From 1 October 2023 to 30 June 2026, 51 SBA lenders approved 426 7(a) loans in Vermont worth $116.9 million. The median loan was $60,000 against a national median of $150,300, and 66% of loans were SBA Express. The median rate at approval was 9.99%, below the national 10.25%. Acquisitions made up 9.2% of loans, at a median of $358,000 and a median rate of 9%. Vermont borrowers should use Express for small equipment and working-capital needs, a standard 7(a) loan for acquisitions and start-ups, and weigh equipment finance or a seasonal line where those fit better.
| Measure | Vermont | All industries |
|---|---|---|
| SBA 7(a) loans approved | 426 | 162,355 |
| Median loan | $60,000 | $150,300 |
| Middle half of loans | $25,000 – $200,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 7.3% | 12.9% |
| Median rate at approval | 9.99% | 10.25% |
| Middle half of rates | 8.28% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 39 (9.2%) | 16,849 (10.4%) |
| Median acquisition loan | $358,000 | $693,000 |
| Lenders that made these loans | 51 | 1,648 |
| SBA 504 loans (real estate, equipment) | 43 | 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
- 426 (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $60,000 (national: $150,300)
- SBA Express share
- 66% of loans
- Median rate at approval
- 9.99%, middle half 8.28% to 11.25%
- Acquisition loans
- 39 (9.2%), median $358,000 at 9%
- SBA 504 loans
- 43, median $361,000
An Express market of very small employers
SBA Express made up 66% of Vermont's 7(a) approvals, and the loan sizes follow from that. The median loan was $60,000, the middle half ran from $25,000 to $200,000, and one loan in ten exceeded $503,800, just above the $500,000 Express limit. Thirty-one loans, 7.3% of the total, reached $1 million or more. The median loan supported 2 jobs. This is lending to owner-operators and small crews: a landscaper's second truck, a remodeler's working capital, an excavator for a site contractor.
| Measure | Vermont | All states | What it tells a borrower |
|---|---|---|---|
| Median 7(a) loan | $60,000 | $150,300 | Most requests are small enough to be decided on a lender's own Express forms. |
| Median rate at approval | 9.99% | 10.25% | Slightly cheaper, but the middle half is wide: 8.28% to 11.25%. |
| Acquisitions as a share of loans | 9.2% | 10.4% | Close to the national share, with smaller deals. |
| Start-ups as a share of loans | 8.9% | — | Most borrowers have a trading history; franchises were only 2.1%. |
The wide rate band is worth a second look. Express lenders price within SBA's caps, which allow the base rate plus 6.5% on loans of $50,000 or less and plus 6% up to $250,000, so two Vermont borrowers with similar loans can pay quite different rates depending on the lender and the credit. Only 26.8% of loans were fixed-rate. The SBA loan rates page sets out the caps by tier.
Landscapers, site contractors and builders
By loan count, the top industries were landscaping services (23 loans), full-service restaurants (21), residential remodelers (15), site preparation contractors (12) and new single-family housing construction (10). Four of the five are outdoor or building trades. Each carries its own underwriting questions.
- Landscaping. Revenue can fall close to zero in winter unless the company plows snow. A lender will want to see how the winter months are covered, whether plowing contracts exist and whether they renew. See SBA loans for landscaping services.
- Site preparation. These businesses own heavy equipment, which is collateral, and depend on a pipeline of permitted projects. In Vermont, larger developments go through the state's Act 250 land-use review, so a site contractor's backlog can depend on permits that have not yet been issued. A lender will ask which jobs are permitted and which are not. See SBA loans for site preparation contractors.
- Remodelers and home builders. Revenue arrives in deposits and draws, and a single job can be a large share of a year. Lenders look at the job list, deposits held against work not yet done, and whether the business has ever had a job go badly over budget. See SBA loans for residential remodelers and SBA loans for home builders.
For equipment-heavy trades, the first comparison is often not SBA against a bank term loan but SBA against equipment finance. An equipment loan is secured by the machine and usually needs no lien on the rest of the business; a 7(a) loan can finance equipment for up to 10 years, or 15 if its useful life supports it, but takes a broader lien and personal guarantees from every 20% owner. Equipment financing vs SBA 7(a) weighs them.
Winter, mud season and the cash cycle
Vermont businesses run on two short seasons: the building and landscaping months, and for tourism businesses, the ski season and fall foliage. Between them come stretches, including mud season in spring, when revenue drops and the loan payment does not. SBA requires debt service coverage of at least 1.15x, and 1.0x globally including the owners' personal income and debts, but a lender measuring an annual figure will still ask how the business pays in March.
Two tools address the gap. A term loan sized on annual cash flow can carry a payment the slow months still cover; and a revolving line, drawn in the lean months and repaid in the busy ones, keeps the term loan from being stretched to fund working capital. SBA has its own line program for seasonal and contract needs. Seasonal lines of credit and SBA CAPLines explain both, and lines of credit for landscaping companies covers that trade.
Show two full years of revenue by month. A Vermont P&L read only as an annual total hides the months a lender cares about most.
Acquisitions right at the $350,000 line
Vermont lenders approved 39 acquisition loans, 9.2% of the total, at a median of $358,000 and a median rate of 9%. That median sits just above $350,000, the point where SBA's cap on a variable rate drops from the base rate plus 4.5% to plus 3%. A buyer whose loan lands just below the line is in a tier where SBA allows a wider spread; it is worth knowing where the line is when the purchase price and the equity are still being set, though the rate a lender offers depends on the credit, not the cap alone.
Smaller acquisitions still carry every change-of-ownership rule:
- The buyer injects at least 10% of total project costs. A seller note counts for up to half of that only on full standby, with no principal or interest paid, for the life of the SBA loan. See equity injection in a business acquisition.
- The seller cannot stay 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 a business of a few people, where the owner holds the customer relationships, that window is the handover.
- If the amount financed, less appraised real estate and equipment, exceeds $250,000, SBA requires an independent business valuation. At the Vermont median, the equipment in a trades business can decide whether the valuation is needed.
- From 1 October 2026, every change of ownership needs financial due diligence and must show 1.25x coverage on historical results.
Financing a landscaping company acquisition and buying a business from a retiring owner go further.
Real estate, 504 and conventional debt
Vermont recorded 43 SBA 504 loans at a median of $361,000, a modest count beside 426 7(a) loans; many trades businesses run from a rented yard or the owner's own land rather than a building they would buy. 504 finances owner-occupied real estate and long-life equipment, typically 50% from a bank, 40% from a certified development company and 10% from the borrower, and the business must occupy at least 51% of an existing building. SBA 7(a) vs SBA 504 compares it with 7(a), which can finance real estate over up to 25 years.
| Need | Usually fits | Why |
|---|---|---|
| A truck, mower or small machine | Equipment loan or SBA Express | Secured by the asset; Express goes up to $500,000 with a 50% guaranty. |
| Winter working capital | Seasonal line of credit | Draws in the slow months, repaid in the busy ones. |
| Buying a business | Standard SBA 7(a) | Goodwill over 10 years with a 10% minimum injection. |
| A shop, yard or building the business occupies | 504, or 7(a) over up to 25 years | Owner-occupied real estate with a small down payment. |
| An established company with hard assets and steady earnings | Conventional term loan | No guaranty fee; conventional bank lenders commonly look for 1.25x coverage. |
What a Vermont file should carry
Fifty-one lenders approved Vermont loans. An Express lender works largely from its own application and credit policy, though it will still want tax returns and financial statements. For a standard 7(a) loan, the SBA list applies: two to three years of business and personal tax returns, a P&L, a year-to-date P&L through last month-end, a balance sheet, a debt schedule with copies of notes being refinanced, and a personal financial statement for each 20%+ owner. A Vermont file should add monthly revenue for two years, an equipment list showing what is owned and what is financed, and, for contractors, the current job list with permit status. For an acquisition, add the target's latest full year of figures and the letter of intent.
Transparent's lender book holds 1,800+ lenders: 278 write SBA 7(a) and 504, 244 write equipment and 235 write asset-based loans and lines, so a Vermont request can be compared across the routes above rather than forced into one. Transparent charges nothing before a loan closes, and on SBA loans the lender pays Transparent, not the borrower.
Common questions
- What is the typical SBA loan size in Vermont?
- The median Vermont 7(a) loan approved from October 2023 to June 2026 was $60,000, against $150,300 nationally. The middle half ran from $25,000 to $200,000. Acquisition loans had a median of $358,000.
- Why are most Vermont SBA loans Express loans?
- SBA Express made up 66% of approvals because most Vermont requests are small. Express covers loans up to $500,000, which the lender decides on its own forms in exchange for a 50% guaranty.
- Can a seasonal Vermont business get an SBA loan?
- Yes, provided the file shows how the slow months are covered. Lenders look at monthly revenue across at least two years, and a seasonal line of credit often sits alongside the term loan to fund the gap.
- What rate do Vermont SBA borrowers pay?
- The median rate at approval was 9.99%, with the middle half from 8.28% to 11.25%. Acquisition loans priced at a median of 9%. Smaller loans fall under wider SBA rate caps, so the rate depends heavily on loan size and lender.
- Should a Vermont contractor use SBA or equipment financing for machinery?
- It depends on the rest of the balance sheet. Equipment finance is secured by the machine alone; a 7(a) loan takes a broader lien and personal guarantees but can combine equipment with working capital or an acquisition in one loan.