SBA lenders approved 575 7(a) loans to sporting goods retailers from October 2023 to June 2026, about $206 million from 191 lenders, at a median of $150,000 and a median rate of 10.25%, the same as the national median. Acquisitions stand out at 15.5% of loans, against 10.4% nationally, with a median of $413,000. Lenders decide on cash flow across the whole year rather than the peak season, on inventory they discount heavily, and on how the store handles licensed products such as firearms and school or league orders.
| Measure | Sporting Goods Retailers | All industries |
|---|---|---|
| SBA 7(a) loans approved | 575 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $358,050 | $50,000 – $500,000 |
| Loans of $1 million or more | 8% | 12.9% |
| Median rate at approval | 10.25% | 10.25% |
| Middle half of rates | 9.42% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 89 (15.5%) | 16,849 (10.4%) |
| Median acquisition loan | $413,000 | $693,000 |
| Lenders that made these loans | 191 | 1,648 |
| SBA 504 loans (real estate, equipment) | 47 | 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
- 575 (Oct 2023 – Jun 2026)
- Lenders that approved one
- 191
- Median loan / rate
- $150,000 at 10.25%
- SBA Express share
- 37.4%
- Acquisitions
- 89 loans (15.5%), median $413,000 at 9.5%
- SBA 504 loans
- 47, median $613,000
What the approvals show
Sporting goods retailers (NAICS 459110) took 575 SBA 7(a) loans worth $205,843,400 from FY2024 through June 2026. The loans came from 191 lenders, a broad market for a retail trade of this size, and pricing matched the country: a median rate of 10.25%, with the middle half between 9.42% and 11.25%. The median loan was $150,000, and the middle half ran from $50,000 to $358,050. Only 46 loans (8%) reached $1 million.
Two figures describe how these stores borrow. SBA Express loans, which go up to $500,000 on the lender's own credit process, were 37.4% of approvals: working capital, fixtures and inventory for stores already open. And start-ups took 14.3% of loans, a real share for retail, where lenders usually want a trading history. Franchised stores were 7.5%. See SBA 7(a) vs SBA Express.
Inventory is the business, and lenders discount it
A sporting goods store's balance sheet is mostly stock, and much of it is seasonal: preseason orders for hunting, fishing, team sports, water or winter gear placed months ahead, paid for before or while they sell. Lenders take inventory as collateral, but they count it at what it would fetch in an orderly sale, not at cost. Asset-based lenders typically advance up to 85% of net orderly liquidation value, or roughly half of cost, and less for stock that has sat through a season.
| Inventory | How a lender tends to see it |
|---|---|
| Current-season stock in brands with steady demand | The best collateral in the store, still discounted to liquidation value |
| Stock carried over from a past season | Worth much less; a rising share suggests over-buying or markdowns to come |
| Firearms and ammunition | Saleable, but only through licensed channels, which limits who can buy it in a liquidation |
| Printed team uniforms and special orders | Close to worthless to anyone but the customer who ordered them |
| Used or consigned gear | Consigned goods belong to someone else and are excluded; used stock is hard to value |
That discount is why lenders size SBA loans to cash flow rather than to inventory, and why a clean inventory report by category and age helps: it shows the stock turns. See inventory advance rates.
Seasons and the shape of cash flow
An SBA loan is paid monthly, and a sporting goods store earns unevenly. A store that makes most of its profit in a few months still owes the same payment in its slowest ones. Lenders test debt service coverage on the full year, at least 1.15x under SBA rules and 1.0x globally with the owners, and then look at the monthly pattern to see whether the store can reach its low point without strain.
Where the store's need for cash swings with its buying seasons, a line of credit that rises with preseason orders and is paid down after the season is a better fit than stretching a term loan. See seasonal lines of credit.
Stores that have covered slow months with a merchant cash advance face a specific rule: SBA will not refinance an active advance. From 1 October 2026 an advance becomes eligible only once converted to a term loan that has amortized for at least 24 months with no new advance since. Other debt can be refinanced with a 7(a) loan if the new payment is at least 10% lower and the debt has been current for the last 12 months. See refinancing cash advances for retailers and MCA refinance.
Firearms, team sales and the online channel
- Firearms. A store that sells firearms operates under a federal license held by the licensee. Lenders ask for it, and in a purchase they ask how the buyer will be licensed at closing, because the store cannot sell that part of its stock without one.
- Team and school business. Uniform and equipment orders from schools, leagues and clubs bring purchase orders and receivables, which retail stores rarely carry. Lenders ask who the accounts are, how long they have ordered and how quickly they pay. Large orders may suit purchase order financing.
- Online sales. A web channel can widen the market, but lenders want its revenue and margin shown separately, and they read heavy discounting as competition rather than growth.
- Vendor terms. Preseason dating from suppliers is a form of financing. Lenders read the AP aging to see whether the store pays on those terms or stretches past them.
Buying a sporting goods store
Changes of ownership were 15.5% of this industry's loans, half again the national share, at a median of $413,000 and a median rate of 9.5%. That median is small next to many industries' acquisitions, and it reflects what is being bought: a store's inventory, fixtures and customer following, often in leased premises.
The inventory is where the price needs care. Lenders expect a physical count near closing, valued at cost with old and damaged stock written down, and a purchase agreement that adjusts the price to the count. Paying full price for stale stock is a common and avoidable mistake in a retail purchase. See financing a sporting goods store acquisition and working capital at close.
SBA's acquisition rules apply. The buyer injects at least 10% of total project costs, a seller note can count for up to half of that, and only on full standby for the life of the SBA loan, and 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. The seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. From 1 October 2026 every change of ownership also needs financial due diligence and 1.25x coverage on historical results.
Owners who buy their building use SBA 504 as well: the industry took 47 504 loans at a median of $613,000. 504 finances owner-occupied real estate, typically 50% from a bank, 40% from the CDC and 10% from the borrower. See SBA 7(a) vs 504.
Preparing a store's file
SBA's list: business tax returns for 2–3 years, 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. A buyer adds the store's latest full year of figures and the letter of intent.
For a sporting goods store, add monthly sales for two or three years so the lender can see the seasons, an inventory report by category and age, open preseason orders, the store lease, any firearms license, and a list of team or school accounts with balances owed.
Show the lender the slowest month of the year and how the store got through it. That is the question the monthly figures are there to answer.
Transparent builds the full lender package — financing model, lender presentation, blind teaser and underwriting memo — in a day, and takes it to the 278 lenders in its book that write SBA 7(a) and 504. On SBA loans the lender pays Transparent, not the borrower. For related trades, see sporting goods wholesalers and hobby, toy and game retailers.
Common questions
- Can I use an SBA loan to buy inventory for the season?
- Yes. 7(a) proceeds can fund inventory and working capital over up to 10 years. For needs that rise and fall each season, lenders often suggest a line of credit alongside or instead.
- How do lenders value a store's inventory in a purchase?
- At cost from a physical count near closing, with old or damaged stock written down. As collateral they count it lower still, at liquidation value.
- Does selling firearms stop a store from getting an SBA loan?
- Not under SBA's rules, though some lenders decline the category by their own policy. Those that lend ask for the federal firearms license and, in a purchase, how the new owner will be licensed at closing so that stock can keep selling.
- Are sporting goods start-ups financed by SBA lenders?
- Some are: start-ups were 14.3% of this industry's loans. Expect to show retail or industry experience, a site and lease, and at least 10% of total project costs as equity.