA practice depend on client retention with an SBA loan?
No. SBA prohibits an earnout to the seller in a change of ownership it finances, and a retention-based price adjustment works like one. Buyers usually rely instead on the seller's consulting period, a seller note on full standby, and diligence on client history.
Does the buyer of a CPA firm need to be a CPA?
In practice, usually yes. State accountancy rules generally require CPA firms to be majority-owned by licensed CPAs, and lenders want a buyer who can serve the clients and sign the work.
Why are SBA rates for CPA firms below the national median?
Because the loans are larger. The industry's median loan of $277,150 falls in the tier where SBA caps the spread at base plus 4.5%, and acquisition loans above $350,000 fall under the plus-3% cap. The industry's median rate was 9.99% against 10.25% nationally.
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