From 1 October 2023 to 30 June 2026, 185 SBA lenders approved 5,619 7(a) loans in Pennsylvania worth $2.46 billion. The median loan was $150,000, level with the national $150,300, but the median rate at approval was 10.5%, above the national 10.25%, and a quarter of loans priced above 11.29%. Acquisitions were 11.3% of loans at a median of $604,500. Pennsylvania borrowers should use SBA for goodwill, a low down payment or a family transfer, and check every quote against SBA's rate caps before signing.
| Measure | Pennsylvania | All industries |
|---|---|---|
| SBA 7(a) loans approved | 5,619 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $450,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 11.8% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.29% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 634 (11.3%) | 16,849 (10.4%) |
| Median acquisition loan | $604,500 | $693,000 |
| Lenders that made these loans | 185 | 1,648 |
| SBA 504 loans (real estate, equipment) | 294 | 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
- 5,619, worth $2.46 billion (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $150,000 (national: $150,300)
- Median rate at approval
- 10.5% (national: 10.25%)
- Middle half of rates
- 9.5% to 11.29%
- Acquisition loans
- 634 (11.3%), median $604,500 at 9.5%
- SBA 504 loans
- 294, median $667,500
The same loan size, a higher price
Pennsylvania's median 7(a) loan, $150,000, is effectively the national median. Its rate is not. Half of Pennsylvania loans priced at 10.5% or more, against a national median of 10.25%, and the middle half of rates stretched from 9.5% to 11.29%. That upper bound is the number to notice: one Pennsylvania borrower in four paid 11.29% or more at approval. Only 8.2% of loans were fixed-rate, so almost all of those rates move with the base rate after closing.
| Measure | Pennsylvania | National | Reading |
|---|---|---|---|
| Median loan | $150,000 | $150,300 | Typical size is the national norm. |
| Median rate at approval | 10.5% | 10.25% | A quarter-point premium at the middle of the market. |
| Acquisitions share | 11.3% | 10.4% | More buying and selling of established companies than nationally. |
| Loans of $1 million or more | 663 (11.8%) | n/a | A real tier of large loans behind the modest median. |
| SBA Express share | 41.3% | n/a | Two loans in five went through the streamlined program. |
Why the premium? The approval data does not say, and loan size is not the whole answer: Pennsylvania's loan sizes look much like Michigan's, where rates sit at the national median. What size does set is the ceiling. 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 that. With 41.3% of loans in SBA Express and half of all loans at $150,000 or less, much of the Pennsylvania market sits in the two highest-cap tiers, where a lender has the most room over the base rate, and the wide upper band shows some lenders using it. A quarter-point sounds small; on 1,000 still owed it is 2.5 a year. The SBA loan rates page explains the caps, and a borrower should test any quote against them.
Larger loans priced lower: Pennsylvania's median acquisition loan, $604,500, priced at 9.5%, a full point below the state's median rate.
Restaurants, remodelers, landscapers and gyms
Pennsylvania's five largest SBA industries by loan count were full-service restaurants (271 loans), limited-service restaurants (204), residential remodelers (171), landscaping services (148) and fitness and recreational sports centers (140). Each comes with a Pennsylvania-specific question a lender will ask.
- Restaurants and the liquor license. Pennsylvania limits restaurant liquor licenses by a county quota, so licenses change hands between businesses and can carry real value in a sale. Transferring one to a buyer requires the state liquor control board's approval, and lenders treat that approval as a closing condition. They are also cautious about how much collateral value they give a license. See financing a restaurant acquisition.
- Remodelers and state registration. Pennsylvania requires home improvement contractors to register with the Attorney General's office. A lender financing a remodeler, or a buyer of one, will confirm the registration is current and understand how customer deposits are held and how warranty claims have run. Residential remodelers covers the industry.
- Landscapers and the winter. Revenue concentrates between spring and fall. Lenders want monthly figures to see whether payments are covered through the slow months, and whether snow removal fills them.
- Gyms and prepaid memberships. Membership fees paid in advance are cash the business owes back in service. Lenders read membership counts and attrition by month, the lease, and the age of the equipment. See financing a gym acquisition.
Family companies changing hands
Pennsylvania lenders approved 634 acquisition loans at a median of $604,500, four times the state's median loan. A sale to a child or another relative is a normal SBA purpose, but it triggers rules an arm's-length sale does not.
When buyer and seller are related, SBA requires an independent business valuation from a qualified appraiser whatever the loan size, and the loan for the purchase cannot exceed it. In an unrelated deal the valuation is required only where the amount financed, less appraised real estate and equipment, exceeds $250,000. In a complete change of ownership the seller may not stay on as an owner, officer or employee; the seller may consult for up to 12 months, and up to 24 months under SOP 50 10 8.1 for applications from 1 October 2026. A parent who wants to keep a title and a salary is describing a different deal: a partial sale, in which the parent keeps a share of the company and SBA applies separate rules. See financing a family business transfer, financing a partner buyout and SBA's valuation requirement.
Family sellers often carry part of the price. A seller note counts toward up to half of the buyer's 10% equity injection only if it sits on full standby, with no principal or interest paid, for the life of the SBA loan; interest may accrue and be paid after. A note that pays currently is allowed, but it is debt and counts in debt service. SBA also prohibits an earnout to the seller. Seller notes and the full-standby rule covers the mechanics.
From 1 October 2026 every change of ownership also needs financial due diligence, acquisitions of $3 million or more excluding real estate need a quality of earnings report, and the deal must show 1.25x debt service coverage on historical results. Family companies whose books were kept for tax purposes should expect the diligence to reach into how owner compensation and family payroll are recorded.
Buildings, 504 and the older industrial stock
Pennsylvania lenders made 294 SBA 504 loans at a median of $667,500. The 504 program finances owner-occupied real estate and long-life equipment, typically 50% from a bank, 40% from the CDC and 10% from the borrower, rising to 15% for a new business or special-purpose property and 20% for both. The borrower must occupy at least 51% of an existing building, or 60% of new construction. A 7(a) loan can also carry real estate for up to 25 years, which matters when a building is bought together with the business; SBA 7(a) vs SBA 504 compares the two.
Much of the state's owner-occupied property is older industrial and mixed-use stock. SBA requires lenders to investigate the environmental condition of real estate they take as collateral, and a former plant, a shop with a fuel tank or a building next to one often needs more than a desk review. Start that work early; an environmental finding late in the process is one of the few things that can stop a real estate deal outright.
SBA or conventional: four questions
| Question | If yes | If no |
|---|---|---|
| Is most of the price or the loan backed by goodwill rather than hard assets? | SBA 7(a): 10% minimum equity and a 10-year term for goodwill. | A conventional term loan may cost less and avoid SBA's guaranty fee. |
| Is the request above $5 million? | Conventional or private credit; senior cash-flow lenders commonly lend 2x to 3.5x EBITDA. | SBA remains available. |
| Does the business need a line that grows with receivables? | A conventional or asset-based line; lenders typically advance 80% to 90% of eligible receivables. | A term loan fits a fixed need. |
| Can the company show coverage of at least 1.25x without SBA's longer term? | Banks commonly look for that; conventional is realistic. | SBA's longer amortization may be what makes the payments fit. |
The 185 lenders active in Pennsylvania range from Express-only programs to lenders built for $1 million-plus acquisitions. SBA 7(a) vs a conventional acquisition loan and SBA 7(a) vs SBA Express help decide which door to knock on.
What a Pennsylvania file should hold
Start with the SBA core: two to three years of business tax returns, a P&L and balance sheet, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each 20%+ owner. Then add what a Pennsylvania lender will ask about:
- The liquor license, its status and the transfer application, for any restaurant or bar
- Current home improvement contractor registration, for a remodeler
- Monthly revenue and membership or seasonal data, for gyms and landscapers
- For a family transfer, the relationship between buyer and seller stated plainly, since it triggers the valuation
- For any acquisition, the target's latest full year of figures and the letter of intent
Transparent's lender book holds 1,800+ lenders, 278 of which write SBA 7(a) and 504, so a Pennsylvania request can be put in front of lenders whose box fits it rather than whichever is nearest. Once the documents are in, Transparent builds the 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. How we underwrite explains what lenders see first.
Common questions
- Why are SBA rates in Pennsylvania higher than the national median?
- The median Pennsylvania rate at approval was 10.5%, against 10.25% nationally, and a quarter of loans priced above 11.29%. Much of the market is small loans in SBA's higher-cap tiers, where lenders have more room over the base rate, and some use it. Size alone does not explain the gap: Michigan's loans are similar in size and priced at the national median. Larger loans priced lower: the median acquisition loan was 9.5%.
- Can an SBA loan help buy a Pennsylvania restaurant with a liquor license?
- Yes, the license can be part of what is purchased. The transfer needs the state liquor control board's approval, which lenders treat as a condition of closing, and they are usually cautious about how much collateral value they give the license itself.
- Can I buy my parents' business with an SBA loan?
- Yes. Because buyer and seller are related, SBA requires an independent business valuation whatever the loan size, and the loan cannot exceed it. In a complete change of ownership your parents cannot stay on as owners, officers or employees, though they may consult for up to 12 months, or up to 24 months from 1 October 2026.
- How many lenders make SBA loans in Pennsylvania?
- 185 lenders approved at least one Pennsylvania 7(a) loan between October 2023 and June 2026. They differ widely in the size, industry and structure they will take, which is why matching the file to the lender matters more than the lender's address.
- Is SBA Express enough for a Pennsylvania business?
- For a smaller need, often. Express loans go up to $500,000 with a 50% guaranty and made up 41.3% of Pennsylvania loans. An acquisition or anything larger usually goes through standard 7(a), where the guaranty is 75% above $150,000.