Ask most SBA lenders which loan type carries the least risk and you’ll get a range of answers — usually built on intuition, experience, or anecdote. The data from 373,981 SBA 7(a) loans funded between FY2020 and FY2025 gives a more definitive answer: change-of-ownership loans, used to buy an existing business, have the lowest charge-off rate of any major […]
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There is a persistent assumption in bank lending circles that small SBA loans are the safe ones — approachable deal sizes, familiar borrower profiles, lower dollar exposure if something goes wrong. The data, analyzed across 371,156 SBA 7(a) loans funded between FY2020 and FY2025, tells a more complicated story. Charge-off risk in the 7(a) program […]
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The SBA’s annual lending data tells a clear story to those willing to read it carefully. Strip out the noise from the pandemic-era programs — PPP, COVID EIDL — and what you’re left with in the core 7(a) program is a market that is growing, concentrating rapidly in the hands of a small number of […]
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