Reference · from the federal loan record
SBA lending by the numbers
Short answer. Across the seasoned federal record, 5.7% of SBA 7(a) loans and 5.0% of 504 loans charged off within seven years. The median 7(a) loan is $178,850 at a median rate of 10.0%, and 93% of loans are approved under delegated lender authority. Every figure below links to its analysis and downloadable data.
Default rates
counted by loan, 7-year window| Metric | Value | Detail | Source |
|---|---|---|---|
| All 7(a) loans | 5.7% | 24,761 of 433,292 seasoned loans | source |
| All 504 loans | 5.0% | 7,368 of 146,851 seasoned; gap vs 7(a) is mostly loan size | source |
| 504 loans since 2010 | 1.1% | recent vintages; all-time 5.0% is dominated by 2005–2009 | source |
| Under $150k (7(a)) | 7.1% | risk falls sharply with size | source |
| Over $2M (7(a)) | 1.9% | largest loans default least | source |
| Median franchise brand | 3.0% | range 0%–62.5% across 228 brands | source |
Loan size & rate
funded 7(a), FY2022–2026Approval & program mix
the federal record| Metric | Value | Detail | Source |
|---|---|---|---|
| Approved under delegated authority | 93% | 56% Preferred Lender, 37% SBA Express | source |
| Funded 7(a) records | 795,652 | the 7(a) portfolio analysed | source |
| Funded 504 records | 94,996 | the 504 portfolio since 2010 | source |
| Combined funded records | 890,648 | 7(a) plus 504 | source |
| Seasoned records (7-yr eligible) | 580,143 | approved through FY2018 | source |
Evidence & reproducibility
check our work| Source | SBA 7(a) & 504 FOIA files |
| Data released | 2026-06-30 |
| Definition | Default = charge-off within 7 years of approval, counted one loan at a time; "seasoned" = approved through FY2018 |
| Analysis updated | 2026-07-31 |
| Downloads | 7(a) default by size band · 504 vs 7(a) by band · 504 by year · franchises |