Sporting and recreational goods wholesalers took 229 SBA 7(a) loans from October 2023 to June 2026, about $98 million from 91 lenders, at a median of $150,000 and a median rate of 10.5%, against $150,300 and 10.25% nationally. The spread is wide: the middle half ran from $50,000 to $500,000, and 12.2% of loans were $1 million or more. Lenders look at the brand lines the distributor holds and whether they can be pulled, at the seasonal inventory build, and at dealer concentration. For recurring stock and receivables, a borrowing-base line often does more than a term loan.
| Measure | Sporting and Recreational Goods and Supplies Merchant Wholesalers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 229 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 12.2% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.49% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 22 (9.6%) | 16,849 (10.4%) |
| Median acquisition loan | $572,400 | $693,000 |
| Lenders that made these loans | 91 | 1,648 |
| SBA 504 loans (real estate, equipment) | 16 | 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
- 229 from 91 lenders (Oct 2023 – Jun 2026)
- Median loan
- $150,000 (national $150,300)
- Middle half of loans
- $50,000 to $500,000
- Median rate at approval
- 10.5% (national 10.25%)
- Acquisitions
- 22 loans (9.6%), median $572,400
- SBA 504
- 16 projects, median $1,065,500
Two kinds of borrower under one code
NAICS 423910 covers merchant wholesalers of sporting and recreational goods: fishing tackle, hunting and shooting supplies, camping and outdoor gear, team sports equipment, fitness equipment, bicycles, pool supplies and similar lines, sold to dealers, specialty shops, schools and teams. From FY2024 through June 2026 these wholesalers took 229 SBA 7(a) loans worth $97,584,500 from 91 lenders.
The median of $150,000 hides two populations. The bottom quarter of loans was $50,000 or less, the size of need a small importer, online seller or single-line distributor has. The top quarter started at $500,000, the 90th percentile was $1,060,400, and 28 loans, 12.2%, were $1 million or more: established distributors with a warehouse, a sales force and dealer accounts across a region. The two are underwritten very differently.
| Figure | Sporting goods wholesalers | What it tells you |
|---|---|---|
| Median loan | $150,000 | Level with the national $150,300 |
| Middle half of loans | $50,000 to $500,000 | Small importers at one end, regional distributors at the other |
| 90th percentile | $1,060,400 | Warehouse-scale distributors |
| Median rate at approval | 10.5% (middle half 9.5% to 11.49%) | A quarter point over the national 10.25% |
| Fixed-rate share | 8.7% | Almost all loans float |
| SBA Express | 37.1% of loans | Smaller inventory and working capital needs |
| Acquisitions | 22 loans (9.6%), median $572,400 at 9.5% | Close to the national 10.4%, at larger sizes |
| Start-ups | 5.2% of loans | Distribution rarely starts from scratch on SBA money |
| SBA 504 | 16 projects, median $1,065,500 | Owner-occupied warehouses |
The brand lines are the franchise
A distributor's value rests on the manufacturers whose goods it is allowed to sell, in which territories, and on what terms. Many of those arrangements are short, non-exclusive, or cancellable on notice. A lender reading a sporting goods distributor asks first which lines produce most of the gross profit and what would happen if the largest were pulled or taken direct. A distributor whose top line brings most of its margin under a one-year agreement carries a risk that no amount of inventory offsets.
Product categories add their own questions. Firearms lines need a federal firearms license and careful record-keeping, and some lenders have their own policies on the category. Outdoor and seasonal sports gear depends on weather and on consumer spending that swings with the economy. Fitness and bicycle lines have seen demand surge and fall back, leaving some distributors with stock bought at the top.
Show the lender gross profit by brand line and the term of each distribution agreement; that one schedule answers the question the lender cares about most.
Seasonal stock and slow-paying dealers
Sporting goods sell by season: spring for fishing, team sports and bikes, fall for hunting, winter for snow sports. Distributors commit to orders, often overseas with deposits, months before the season, then ship to dealers who ask for extended terms and pay after they sell. The cash low point comes just before the season opens, with the warehouse full and receivables not yet due. A term loan sized to annual earnings does not solve a gap that opens and closes every year.
That is what an asset-based line is for. Asset-based lenders typically advance 80% to 90% of eligible receivables, exclude invoices more than 90 days past invoice date, and commonly cap any single customer at 20% to 25% of eligible receivables. Inventory typically advances at up to 85% of net orderly liquidation value, or roughly half of cost. Extended dealer terms can push receivables past 90 days and out of the borrowing base, and dating programs deserve a conversation with the lender before the line is set. So does dealer concentration: a distributor that sells heavily to one chain or buying group will see the balance above the cap left out of the base, and a term lender will ask what happens if that account moves. See customer concentration. SBA's own revolving product, CAPLines, is an option for some distributors. See lines of credit for wholesale distributors, SBA CAPLines and seasonal lines.
| Need | Usual fit | Why |
|---|---|---|
| Pre-season inventory build | Revolving line with an inventory component | Borrowed and repaid within the season |
| Dealer receivables on extended terms | Borrowing base on receivables | Grows with sales; watch the 90-day cutoff |
| Deposits on overseas orders | Letters of credit under a revolver, or purchase-order finance | Funds the supplier before goods exist |
| Warehouse purchase | SBA 504 or 7(a) real estate loan | Long maturity on a long-lived asset |
| Buying a distributor | SBA 7(a), often alongside a line | Goodwill and equipment on the term loan, working capital on the line |
Buying a distributor
Acquisitions were 22 loans, 9.6% of the total, at a median of $572,400 and 9.5%, nearly four times the industry's median loan. Distribution purchases carry inventory and receivables as well as goodwill, and the price depends on what working capital comes with the business.
- Agree how much inventory and receivables transfer at closing, and exclude aged or discontinued stock. See working capital pegs.
- Get the key manufacturers to confirm they will keep supplying the business under its new owner. A line that lapses on a change of control is a hole in the earnings the lender underwrote. See change-of-control consents.
- SBA requires at least 10% of total project costs as equity; a seller note counts toward half of it only on full standby for the life of the SBA loan. SBA prohibits an earnout to the seller.
- Where the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation, and the purchase loan cannot exceed it.
- From 1 October 2026, a change of ownership must show 1.25x debt service coverage on historical results, needs financial due diligence, and needs a quality of earnings report if the acquisition is $3 million or more excluding real estate.
The seller may not stay on as an owner, officer or employee, but may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. In distribution, the manufacturer and dealer introductions made in that period are much of what the buyer is paying for.
Warehouses and the 504 program
The 504 program financed 16 projects at a median of $1,065,500, distributors buying or building their warehouse. A 504 loan typically splits the project 50% bank, 40% CDC and 10% borrower, and the borrower must occupy at least 51% of an existing building, or 60% of new construction. A distributor that plans to grow into a larger building can lease out the surplus space as long as it meets that test. See SBA 7(a) vs 504.
Preparing a distributor's file
The SBA list: 2–3 years of business tax returns, a P&L and balance sheet with a year-to-date P&L through last month-end, a debt schedule with copies of notes being refinanced, and personal tax returns and a personal financial statement for each owner of 20% or more, with the owner's resume for Form 1919. A line of credit adds an AR aging by customer with days outstanding, an AP aging, an inventory report, and the existing liens.
Add gross profit by brand line, copies of the main distribution agreements, sales by month for two years to show the seasons, and a dealer list with balances. Transparent builds the file into a full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day once the documents are in, and can take it to the 278 lenders in its book that write SBA 7(a) and 504 or the 235 that write asset-based loans and lines. On SBA loans the lender pays Transparent, not the borrower. See the package.
Common questions
- Can a sporting goods distributor use an SBA loan for inventory?
- Yes, but for stock that turns every season a revolving line usually fits better than a term loan. Inventory typically advances at up to 85% of net orderly liquidation value, or roughly half of cost, alongside 80% to 90% of eligible receivables.
- What rate do sporting goods wholesalers pay on SBA loans?
- The median rate at approval from October 2023 to June 2026 was 10.5%, with the middle half from 9.5% to 11.49%, against a national median of 10.25%. Acquisition loans had a median of 9.5%.
- Do lenders care which brands I distribute?
- Very much. The lender wants to know which lines produce your gross profit, how long each agreement runs and whether a manufacturer could go direct. A distributor dependent on one line under a short agreement is a harder file.
- How big are SBA loans to buy a sporting goods distributor?
- Purchases had a median SBA loan of $572,400 in the period. Buyers put in at least 10% of total project costs, and the key manufacturers should confirm they will keep supplying the business.