From 1 October 2023 to 30 June 2026, SBA lenders approved 1,490 7(a) loans in Puerto Rico worth $244 million. The median loan was $51,050, about a third of the national $150,300, and the median rate was 11%, above the national 10.25%. SBA Express carried 77.5% of loans, and only 11 lenders approved one. Acquisitions were 1.1% of loans. Physicians, therapists and pharmacies lead the count alongside restaurants. A Puerto Rico business needing a larger loan should expect a full 7(a) review, prepare for island-specific questions, and weigh 504 or a conventional lender beside it.
| Measure | Puerto Rico | All industries |
|---|---|---|
| SBA 7(a) loans approved | 1,490 | 162,355 |
| Median loan | $51,050 | $150,300 |
| Middle half of loans | $25,000 – $180,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 1.9% | 12.9% |
| Median rate at approval | 11% | 10.25% |
| Middle half of rates | 9.75% – 12.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 17 (1.1%) | 16,849 (10.4%) |
| Median acquisition loan | $250,000 | $693,000 |
| Lenders that made these loans | 11 | 1,648 |
| SBA 504 loans (real estate, equipment) | 171 | 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
- 1,490, worth $244 million (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $51,050 (national: $150,300)
- Median rate at approval
- 11% (national: 10.25%)
- SBA Express share
- 77.5% of loans
- Lenders that approved a loan
- 11
- SBA 504 loans
- 171, median $284,000
Many small loans from a short list of lenders
The shape of the Puerto Rico market is unlike most states'. Half of all 7(a) approvals were for less than $51,050. The middle half ran from $25,000 to $180,000, and only one loan in ten was above $344,160. Just 29 loans, 1.9% of the total, were for $1 million or more. The median loan still supported 6 jobs: these are working businesses with staff, borrowing modest sums.
| Measure | Puerto Rico | All states | What it suggests |
|---|---|---|---|
| Median 7(a) loan | $51,050 | $150,300 | Mostly small working-capital and equipment loans. |
| Median rate at approval | 11% | 10.25% | Small loans sit in SBA's wider rate tiers, and pricing follows. |
| Acquisitions as a share of loans | 1.1% | 10.4% | SBA is rarely used to buy a business here. |
Two numbers explain the rest. SBA Express, which runs up to $500,000 with a 50% guaranty and lets the lender use its own forms and credit process, carried 77.5% of loans. And only 11 lenders approved a Puerto Rico 7(a) loan in the whole period. The market is built around a small-loan product delivered by a few institutions.
Why rates run higher, and what that means for a larger loan
The median rate at approval was 11%, with the middle half from 9.75% to 12.25%, against a national median of 10.25%. Much of the gap is likely loan size. SBA caps a variable rate at the base rate plus 6.5% for loans of $50,000 or less and plus 6% from $50,001 to $250,000; the Puerto Rico median sits just inside the second tier. Above $350,000 the cap falls to the base rate plus 3%. A larger, well-documented loan should price differently from the island's typical one, and 20.6% of Puerto Rico loans carried a fixed rate, so fixed pricing is available from some lenders. See SBA loan rates for the caps across sizes.
The harder issue is who will make the larger loan. Express caps at $500,000 and carries only a 50% guaranty, so a lender making one is keeping half the risk on a lighter review. Above that, or for an acquisition or a building, the request goes through standard 7(a), with an 85% guaranty on loans of $150,000 or less and 75% above, a full credit memo and SBA's full eligibility review. With only 29 loans of $1 million or more in the period, a large request is not routine for the island's lenders. SBA lenders based on the mainland can lend in Puerto Rico, and some will, but a borrower has to find the ones whose credit box includes it. SBA 7(a) vs SBA Express and preferred vs standard SBA lenders explain the difference in process.
Healthcare leads the count
By loan count, the top industries were offices of physicians (107 loans), full-service restaurants (98), offices of physical, occupational and speech therapists and audiologists (55), pharmacies and drug retailers (50) and limited-service restaurants (38). Three of the five are healthcare, and lenders read a practice differently from a restaurant.
- Who pays, and how fast. A practice's revenue comes mostly from insurers and government health plans, not patients. A lender will want the payer mix, the claims aging and the collection lag, because a plan that slows payment slows the practice's cash. A practice that has struggled with slow claims may be better served by a line of credit against receivables than a term loan alone.
- The license is the business. A physician or therapy practice cannot bill without its licensed providers. Lenders ask who they are, whether they own part of the practice or are employed, and what happens if one leaves. In a practice sale, the transition of patients and payer contracts to the new owner is the heart of the credit.
- Pharmacies run on inventory and reimbursement. A lender will read the inventory, the pharmacy's permits and its contracts with the plans that pay for prescriptions, and will watch the margin between what the pharmacy pays for a drug and what it is reimbursed.
The data pages for physician offices, therapy practices and pharmacies show how these industries borrow nationally, and financing a medical practice acquisition covers a purchase.
Island questions a lender will ask
SBA's rules are the same in Puerto Rico as in any state. The file raises questions a mainland file does not, and a lender, especially one based off the island, will ask them. Answer them before the lender does.
| Issue | What the lender wants to know | How to prepare |
|---|---|---|
| Tax returns filed with Hacienda | SBA lenders normally verify returns against an IRS transcript. Income reported only in Puerto Rico may not have one. | Provide the filed Hacienda returns with proof of filing, and ask the lender early how it will verify them. |
| Documents in Spanish | Whether the credit team can read the leases, contracts and corporate records. | Have key documents translated, or confirm the lender's team works in Spanish. |
| Power and storms | How the business kept operating through outages and past hurricanes, and what insurance covers now. | Show backup generation, current property and flood coverage where required, and monthly results through past disruptions. |
| Marital property | Puerto Rico's default marital regime is a community of property, so a spouse may need to consent or sign. | Identify married guarantors at the start; see spouse personal guarantees. |
| Tax incentive decree | Whether after-tax cash flow depends on a decree, and when it expires. | Include the decree and its terms in the file. |
Buying a business in Puerto Rico
Only 17 Puerto Rico 7(a) loans financed a change of ownership, 1.1% of the total, at a median of $250,000 and a median rate of 8.25%. Owners here sell businesses, of course; they rarely sell them with SBA financing. That leaves a buyer with fewer lenders who have done it locally and more reason to build the file carefully.
The rules are federal. A complete change of ownership needs an equity injection of at least 10% of total project costs. A seller note can supply up to half of it only if it sits on full standby for the life of the SBA loan; see seller notes and SBA's full-standby rule. The seller may not stay on as an owner, officer or employee, and may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. SBA prohibits an earnout to the seller. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, an independent business valuation is required and caps the loan. From 1 October 2026, a change of ownership also needs 1.25x debt service coverage on historical results and financial due diligence.
Lenders want the target's latest full year of figures, never an older year, and the letter of intent. For a practice, add the provider roster and payer contracts. What lenders need to finance an acquisition lists the rest.
504, conventional, and building the file
Puerto Rico's 171 SBA 504 loans, at a median of $284,000, are a healthy count beside the 7(a) figures. A practice or pharmacy that occupies its own building can use 504, typically 50% from a bank, 40% from a CDC and 10% from the borrower, provided it occupies at least 51% of an existing building. SBA 7(a) vs SBA 504 compares the two. For a business with strong earnings and collateral, a conventional bank that commonly looks for 1.25x coverage may offer a simpler loan without SBA's eligibility review.
The core SBA file: two to three years of business and personal tax returns, a P&L and balance sheet, a debt schedule with copies of notes being refinanced, and a personal financial statement for each 20%+ owner. Transparent's lender book holds 1,800+ lenders, 278 of which write SBA 7(a) and 504, which matters in a market where 11 lenders made every Puerto Rico 7(a) loan in the period. Once documents are in, Transparent builds the full lender package, a financing model, lender presentation, blind teaser and underwriting memo, in a day. Transparent charges nothing before a loan closes; on SBA loans the lender pays Transparent, not the borrower.
Common questions
- What is the typical SBA loan size in Puerto Rico?
- The median 7(a) loan approved from October 2023 to June 2026 was $51,050, about a third of the national median of $150,300. The middle half ran from $25,000 to $180,000.
- Why are SBA rates higher in Puerto Rico?
- Largely because the loans are small. SBA allows a wider spread over the base rate on smaller loans, and the median Puerto Rico loan sits in the tier capped at the base rate plus 6%. The median rate at approval was 11% against 10.25% nationally.
- Can a mainland SBA lender make a loan in Puerto Rico?
- Yes, SBA lending is available in Puerto Rico and some mainland lenders make loans there. Whether a particular lender will depends on its own credit box, so the search matters more than usual.
- How do lenders verify tax returns filed with Hacienda?
- SBA lenders normally check returns against an IRS transcript. Where income is reported only to Hacienda, expect the lender to verify the Puerto Rico returns another way; provide them with proof of filing and ask early.
- Can I buy a medical practice in Puerto Rico with an SBA loan?
- Yes, the standard 7(a) acquisition rules apply. Only 17 Puerto Rico SBA loans financed a change of ownership in the period, so expect the lender to focus on how providers, patients and payer contracts transfer to the new owner.