SBA lenders approved 1,973 7(a) loans to other personal care services, the NAICS code covering day spas, massage, waxing, tanning, tattoo and similar businesses, from October 2023 to June 2026: about $781 million from 328 lenders. The median loan was $170,000 at a median rate of 10.25%, both close to the national figures. What sets the industry apart is who borrows: start-ups took 41.6% of loans and franchises 27%, while acquisitions were only 5.9%. Lenders decide on the owner's liquidity and experience, the brand's unit economics, the lease and the collateral behind a build-out.
| Measure | Other Personal Care Services | All industries |
|---|---|---|
| SBA 7(a) loans approved | 1,973 | 162,355 |
| Median loan | $170,000 | $150,300 |
| Middle half of loans | $50,000 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 8.3% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.5% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 116 (5.9%) | 16,849 (10.4%) |
| Median acquisition loan | $554,700 | $693,000 |
| Lenders that made these loans | 328 | 1,648 |
| SBA 504 loans (real estate, equipment) | 92 | 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
- 1,973 (Oct 2023 – Jun 2026)
- Median loan
- $170,000
- Median rate at approval
- 10.25%
- Start-ups
- 41.6% of loans
- Franchises
- 27% of loans
- Acquisitions
- 116 loans (5.9%), median $554,700
Who borrows in this industry
NAICS 812199, other personal care services, is a catch-all for personal care that is not a barber, beauty salon, nail salon or diet center: day spas, massage studios, waxing and hair removal, tanning salons, tattoo and piercing studios and similar businesses. From FY2024 through June 2026 it took 1,973 SBA 7(a) loans worth $781,024,300 from 328 lenders.
| Figure | Other personal care | Reading |
|---|---|---|
| Median loan | $170,000 | Slightly above the national $150,300: a typical build-out |
| Middle half of loans | $50,000 to $500,000 | From equipment to a full franchise opening |
| Loans of $1 million or more | 164 (8.3%) | Multi-unit openings and larger spas; the 90th percentile is $933,900 |
| Median rate at approval | 10.25% (middle half 9.5% to 11.25%) | Level with the national median |
| Start-ups | 41.6% of loans | The defining feature of the industry's SBA lending |
| Franchises | 27% of loans | Franchised studio brands are a large share |
| Acquisitions | 116 loans (5.9%), median $554,700 at 9.75% | Well below the national 10.4% share |
| SBA Express | 32.9% of loans | Smaller loans on the lender's own credit process |
| Median jobs supported | 6 | Small staffed studios, not owner-only shops |
Compare that with the neighboring codes. Beauty salons, nail salons and barber shops are built around individual stylists and technicians; much of this category is built around franchised studios, many of them selling memberships. That changes what the lender underwrites.
Lending to a new studio
With 41.6% of loans going to start-ups, many files have little or no history to test. SBA requires an equity injection of at least 10% of total project costs for a start-up, and the rest of the credit rests on four things.
- The owner. Management experience, on a resume that supports SBA Form 1919, and liquidity left over after the injection. Some franchise owners come to this category from corporate careers, and lenders look hard at whether the owner will run the studio or hire a manager. See SBA Form 1919.
- Outside income. An owner who keeps a salary while the studio ramps can carry the gap, and SBA tests coverage globally at 1.0x including the owners' personal finances. A spouse's income and personal debts enter the same calculation. See global cash flow.
- The projections. Members or clients by month, pricing, staffing and rent, with enough working capital to reach break-even. Lenders discount a ramp that assumes the studio fills faster than the brand's other units did.
- The collateral. Most of the money goes into leasehold improvements, which are worth little to a lender if the studio closes. On larger loans that the business assets do not fully secure, SBA expects the lender to take available personal real estate as collateral. See personal residence collateral.
In a build-out loan, the lender's collateral is mostly walls and plumbing it cannot sell. The owner's liquidity and guarantee are the real support.
Franchises, memberships and the lease
Franchises were 27% of loans. Lenders confirm a brand's eligibility against SBA's franchise directory, read the franchise agreement for fees, royalties and territory, and use the brand's disclosure document to judge whether the projections are realistic. An owner opening several units under a development agreement should expect each unit to be treated as affiliated with the others for SBA purposes. See SBA affiliation rules.
Membership and prepaid-package revenue is steadier than walk-in revenue, which lenders like, but it cuts both ways. Cash collected for services not yet delivered is a liability on the balance sheet, and churn can quietly erode a membership base. Lenders want membership counts, cancellations and new sign-ups by month, not just revenue.
The lease matters as much as the loan. Most studios lease their space, and the lease should run at least as long as the loan, with renewal options, and allow the lender access to its collateral. Seasonal businesses such as tanning also need enough working capital to carry the slow months. For a studio in a building it can buy, SBA 504 financed 92 projects in this industry at a median of $387,000. See SBA 7(a) vs 504.
Licensing and eligibility questions
Personal care runs on individual licenses: massage therapists, estheticians, tattoo artists and electrologists are licensed by the state or locality, and some services, such as laser hair removal or injectables, may require a medical professional's supervision depending on the state. Lenders ask who holds each license, how the business would replace a key practitioner, and, where medical services are offered, how that oversight is structured.
Lenders also screen for eligibility. SBA does not finance businesses of a prurient sexual nature, so a massage business should expect to show that it is a licensed therapeutic practice. This is routine for established brands and independent studios alike, and a clear answer early keeps the file moving.
Buying an existing studio
Only 116 loans financed a change of ownership, 5.9% of the industry's loans against 10.4% nationally, at a median of $554,700 and 9.75%. Many businesses in the category are young, so there are fewer seasoned studios to buy. A franchise resale needs the franchisor's approval of the transfer and usually a new franchise agreement. See franchise resale financing and financing a salon acquisition.
SBA's rules apply as usual: an equity injection of at least 10% of total project costs; a seller note counts toward half of it only on full standby for the life of the loan; no earnout to the seller; a seller who may consult for up to 12 months, or up to 24 months for loans under SOP 50 10 8.1 from 1 October 2026, but not stay on as an employee; and from that date, financial due diligence on every change of ownership and debt service coverage of 1.25x on historical results. A buyer also inherits the prepaid memberships and packages, so the purchase price should account for services already paid for.
Preparing a personal care file
SBA's standard list applies: business tax returns for 2–3 years where the business has them, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule, personal tax returns and a personal financial statement for each owner of 20% or more, all of whom guarantee the loan, the owner's resume, and a business plan and use-of-proceeds narrative, which for a start-up is not optional in practice.
Add the franchise agreement and disclosure document if franchised, the lease or letter of intent for the space, contractor bids for the build-out, practitioner licenses, and, for an operating studio, monthly membership counts and cancellations. A studio carrying merchant cash advances should know SBA will not refinance an active advance. See refinancing cash advances for salons and spas.
Transparent builds the documents into a full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day, and places it with the 278 lenders in its book that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower. See the package.
Common questions
- Can I get an SBA loan to open a massage or waxing franchise?
- Yes. Start-ups were 41.6% of the industry's SBA loans and franchises 27%. Expect to inject at least 10% of total project costs, show management experience and liquidity, and provide the franchise agreement and a month-by-month ramp.
- Do I need to pledge my house for a spa loan?
- Possibly. A build-out loan is mostly secured by leasehold improvements, which carry little collateral value. On larger loans the business assets do not fully secure, SBA expects the lender to take available personal real estate as collateral.
- Can I keep my job while I open the studio?
- Some owners do, and the salary helps the global cash flow test. Lenders will want a named manager and a clear plan for who runs the studio day to day.
- What rate do personal care businesses get on SBA loans?
- The median rate at approval was 10.25%, the same as the national median, with the middle half between 9.5% and 11.25%. For current pricing see SBA loan rates.
- Are tattoo studios eligible for SBA loans?
- Tattoo and piercing studios fall in this industry code and are eligible like other personal care businesses. Lenders will ask about the artists' licenses and how the studio depends on individual artists.