Residential Mental Health and Substance Abuse Facilities: SBA business acquisition loan data
25 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Residential Mental Health and Substance Abuse Facilities (NAICS 623220), totaling $39.9M. Median loan $1,200,000, 86% higher than the all-acquisition median.
- Loans, FY2018-FY2026
- 25
- Median loan
- $1,200,000 (middle half $342,600 to $2,380,000)
- Top lender
- Live Oak Banking Company (44%, 11 loans)
- Top state
- California
- FY2026 loans (latest complete year)
- 7
SBA lenders approved 25 7(a) loans to buy businesses in the Residential Mental Health and Substance Abuse Facilities industry from FY2018-FY2026, with a median of $1,200,000 and a middle half of $342,600 to $2,380,000. Live Oak Banking Company made 44% of them. FY2026 had 7 loans.
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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 $2,380,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.1% of all SBA-financed business purchases, ranking #261 of 300 industries tracked.
- Geography. California leads with 6 loans; the top five states account for 68% of the industry's acquisitions.
- Jobs. Lenders reported 577 jobs supported across these loans, about 23.1 per acquisition, a rough proxy for the size of business changing hands.
How the Residential Mental Health and Substance Abuse Facilities industry compares
| Measure | Residential Mental Health... | All acquisitions |
|---|---|---|
| Median loan | $1,200,000 | $645,250 |
| Middle half of loans | $342,600 to $2,380,000 | $283,000 to $1,465,000 |
| Average initial rate | 8.62% | 7.76% |
| Median term | 10 years | 10 years |
| Charge-off rate (seasoned loans) | n/a | 3.5% |
| Loans in sample | 25 | 48,902 |
The median for Residential Mental Health and Substance Abuse Facilities acquisition loans is $1,200,000, well above the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $342,600 to $2,380,000, against $283,000 to $1,465,000 nationally; the median term is 10 years, the same as the national median; the average initial rate is 8.62%, above the 7.76% national average.
Too few of these loans are old enough to measure a charge-off rate; the national rate for seasoned acquisition loans is 3.5%.
Loan size distribution
| Loan size | Residential Mental Health... | All acquisitions |
|---|---|---|
| Under $350K | 28% | 30% |
| $350K to under $1M | 20% | 33% |
| $1M to under $2M | 16% | 19% |
| $2M and over | 36% | 17% |
Most Residential Mental Health and Substance Abuse Facilities acquisition loans (52%) were $1M or more, and the largest single band is $2M and over at 36%, against 17% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Live Oak Banking Company made 44% of Residential Mental Health and Substance Abuse Facilities acquisition loans, and the top three lenders together made 60%. 1 of the 11 lenders involved made three or more. Only 1 lender has repeat experience here. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 11 Residential Mental Health and Substance Abuse Facilities acquisition loans were approved. Fewer than 10 loans were approved in FY2023 and FY2024, so no change is computed. The median was $1,200,000, in line with the $1,200,000 median across all years.
Residential Mental Health and Substance Abuse Facilities acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $960K | $959,700 | |
| FY2019 | 1 | $228K | $228,000 | |
| FY2020 | 1 | $1.8M | $1,817,000 | |
| FY2021 | 3 | $5.8M | $1,400,000 | |
| FY2022 | 2 | $2.8M | $1,421,300 | |
| FY2023 | 2 | $3.8M | $1,899,500 | |
| FY2024 | 4 | $5.7M | $1,290,000 | |
| FY2025 | 4 | $6.7M | $853,000 | |
| FY2026 | 7 | $11.9M | $1,532,400 |
How often do these acquisition loans fail?
Fewer than 20 Residential Mental Health and Substance Abuse Facilities acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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.
The purchase agreement decides what you bought, not the loan approval.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 6 | 24.0% | $13.8M | |
| 2 | Arizona | 4 | 16.0% | $1.7M | |
| 3 | Utah | 3 | 12.0% | $3.7M | |
| 4 | Colorado | 2 | 8.0% | $5M | |
| 5 | Minnesota | 2 | 8.0% | $3.3M | |
| 6 | New Jersey | 2 | 8.0% | $2.5M | |
| 7 | Kansas | 2 | 8.0% | $2.2M | |
| 8 | South Carolina | 1 | 4.0% | $4.1M | |
| 9 | Florida | 1 | 4.0% | $1.5M | |
| 10 | Michigan | 1 | 4.0% | $1.2M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 11 | 44.0% | $15.3M | |
| 2 | Celtic Bank Corporation | 2 | 8.0% | $3.9M | |
| 3 | Happen Bank | 2 | 8.0% | $3.8M | |
| 4 | Byline Bank | 2 | 8.0% | $1.9M | |
| 5 | Sunflower Bank National Association | 2 | 8.0% | $1.3M | |
| 6 | Pathward National Association | 1 | 4.0% | $5M | |
| 7 | FinWise Bank | 1 | 4.0% | $4.1M | |
| 8 | Newtek Small Business Finance, LLC | 1 | 4.0% | $2.5M | |
| 9 | First Bank of the Lake | 1 | 4.0% | $1.5M | |
| 10 | Commerce Bank | 1 | 4.0% | $343K |
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Questions buyers ask
How much is a typical SBA loan to buy a business in Residential Mental Health and Substance Abuse Facilities?
Median $1,200,000 across 25 acquisition loans (FY2018 to FY2026); the middle half ran $342,600 to $2,380,000. That is 86% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Residential Mental Health and Substance Abuse Facilities acquisitions?
Live Oak Banking Company (11), Celtic Bank Corporation (2), Happen Bank (2), Byline Bank (2), Sunflower Bank National Association (2).
Are businesses in Residential Mental Health and Substance Abuse Facilities 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 Residential Mental Health and Substance Abuse Facilities?
Too few loans are old enough to measure for this industry. The all-acquisition benchmark is 3.5%.
What loan terms are common for Residential Mental Health and Substance Abuse Facilities acquisitions?
Median term 10 years, average initial rate 8.62% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
How much do you need down for an SBA loan to buy a business in the Residential Mental Health and Substance Abuse Facilities industry?
The SBA requires the buyer to make an equity injection, commonly 10% of total project cost, and a lender may ask for more. The SBA file does not record injections, so the figures here are the financed portion: the median for Residential Mental Health and Substance Abuse Facilities acquisition loans was $1,200,000, and the middle half ran $342,600 to $2,380,000.
How long does an SBA acquisition loan take?
For a change-of-ownership 7(a) loan, 45 to 90 days from application to close is typical. It varies by lender and by how quickly third-party reports, such as the business valuation and appraisal, come back. The SBA file records approval dates, not application dates, so this site cannot measure it. Lenders approved 11 Residential Mental Health and Substance Abuse Facilities acquisition loans in FY2025 and FY2026.
Which banks make SBA loans for a business in the Residential Mental Health and Substance Abuse Facilities industry?
By loan count, FY2018 to FY2026: Live Oak Banking Company (11), Celtic Bank Corporation (2), Happen Bank (2), Byline Bank (2), Sunflower Bank National Association (2). Live Oak Banking Company made 44% of Residential Mental Health and Substance Abuse Facilities acquisition loans. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
Cite this data
SBA Acquisition Data, "Residential Mental Health and Substance Abuse Facilities: SBA acquisition loan data", https://sbaacquisitiondata.com/industry/residential-mental-health-and-substance-abuse-facilities-623220 (data as of September 30, 2026). Source: U.S. Small Business Administration 7(a) loan file, data.sba.gov. Aggregated by SBA Acquisition Data.
The figures on this page are also published as JSON at https://sbaacquisitiondata.com/data/industry/residential-mental-health-and-substance-abuse-facilities-623220.json.