From 1 October 2023 to 30 June 2026, SBA lenders approved 2,948 7(a) loans in Virginia worth $1.49 billion. The median loan was $200,000, above the national $150,300, at a median rate of 10.5%, a quarter point over the national 10.25%. Start-ups took 23.2% of loans and franchises 17.6%. Acquisitions were 10.1% of loans, close to the national 10.4%, at a median of $700,000 and 9.75%. An established Virginia company or buyer should look for lenders that underwrite history rather than projections, and compare SBA with a conventional loan.
| Measure | Virginia | All industries |
|---|---|---|
| SBA 7(a) loans approved | 2,948 | 162,355 |
| Median loan | $200,000 | $150,300 |
| Middle half of loans | $80,000 – $500,000 | $50,000 – $500,000 |
| Loans of $1 million or more | 12.5% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.5% – 11.25% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 297 (10.1%) | 16,849 (10.4%) |
| Median acquisition loan | $700,000 | $693,000 |
| Lenders that made these loans | 174 | 1,648 |
| SBA 504 loans (real estate, equipment) | 295 | 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
- 2,948 worth $1.49 billion (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $200,000 (national: $150,300)
- Median rate at approval
- 10.5% (national: 10.25%)
- Start-ups / franchises
- 23.2% / 17.6% of loans
- Acquisition loans
- 297 (10.1%), median $700,000 at 9.75%
- SBA 504 loans
- 295, median $489,000
Virginia against the national figures
Virginia's median 7(a) loan was $200,000, a third larger than the national median, and the middle half ran from $80,000 to $500,000. One loan in ten was above $1,262,200, and 369 loans, 12.5% of the total, reached $1 million. 174 lenders approved at least one Virginia loan, and the median loan supported 6 jobs.
| Measure | Virginia | All states | What it suggests |
|---|---|---|---|
| Median 7(a) loan | $200,000 | $150,300 | Larger than typical, with franchise and start-up projects prominent. |
| Median rate at approval | 10.5% | 10.25% | A quarter point above the national median. |
| Acquisitions as a share of loans | 10.1% | 10.4% | A typical share of change-of-ownership deals. |
| Median acquisition loan | $700,000 at 9.75% | Not reported | Mostly in the tightest rate-cap tier, and priced lower. |
Loan size is part of the rate picture. SBA caps a variable rate at the base rate plus 6% for loans from $50,001 to $250,000, where the Virginia median sits, and at plus 3% above $350,000, where most acquisition loans sit. The middle half of Virginia loans priced between 9.5% and 11.25%, and only 9.7% were fixed-rate. SBA loan rates sets out the tiers. SBA Express, capped at $500,000 with a 50% guaranty, made up 30% of approvals.
A start-up and franchise market
Start-ups took 23.2% of Virginia 7(a) loans and franchises 17.6%. The top industries by loan count point the same way: full-service restaurants (150 loans), limited-service restaurants (116), fitness and recreational sports centers (74), child care services (59) and residential remodelers (57). Much of that is likely new units of consumer concepts.
For a start-up, SBA requires equity of at least 10% of total project costs, and lenders decide on three things: that injection, the operator's relevant experience, and a projection they find credible. A franchise brand must also be eligible under SBA's rules, which lenders check first. The owner's resume matters here in a way it does not for an established company, because it supports the management-experience answers on SBA Form 1919.
Why should an established company care? Because lenders who do a lot of start-up and franchise lending build their process around projections, brand data and operator experience. An established Virginia manufacturer, distributor or services firm with years of returns is better read by a lender that underwrites historical cash flow, adjusts for owner compensation and add-backs, and lends against goodwill with confidence. The same file can get a hesitant answer from one lender and a straightforward one from another.
Before sending a file, ask a lender what share of its SBA loans go to start-ups and what share to established companies and acquisitions.
Child care: licensing, enrollment and staff
Child care services ranked fourth by loan count in Virginia, with 59 loans. Lenders finance child care centers regularly, but the file has to answer questions no other industry raises:
- The license. A Virginia center operates under a state license tied to the operator and the premises, and a license generally does not pass to a buyer on its own: the new owner applies. Lenders want to see that application planned so there is no gap in which the center cannot operate.
- Enrollment and capacity. Revenue is enrollment times tuition, capped by licensed capacity and staff ratios. Lenders ask for enrollment by age group and the waiting list, not just annual revenue.
- Subsidy share. Where a meaningful part of tuition comes from public subsidy programs, lenders look at how reliable and how timely those payments are.
- Staffing. Ratios mean staff turnover directly caps revenue. The director's tenure and plans after a sale matter.
- The building. Many centers operate in purpose-built premises. Whether the business owns or leases, and the lease term against the loan term, shapes the structure.
SBA loans for child care services gives the national figures, and financing a daycare acquisition covers the purchase.
Buying a Virginia business
SBA lenders approved 297 acquisition loans in Virginia, 10.1% of the total, at a median of $700,000 and a median rate of 9.75%. A complete change of ownership needs equity of at least 10% of total project costs, and a seller note can supply up to half of that only on full standby, with no payments of principal or interest, for the life of the SBA loan. SBA prohibits an earnout to the seller, and the seller may consult for up to 12 months, or up to 24 months under SOP 50 10 8.1 from 1 October 2026. Where the amount financed, less appraised real estate and equipment, exceeds $250,000, an independent business valuation is required and the loan for the purchase cannot exceed it.
From 1 October 2026, every change of ownership also needs financial due diligence, a quality of earnings report is required on acquisitions of $3 million or more excluding real estate, and the target must show debt service coverage of 1.25x on historical results, up from SBA's general 1.15x. A target earning 1,250 against new payments of 1,000 meets that test with nothing to spare; how a buyer's salary enters the calculation often decides whether it passes.
Virginia's economy adds one recurring question. Many targets in Northern Virginia and Hampton Roads sell to federal agencies, defense contractors or the military, directly or down the supply chain. Lenders will ask how concentrated those customers are, when major contracts end, and whether any set-aside status survives a sale. Customer concentration in an acquisition covers how lenders size that risk, and our Maryland page looks closer at government-services firms.
Virginia's 504 loans run small
Virginia recorded 295 SBA 504 loans at a median of $489,000, below the median Virginia acquisition loan. That suggests smaller buildings and equipment rather than large developments. 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, or 15% for a new business or special-purpose property. The borrower must occupy at least 51% of an existing building, or 60% of new construction.
Since July 2026 the 504 and 7(a) limits are counted separately, so a Virginia owner can put the building in a 504 loan and keep the full 7(a) limit for an acquisition or working capital. A 7(a) loan can also carry real estate for up to 25 years in the same loan as goodwill. SBA 7(a) vs SBA 504 compares the two.
SBA or conventional, and what to prepare
SBA buys a lower down payment, a longer term and credit for goodwill. It costs a guaranty fee, SBA documentation and a personal guarantee from every owner of 20% or more. Conventional banks commonly look for debt service coverage of at least 1.25x and more equity, and skip SBA's eligibility review. For an established Virginia company with hard assets and steady earnings, conventional may cost about the same with less process; for a buyer of a goodwill-heavy company, SBA usually leads. SBA 7(a) vs a conventional acquisition loan sets out the trade.
Transparent's lender book holds 1,800+ lenders, 278 of which write SBA 7(a) and 504 and 1,148 conventional term and private credit, so a Virginia request can go to lenders that read historical cash flow, with its conventional alternative priced on the same file. The standard SBA documents are two to three years of business and personal tax returns, a P&L, balance sheet and year-to-date P&L, a debt schedule with copies of notes being refinanced, and a personal financial statement for each 20%+ owner. For an acquisition, add the target's latest full year of figures and the letter of intent; for a child care center, the license and enrollment records; for a government-facing firm, a contract schedule. Once they are in, Transparent builds the full lender package, a financing model, lender presentation, blind teaser and underwriting memo, in a day; built by hand, the same package takes at least a week. Transparent charges nothing before a loan closes, and on SBA loans the lender pays Transparent, not the borrower. The package shows what lenders receive.
Common questions
- What is the typical SBA loan size in Virginia?
- The median Virginia 7(a) loan approved from October 2023 to June 2026 was $200,000, against a national median of $150,300. The middle half ran from $80,000 to $500,000, and 12.5% of loans were for $1 million or more.
- What interest rate do Virginia SBA loans carry?
- The median rate at approval was 10.5%, a little above the national 10.25%, with the middle half between 9.5% and 11.25%. Acquisition loans, which are larger and fall under SBA's tightest rate cap, priced at a median of 9.75%.
- How many Virginia SBA loans go to start-ups?
- 23.2% of Virginia 7(a) loans financed start-ups, and 17.6% financed franchises. For a start-up, SBA requires at least 10% of total project costs as equity, and lenders weigh the operator's experience and projection heavily.
- Can I buy a child care center in Virginia with an SBA loan?
- Yes. Child care was the fourth-largest industry by SBA loan count in the state. Lenders will want the plan for the license to pass to the new owner, enrollment by age group, staffing, and the lease or building position.
- Do I need a Virginia bank for a Virginia SBA loan?
- No. An SBA lender does not need a branch in the state. 174 lenders approved Virginia loans in the period; the right one is the one whose credit box fits your industry, size and history.