SBA lenders approved 271 7(a) loans to for-profit individual and family services providers from October 2023 through June 2026, $62,918,800 from 70 lenders. The median loan was $150,000, level with the national $150,300, at a median rate of 10.5% against 10.25%. Start-ups took 21.8% of loans, a high share, and acquisitions only 3.7% against 10.4% nationally. Lenders decide these loans on who pays the business and how reliably, on the licenses and contracts it operates under, and on the owner, because there is little collateral behind the loan.
| Measure | Other Individual and Family Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 271 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $282,650 | $50,000 – $500,000 |
| Loans of $1 million or more | 3% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 10 (3.7%) | 16,849 (10.4%) |
| Median acquisition loan | $175,500 | $693,000 |
| Lenders that made these loans | 70 | 1,648 |
| SBA 504 loans (real estate, equipment) | 21 | 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
- 271 (Oct 2023 – Jun 2026), from 70 lenders
- Median loan
- $150,000 (national $150,300)
- Median rate at approval
- 10.5% (national 10.25%)
- Start-ups / franchises
- 21.8% / 12.9% of loans
- Acquisitions
- 10 loans (3.7%), median $175,500
- SBA 504
- 21 loans, median $390,000
First, who can borrow
NAICS 624190 collects social assistance to individuals and families that is not child care, elder care or disability services: counseling and case management outside a medical practice, family support and supervised visitation, life-skills and re-entry programs, community support services, crisis and self-help programs. Much of that work is done by nonprofits, and nonprofits are not eligible for SBA 7(a) loans. Every loan in these figures went to a for-profit business.
The for-profits are usually providers under contract to someone else: a county or state agency, a court system, a managed-care plan or a Medicaid waiver program. Franchise systems operate here too; 12.9% of loans went to franchisees. The business has staff and a caseload, not machines or inventory. The median loan supported 4 jobs.
The figures against the national ones
| Figure | Individual and family services | What it says |
|---|---|---|
| Loans / total / lenders | 271 / $62,918,800 / 70 | About four loans per active lender |
| Median loan | $150,000 | Level with the national $150,300 |
| Middle half of loans | $50,000 to $282,650 | Working capital, office build-outs, vehicles |
| 90th percentile | $500,000 | Very few large loans |
| Loans of $1 million or more | 8 (3%) | A thin top end |
| Median rate (middle half) | 10.5% (9.5% to 11.5%) | Small loans sit under higher SBA rate caps |
| Fixed-rate share | 12.9% | Most loans float |
| Median term | 120 months | Ten years |
| SBA Express | 36.9% | A large minority of small loans |
| Start-ups / franchises | 21.8% / 12.9% | Many new providers |
| Acquisitions | 10 (3.7%), median $175,500 at 9.88% | Rare and small |
The median loan sits exactly on SBA's $150,000 line, where the guaranty is 85% at or below and 75% above. For a lender taking a loan with little collateral behind it, that higher guaranty matters, and half the loans in this industry are sized at or under it.
Who pays the business, and how lenders read it
The central underwriting question is the payer. A provider paid privately by families is judged like any small service business: steady demand, collections, owner draws. A provider paid by an agency has a different profile. The customer is solvent and will pay, but it pays on its own schedule, it can change rates or rules, and its contract can end at renewal.
| Payer | Strength | What the lender asks |
|---|---|---|
| County or state agency contract | A creditworthy payer with defined rates | Contract term and renewal date, how long invoices take to pay, what share of revenue it is |
| Medicaid waiver or managed-care plan | Recurring revenue tied to enrolled clients | Provider enrollment, authorization limits, audit history, any recoupment |
| Courts and referral agencies | Steady referrals once established | Concentration in one court or referral source |
| Private pay families | No government rate risk | Client turnover, marketing cost, how fees are collected |
A provider with one agency contract behind most of its revenue has a concentration question, and the lender will look at the contract itself, its term and termination rights, not just the revenue it produced last year. Slow government payment also means the business finances its payroll ahead of collections; a working-capital line fits that gap better than a term loan. See lines of credit for government contractors and what lenders look for in a receivables aging.
An agency contract is an asset only until its renewal date. Show the lender the renewal history, not just the current term.
Start-ups, collateral and the owner
Start-ups took 21.8% of loans, and that is the harder case. A new provider may not yet be licensed or enrolled with the agencies it plans to serve, and a lender cannot count revenue from a contract the business does not hold. Lenders want the license, the provider enrollment or the signed contract in hand, or a clear path to it, and an owner who has done the work before, often as a clinician, case manager or program director at another provider. That record belongs in the resume that supports SBA Form 1919.
A start-up must inject at least 10% of total project costs, and every owner of 20% or more personally guarantees the loan. Because the business owns little that a lender could sell, the guarantee and any personal real estate carry more weight than they would for a contractor or a manufacturer. SBA does not require full collateral coverage, but lenders take what is available.
Lenders also look at the risks that come with serving vulnerable clients: background checks on staff, professional and abuse liability insurance, incident reporting, and any agency audits. A provider with an open corrective-action plan or a recoupment demand should disclose it; it will surface in diligence anyway.
Buying a provider, and buying a building
Only 10 loans financed a change of ownership, 3.7% of the industry, at a median of $175,500 and a median rate of 9.88%. Acquisitions are rare because much of the value does not transfer on its own. Licenses and provider enrollments often have to be reissued to a new owner, agency contracts may need consent to assign, and referral relationships follow people. A buyer should confirm each of those before signing, and SBA's rule that the seller may consult for only up to 12 months (up to 24 months under SOP 50 10 8.1 from 1 October 2026) sets the window for handing them over. See change-of-control consents.
Twenty-one SBA 504 loans went to the industry, at a median of $390,000, for offices and program space. The business must occupy at least 51% of an existing building; the project is typically 50% bank, 40% CDC and 10% borrower, or 15% for a new business. See SBA 7(a) vs 504.
Preparing the file
The SBA list: business tax returns for 2–3 years, a P&L and balance sheet, a year-to-date P&L through last month-end, a debt schedule with copies of any notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more. For a services provider, add revenue by payer for the last full year, copies of the main agency contracts with their terms, licenses and provider enrollments, a receivables aging by payer, and staffing and insurance summaries.
SBA requires debt service coverage of at least 1.15x, and 1.0x globally including the owners; see global cash flow. Transparent builds the full lender package in a day once the documents are in and matches the file against the 278 lenders in its book that write SBA 7(a) and 504; on SBA loans the lender pays Transparent, not the borrower.
Common questions
- Can a nonprofit family services agency get an SBA 7(a) loan?
- No. SBA 7(a) lends to for-profit businesses. Every loan in these figures went to a for-profit provider.
- How much do family services providers borrow from SBA?
- The median 7(a) loan from October 2023 through June 2026 was $150,000, and the middle half ran from $50,000 to $282,650. Only 8 loans were $1 million or more.
- Does a government contract help my application?
- It helps if the lender can see its term, renewal history and payment record. A contract that makes up most of your revenue is also a concentration risk, and the lender will read its termination terms closely.
- Can I start a family services business with an SBA loan?
- Yes; start-ups took 21.8% of loans in this industry. Expect to inject at least 10% of total project costs, to show relevant experience, and to have your license, provider enrollment or first contract in hand or clearly on the way.
- Why are acquisitions so rare in this industry?
- Because licenses, provider enrollments and agency contracts often do not transfer automatically to a new owner. Only 10 acquisition loans were made in the period, at a median of $175,500.