1 % of SBA Banks Fund Half the Loans
1 % of SBA Banks Fund Half the Loans
SBA lending is a lending specialty some lenders have made a special focus and have dedicated the resources and people to maximize how many SBA loans they can close annually.
With SBA’s extensive rules and requirements, success in this space demands a well-rounded combination of expertise, credit risk acumen, and a robust business development network.
To understand what and where the top SBA lenders are focused on, we analyzed the collective performance of the most recent top 1% SBA lenders. We looked at their combined top industries, franchise loan industries, states and cities, the emphasis on out of state lending, average loan amounts, and our SBA lending forecast model for combined lenders in the one percent.
We look a the top 1% for FY 2024 which is the last 12 months ending 9/30/24 and over the last 2 years which would be combining FY 2024 with FY 2023. All data in this article is based on funded loans not approvals (not all approved loans get funded).
Who are the top 1% SBA Lenders in 2024?
The top 1% of banks funding an SBA loan in FY 2024 funded 48% of the total loans and 36% of total dollars. 94% were out of state loans. The average loan amount of the 1% was $683K.
36% of all banks funding an SBA loan during FY 2024 funded a franchise loan. Of these, the top 1% of banks funding a franchise SBA loan in FY 2024 funded 41% of the total loans and 31% of total dollars. 97% were out of state loans. The average franchise loan amount of the 1% was $1 million.
The average lender in the top one percent last year funded 1,590 SBA loans for 55 industries to borrowers in 320 cities. The average loan amount is $324K with the average franchise loan amount of $715K for 91 franchise loans funded on average per lender. 89% of loans on average funded for out-of-state loans which represented 93% of funded dollars. For franchise lending out-of-state allocation increases to 97% of funded dollars.
Top 1% of SBA Lenders for Funded Dollars
FY 2024: 13 Banks
Live Oak Bank
Huntington Bank
Newtek Bank
Readycap Lending
U.S. Bank
First Internet Bank
Celtic Bank
BayFirst National Bank
Wells Fargo Bank
JPMorgan Chase Bank
Bank of America
Bank of George
TD Bank
The Average Top 1% SBA Lender: Funded Dollars Distribution by Business Age
FY 2024 SBA 7(a) Funded Loans
Startups
The combined statistics if all 1% lenders were one lender:
$534K average amount
$407K average franchise amount
15% of total funded of which 28% were franchise dollars
92% OOS
94% franchise OOS
Change of Ownership
The combined statistics if all 1% lenders were one lender:
$1.4M average amount
$2.4M average franchise amount
23% of total funded of which 22% were franchise dollars
94% OOS
99% franchise OOS
Business > 2 Years Old
The combined statistics if all 1% lenders were one lender:
$232K average amount
$475K average franchise amount
47% of total funded of which 3% were franchise dollars
92% OOS
95% franchise OOS
Business < 2 Years Old
The combined statistics if all 1% lenders were one lender:
$266K average amount
$918K average franchise amount
15% of total funded of which 12% were franchise dollars
96% OOS
98% franchise OOS
Top 1% of SBA Lenders for Funded Dollars Over Last 2 Years
2 Years (FY23/24)
The top 1% of banks funding an SBA loan over the last 2 years funded 54% of the total loans and 33% of total dollars. 91% were out of state loans and 50% of the 1% averaged more than 95% in out of state lending. The average loan amount of the 1% was $683K.
46% of all banks funding an SBA loan during this two-year period funded a franchise loan. Of these, the top 1% of banks funding a franchise SBA loan funded 42% of the total loans and 34% of total dollars. 97% were out of state loans and 50% of the 1% of top banks averaged more than 99% in out of state franchise lending. The average franchise loan amount of the 1% was $1.4 million.
About the Top 1% Lenders Over the Last 2 Years
Live Oak Bank: Leading the pack, Live Oak Bank funded an impressive 2,056 loans totaling $3.1 billion, with an average loan amount of $1.52 million. Notably, 93.71% of their loans were provided to out-of-state borrowers, underlining their extensive reach and commitment to national business support.
Huntington Bank: With 10,704 loans issued at a total value of $2.36 billion, Huntington Bank distinguishes itself as a volume leader. Their average loan amount of $219,560 reflects accessibility for smaller funding needs, alongside their strong regional presence that funds 76.93% within their state.
Readycap Lending: Demonstrating expertise in mid-size loans, Readycap Lending completed 3,611 loans valued at $1.25 billion. Their average loan amount of $348,740 and a 96.9% out-of-state funding percentage.
Newtek Bank: Newtek Bank issued 2,750 loans totaling $1.19 billion, with an average loan size of $433,175. Their balanced funding approach aligns with their 85.26% out-of-state funding percentage, serving diverse client needs efficiently.
Celtic Bank: Celtic Bank provided 1,444 loans totaling $886 million. With 97.39% of loans issued out of state, they exemplify a strong national presence and ability to fund larger projects.
BayFirst National Bank: BayFirst funded 5,049 loans worth $841 million, with an average loan size of $167,214, positioning themselves as champions for smaller businesses. 82.07% is out-of-state funding.
First Internet Bank: First Internet Bank funded 598 loans amounting to $827 million, boasting one of the highest average loan amounts at $1.38 million. Their 96.78% out-of-state funding ratio underscores their broad geographic reach.
TD Bank: With 5,680 SBA loans at a total value of $792 million and a modest average loan size of $139,347, TD Bank supports primarily smaller businesses. Nearly all their loans (99.51%) were funded beyond state lines, showcasing their vast influence.
U.S. Bank: U.S. Bank processed 3,852 loans worth $788 million, averaging $205,747 per loan. Their high out-of-state funding at 96.63% demonstrates their versatility and dedication to various markets nationwide.
Wells Fargo Bank: A leader in both volume and impact, Wells Fargo funded 3,386 loans totaling $775 million, with an average loan size of $235,163.
Byline Bank: Byline Bank closed 624 loans valued at $748 million, with an average loan size of $1.2 million. Their in-state funding percentage of 77.6% highlights a commitment to regional business growth.
Bank of America: Bank of America provided 1,539 loans amounting to $745 million, with an average loan size of $481,676.
JPMorgan Chase Bank: With 2,904 loans worth $650 million, JPMorgan Chase Bank recorded a $223,753 average loan size.
First Bank of the Lake: First Bank of the Lake issued 853 loans totaling $621 million, with an average loan size of $728,467. Their 98.18% out-of-state funding percentage showcases strong national impact.
Bank of George: A standout for its high average loan amount of $2.67 million, Bank of George funded 215 loans worth $573 million. Nearly all (99.5%) of these were out-of-state, illustrating their focus on significant business opportunities across borders.
Cadence Bank: Closing out this list, Cadence Bank processed 1,507 loans totaling $537 million, with an average loan size of $358,230. Their 99.18% out-of-state funding percentage is one of the highest.
13 Banks in Top 1% for FY 2024
16 Banks in Top 1% for FY 2023 & 2024
The Top Industries for Franchise Loans Funded by the Combined Top 1% of SBA Banks
Top 20 Industries Funded Over Last 2 Years by the Top 1% of Banks (16 combined lenders)
The Top Industries for Franchise Loans Funded by the Combined Top 1% of SBA Banks
Top 20 Industries for Franchise Funded Loans Over Last 2 Years by the Top 1% of Banks (16 combined lenders)
The Top Project States Funded by the Top 1% of SBA Banks
Combined map of 16 banks comprising the top 1% over the last 2 years
Top Borrower Cities Funded by the Top 1% of SBA Banks
Combined map of 16 banks comprising the top 1% over the last 2 years
Top 1% Forecasted SBA Loan Approvals
Combined forecasts of 16 banks comprising the top 1% over the last 2 years
Top 1% Forecast for loan amounts under $1 million
Top 1% Forecast for loan amounts over $1 million
The top 1% of banks are focused on out of state SBA lending
Out-of-state loans refer to loans where the bank funding the loan is located in a different state than the project it’s financing. For example, a bank based in Texas funding an SBA loan for a project in Florida.
When it comes to business lending—particularly SBA loans, which come with specific rules and complexities—the ideal lender is one who not only specializes in SBA lending but also understands your industry, business model, and, if applicable, your franchise brand.
Banks that handle a high volume of SBA loans for a particular industry develop a deep understanding of its nuances and challenges. They’re familiar with the details and have established efficient solutions, making the approval process smoother. Lenders and approvers are naturally more confident when working within industries they know well.
Many of the top lenders base their lending business development on industry verticals. They have people in place focused on specific industries regardless of state or city the business is located in. Some focus on a few industries, some a dozen, and others a few dozen industries.
On the other hand, banks that approve only a small number of SBA loans each year often struggle to build true expertise. This makes it even harder for them to develop specialized knowledge of SBA loans tailored to your specific industry or business type.
FY 2024: Top 1% SBA Lenders
Last 2 Years: Top 1% SBA Lenders
Because banks like Bank of America, Wells Fargo Bank, U.S. Bank, JPMorgan Chase, and Huntington Bank generate significant branch in-state referrals and will have a higher in-state percentage than what we show here since we consolidate all bank branches in the loan counts. When these specific banks are removed the top lenders had 97% of loan dollars going to out of state projects and 99% if a franchise.
This article is authored by Darin Manis, founder of LoanBox.
Source: All SBA 7(a) data shared is based on all SBA lending from all sources and not from SBA lending through LoanBox. SBA data and reports are not from the SBA but from SBA data from the lending analytics platform developed and maintained by SBADNA Analytics. SBADNA and LoanBox are both owned by the same parent company FuseSync LLC. LoanBox and SBADNA does not validate or verify the data released by the SBA and provides no warranty of data accuracy or completeness.