Machine Shops: SBA business acquisition loan data
245 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Machine Shops (NAICS 332710), totaling $350M. Median loan $1,000,000, 55% higher than the all-acquisition median. Annual volume rose 18% from FY2024 to FY2026.
Terms signed in the LOI shape the purchase agreement that follows.
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Reading this industry's numbers
- Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $2,165,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.5% of all SBA-financed business purchases, ranking #47 of 300 industries tracked.
- Geography. Wisconsin leads with 25 loans; the top five states account for 39% of the industry's acquisitions.
- Jobs. Lenders reported 3,306 jobs supported across these loans, about 13.5 per acquisition, a rough proxy for the size of business changing hands.
Machine Shops acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 18 | $21.2M | $1,106,500 | |
| FY2019 | 29 | $45.4M | $838,000 | |
| FY2020 | 27 | $29.7M | $800,000 | |
| FY2021 | 23 | $33.7M | $1,372,000 | |
| FY2022 | 20 | $32M | $882,500 | |
| FY2023 | 24 | $27.6M | $659,500 | |
| FY2024 | 33 | $59.7M | $1,620,000 | |
| FY2025 | 32 | $43.7M | $1,081,250 | |
| FY2026 | 39 | $57M | $1,159,800 |
How often do these acquisition loans fail?
Of the 97 Machine Shops acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 1.0% by loan count and 1.3% by dollars. 43 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Machine Shops is 71% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wisconsin | 25 | 10.2% | $35.8M | |
| 2 | Minnesota | 19 | 7.8% | $19.9M | |
| 3 | Illinois | 18 | 7.3% | $30.6M | |
| 4 | Texas | 17 | 6.9% | $28.2M | |
| 5 | California | 17 | 6.9% | $21.3M | |
| 6 | Ohio | 17 | 6.9% | $9.7M | |
| 7 | Pennsylvania | 15 | 6.1% | $23.8M | |
| 8 | Florida | 12 | 4.9% | $18.7M | |
| 9 | North Carolina | 11 | 4.5% | $25M | |
| 10 | Michigan | 9 | 3.7% | $12.8M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 14 | 5.7% | $14.2M | |
| 2 | Live Oak Banking Company | 13 | 5.3% | $34.7M | |
| 3 | Byline Bank | 10 | 4.1% | $25.5M | |
| 4 | Old National Bank | 9 | 3.7% | $16.9M | |
| 5 | BankVista | 7 | 2.9% | $4.2M | |
| 6 | PNC Bank, National Association | 6 | 2.4% | $6.8M | |
| 7 | Northwest Bank | 6 | 2.4% | $3M | |
| 8 | Midland States Bank | 4 | 1.6% | $10.6M | |
| 9 | Fifth Third Bank | 4 | 1.6% | $7.9M | |
| 10 | Merchants Bank of Indiana | 4 | 1.6% | $7.4M |
Seller note standby terms and third-party consents are reviewed before closing.
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Questions buyers ask
How much is a typical SBA loan to buy a business in Machine Shops?
Median $1,000,000 across 245 acquisition loans (FY2018 to FY2026); the middle half ran $350,000 to $2,165,000. That is 55% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Machine Shops acquisitions?
The Huntington National Bank (14), Live Oak Banking Company (13), Byline Bank (10), Old National Bank (9), BankVista (7).
Are businesses in Machine Shops often franchised?
Rarely. Only 0% of acquisition loans in this industry involved a franchised business; most are independent operators.
How risky are SBA loans for buying a business in Machine Shops?
Of 97 seasoned loans (FY2018 to FY2021), 1.0% charged off, 71% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Machine Shops acquisitions?
Median term 10 years, average initial rate 7.82% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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