SBA Lending This Week — March 24, 2026

Top Stories

SBA 7(a) Loan Approval Volume Up 12% Year-Over-Year in Q1 2026

The numbers are in, and they're telling a story we've been feeling on the ground: SBA 7(a) approvals climbed 12% in Q1 2026 compared to the same period last year. That's real volume, not just noise. More deals are getting done, more lenders are writing paper, and borrower demand hasn't slowed down.

What's driving it? A few things. Business acquisition activity is up — baby boomers are selling, and younger buyers are stepping in with SBA financing. The franchise sector is particularly active, and we're seeing a lot of movement in healthcare, home services, and food service. Construction-related businesses are also picking up as infrastructure spending trickles down.

Our take: if you're an originator and your pipeline isn't growing right now, it's a sourcing problem, not a market problem. There are deals everywhere. The question is whether you're positioned to find them.

New SBA Express Loan Limit Raised to $500K

Big news for the small-deal crowd: the SBA Express loan limit has been raised to $500K, up from $350K. Express loans are the SBA's faster-turnaround product — lenders can use their own credit process instead of going through full SBA underwriting, which means quicker approvals and less paperwork.

For borrowers, this means working capital, equipment purchases, and smaller expansion projects just got easier to finance. For originators, it means you've got a new tool in the belt for deals that don't need a full 7(a) but are too big for a conventional line.

The catch: Express loans only carry a 50% SBA guarantee (versus 75% to 85% for standard 7(a)), so lenders are pickier about credit quality. You'll want borrowers with 680+ FICO and at least two years in business. But for the right deal, this is a faster path to close.

Rate Watch

• WSJ Prime Rate: 7.50%
• Typical SBA 7(a) Range: 10.0%–11.5%
• 10-Year Treasury: 4.20% (affects SBA 504)

Rates shown reflect market conditions as of the publication date and are subject to change. Your actual rate will depend on your lender, creditworthiness, and deal structure.

Deal Spotlight

This one's for the equipment folks. We structured a $750K SBA 7(a) loan for a construction company that needed two new excavators and a fleet of trucks. The borrower had been in business for 8 years, solid revenue growth, and a 720 FICO — but their bank said no because they didn't have enough collateral outside the equipment itself.

We matched them with an SBA lender who understood construction equipment deals. The trick was documenting the company's backlog of signed contracts — $2.1M in committed work over the next 18 months. That backlog told the lender the revenue was coming, and the equipment would pay for itself.

7-year term, 10.50% rate, closed in 38 days. The borrower is now bidding on larger projects because they've got the iron to do the work.

Lesson: when collateral is thin, find other ways to demonstrate repayment ability. Contract backlog, recurring revenue, and customer concentration analysis can all fill the gap.

From the Podcast

We talked about sourcing strategies in detail on a recent episode. If you're trying to build your pipeline, listen to How to Source SBA Loans: 12 Strategies That Work — practical tactics from originators who are doing $5M+ a year.

Worth Reading

• How to Become an SBA Loan Broker in 2026 — the step-by-step guide for getting into the business
• SBA 7(a) vs. SBA 504: Which Loan Is Right for You? — understand when to use each program

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This content is for educational purposes only and does not constitute legal, financial, or investment advice. Consult with a qualified attorney, CPA, and financial advisor before making business or financing decisions. Loan terms, rates, and programs are subject to change and vary by lender.