SBA loans in Houston: who lends, what gets bought
Since FY2018, SBA lenders have approved 888 7(a) loans to buy an existing business in the Houston area, totaling $1.3B. The median loan was $978,500, 52% higher than the $645,250 national median. The area is Harris, Fort Bend, Montgomery, Brazoria and Galveston Counties, Texas, which together make 22% of the state's acquisition loans. Volume rose 30% from FY2024 to FY2026.
- Loans, FY2018-FY2026
- 888
- Median loan
- $978,500 (middle half $400,000 to $2,100,000)
- Top lender
- Live Oak Banking Company (14%, 120 loans)
- Top industry
- Hotels and Motels
- Charge-off, FY2018-FY2021 loans
- 4.5% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 147 (+25% vs FY2025)
SBA lenders approved 888 7(a) loans to buy a business in the Houston area from FY2018-FY2026, with a median of $978,500 and a middle half of $400,000 to $2,100,000. Live Oak Banking Company made 14% of them. FY2026 had 147 loans, up 25% from FY2025.
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SBA lenders in Houston
The lenders that made the most SBA 7(a) acquisition loans in the Houston area, FY2018 to FY2026. Many lend in more than one state; open a lender page to see where else it lends.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 120 | 13.5% | $168M | |
| 2 | The Huntington National Bank | 65 | 7.3% | $75.8M | |
| 3 | Prosperity Bank | 58 | 6.5% | $76.2M | |
| 4 | Plains State Bank | 33 | 3.7% | $93.2M | |
| 5 | Zions Bancorporation, National Association | 30 | 3.4% | $29.4M | |
| 6 | Wells Fargo Bank National Association | 28 | 3.2% | $14.9M | |
| 7 | Fifth Third Bank | 22 | 2.5% | $41.6M | |
| 8 | Home Bank, National Association | 17 | 1.9% | $28.1M | |
| 9 | T Bank, National Association | 15 | 1.7% | $26.1M | |
| 10 | Frost Bank | 15 | 1.7% | $18.3M |
What gets bought in Houston
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 55 | 6.2% | $179M | |
| 2 | Child Care Services | 52 | 5.9% | $100M | |
| 3 | Gasoline Stations with Convenience Stores | 38 | 4.3% | $83.5M | |
| 4 | General Automotive Repair | 28 | 3.2% | $28.9M | |
| 5 | Full-Service Restaurants | 26 | 2.9% | $29.2M | |
| 6 | Limited-Service Restaurants | 26 | 2.9% | $18.4M | |
| 7 | Home Health Care Services | 25 | 2.8% | $30.6M | |
| 8 | Insurance Agencies and Brokerages | 21 | 2.4% | $27.9M | |
| 9 | Fitness and Recreational Sports Centers | 18 | 2.0% | $10.5M | |
| 10 | Offices of Certified Public Accountants | 15 | 1.7% | $14.1M |
Franchise brands bought in Houston
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Children's Lighthouse Early Learning Schools | 8 | 0.9% | $28.6M | |
| 2 | Comfort Suites | 5 | 0.6% | $17.9M | |
| 3 | Home Instead | 5 | 0.6% | $3.5M | |
| 4 | Holiday Inn Express | 4 | 0.5% | $19.4M | |
| 5 | Best Western | 4 | 0.5% | $11.3M | |
| 6 | Kids 'R' Kids | 4 | 0.5% | $8M | |
| 7 | King Fuels | 4 | 0.5% | $7.1M | |
| 8 | Massage Heights | 4 | 0.5% | $3.1M | |
| 9 | Primrose Schools | 3 | 0.3% | $13.4M | |
| 10 | Days Inn | 3 | 0.3% | $9.3M | |
| 11 | The Goddard School | 3 | 0.3% | $9.1M | |
| 12 | Anytime Fitness | 3 | 0.3% | $1.2M | |
| 13 | La Quinta | 2 | 0.2% | $10M | |
| 14 | Candlewood Suites | 2 | 0.2% | $8.5M | |
| 15 | Quality Inn | 2 | 0.2% | $6.4M |
That draft favors the seller. We review it for the buyer, line by line.
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Houston acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 85 | $110M | $674,000 | |
| FY2019 | 124 | $149M | $730,500 | |
| FY2020 | 84 | $107M | $963,950 | |
| FY2021 | 103 | $162M | $1,050,000 | |
| FY2022 | 60 | $114M | $1,674,500 | |
| FY2023 | 54 | $79.6M | $1,170,200 | |
| FY2024 | 113 | $169M | $882,400 | |
| FY2025 | 118 | $160M | $937,500 | |
| FY2026 | 147 | $233M | $1,063,800 |
How often do these acquisition loans fail?
Of the 396 the Houston area acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 18 have been charged off by the SBA, a rate of 4.5% by loan count and 2.9% by dollars. 171 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 the Houston area is 29% higher 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.
How Houston compares
| Measure | Houston | Texas, all | All acquisitions |
|---|---|---|---|
| Median loan | $978,500 | $870,000 | $645,250 |
| Middle half of loans | $400,000 to $2,100,000 | $384,025 to $1,883,250 | $283,000 to $1,465,000 |
| Average initial rate | 7.77% | 7.78% | 7.76% |
| Median term | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 4.5% | 4.8% | 3.5% |
| Loans in sample | 888 | 4,080 | 48,902 |
The median for Houston-area acquisition loans is $978,500, slightly above the $870,000 median for all Texas acquisitions and well above the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $400,000 to $2,100,000, 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 7.77%, in line with the 7.76% national average.
Seasoned loans were charged off at 4.5%, in line with the 4.8% rate for all Texas acquisitions and above the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Houston | All acquisitions |
|---|---|---|
| Under $350K | 21% | 30% |
| $350K to under $1M | 30% | 33% |
| $1M to under $2M | 23% | 19% |
| $2M and over | 27% | 17% |
Most Houston-area acquisition loans (51%) were under $1M, and the largest single band is $350K to under $1M at 30%, against 33% 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 14% of Houston-area acquisition loans, and the top three lenders together made 27%. 73 of the 139 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 265 Houston-area acquisition loans were approved. That is 59% more than the 167 approved in FY2023 and FY2024. The median was $1,000,000, in line with the $978,500 median across all years.
Seller note standby terms and third-party consents are reviewed before closing.
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Counties in the Houston area
Loans are assigned to the area by the project county the lender recorded, not the borrower's mailing address. The counties used, with loans in each:
| County | Loans |
|---|---|
| Harris, TX | 615 |
| Fort Bend, TX | 88 |
| Montgomery, TX | 108 |
| Brazoria, TX | 33 |
| Galveston, TX | 44 |
Questions buyers ask
How much do buyers borrow to buy a business in the Houston area?
The median SBA 7(a) acquisition loan in the Houston area was $978,500 across 888 loans (FY2018 to FY2026), 52% higher than the $645,250 national median. The middle half of loans ran from $400,000 to $2,100,000. A loan is not the purchase price: it is net of the buyer's equity injection and usually includes some working capital.
Which banks make the most SBA acquisition loans in Houston?
Live Oak Banking Company (120), The Huntington National Bank (65), Prosperity Bank (58), Plains State Bank (33), Zions Bancorporation, National Association (30). Live Oak Banking Company accounts for 14% of Houston-area acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Houston?
Hotels and Motels (55), Child Care Services (52), Gasoline Stations with Convenience Stores (38), General Automotive Repair (28), Full-Service Restaurants (26). Industry is the NAICS code the lender recorded.
How often do SBA acquisition loans fail in Houston?
In the seasoned cohort (FY2018 to FY2021), among 396 Houston-area acquisition loans: 4.5% charged off, 29% higher than the 3.5% national acquisition average.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Texas acquisitions
- Hotels and Motels nationally
- Child Care Services nationally
- Gasoline Stations with Convenience Stores nationally
- Live Oak Banking Company
- The Huntington National Bank
- Prosperity Bank
- All metro areas
- SBA lenders by state
The metro area is a fixed list of counties chosen for this site, not an official statistical area. State is the project state recorded by the lender.
Cite this data
SBA Acquisition Data, "Houston, TX: SBA acquisition loan data", https://sbaacquisitiondata.com/metro/houston (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/metro/houston.json.