SBA loans in Los Angeles: who lends, what gets bought
Since FY2018, SBA lenders have approved 1,880 7(a) loans to buy an existing business in the Los Angeles area, totaling $1.8B. The median loan was $527,150, 18% lower than the $645,250 national median. The area is Los Angeles and Orange Counties, California, which together make 36% of the state's acquisition loans. Volume rose 22% from FY2024 to FY2026.
- Loans, FY2018-FY2026
- 1,880
- Median loan
- $527,150 (middle half $250,000 to $1,250,000)
- Top lender
- Bank of Hope (10%, 186 loans)
- Top industry
- Beer, Wine, and Liquor Retailers
- Charge-off, FY2018-FY2021 loans
- 5.8% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 241 (-11% vs FY2025)
SBA lenders approved 1,880 7(a) loans to buy a business in the Los Angeles area from FY2018-FY2026, with a median of $527,150 and a middle half of $250,000 to $1,250,000. Bank of Hope made 10% of them. FY2026 had 241 loans, down 11% from FY2025.
Terms signed in the LOI shape the purchase agreement that follows.
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SBA lenders in Los Angeles
The lenders that made the most SBA 7(a) acquisition loans in the Los Angeles 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 | Bank of Hope | 186 | 9.9% | $64.9M | |
| 2 | Live Oak Banking Company | 171 | 9.1% | $237M | |
| 3 | Hanmi Bank | 113 | 6.0% | $71.4M | |
| 4 | Open Bank | 109 | 5.8% | $128M | |
| 5 | PCB Bank | 78 | 4.1% | $81.1M | |
| 6 | Commonwealth Business Bank | 71 | 3.8% | $45.6M | |
| 7 | American Continental Bank | 69 | 3.7% | $45.5M | |
| 8 | U.S. Bank, National Association | 63 | 3.4% | $59.8M | |
| 9 | The Huntington National Bank | 61 | 3.2% | $50.5M | |
| 10 | United Business Bank | 58 | 3.1% | $40.3M |
What gets bought in Los Angeles
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 213 | 11.3% | $139M | |
| 2 | Full-Service Restaurants | 192 | 10.2% | $97.1M | |
| 3 | Limited-Service Restaurants | 147 | 7.8% | $63.2M | |
| 4 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 55 | 2.9% | $23.1M | |
| 5 | Coin-Operated Laundries and Drycleaners | 49 | 2.6% | $75.3M | |
| 6 | Snack and Nonalcoholic Beverage Bars | 49 | 2.6% | $21.5M | |
| 7 | Convenience Retailers | 44 | 2.3% | $20M | |
| 8 | Gasoline Stations with Convenience Stores | 40 | 2.1% | $87.4M | |
| 9 | Pharmacies and Drug Retailers | 37 | 2.0% | $46.9M | |
| 10 | General Automotive Repair | 34 | 1.8% | $22.7M |
Franchise brands bought in Los Angeles
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 14 | 0.7% | $6M | |
| 2 | It's Boba Time | 13 | 0.7% | $7.9M | |
| 3 | Papa John's | 10 | 0.5% | $3.8M | |
| 4 | Circle K | 7 | 0.4% | $6.3M | |
| 5 | Paris Baguette | 6 | 0.3% | $7.8M | |
| 6 | Right at Home | 6 | 0.3% | $4.1M | |
| 7 | L&L HAWAIIAN BARBEQUE | 5 | 0.3% | $1.5M | |
| 8 | Subway | 5 | 0.3% | $941K | |
| 9 | Chevron | 4 | 0.2% | $5.6M | |
| 10 | Kumon | 3 | 0.2% | $2.3M | |
| 11 | Minuteman Press | 3 | 0.2% | $1.9M | |
| 12 | Domino's Pizza | 3 | 0.2% | $1.8M | |
| 13 | Baskin-Robbins | 3 | 0.2% | $1.1M | |
| 14 | PostalAnnex+ | 3 | 0.2% | $762K | |
| 15 | Yogurtland | 3 | 0.2% | $548K |
The purchase agreement decides what you bought, not the loan approval.
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Los Angeles acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 215 | $158M | $332,000 | |
| FY2019 | 249 | $196M | $400,000 | |
| FY2020 | 187 | $154M | $475,000 | |
| FY2021 | 189 | $228M | $687,000 | |
| FY2022 | 158 | $167M | $501,650 | |
| FY2023 | 172 | $175M | $523,300 | |
| FY2024 | 197 | $204M | $605,000 | |
| FY2025 | 272 | $280M | $643,000 | |
| FY2026 | 241 | $287M | $760,000 |
How often do these acquisition loans fail?
Of the 840 the Los Angeles area acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 49 have been charged off by the SBA, a rate of 5.8% by loan count and 2.1% by dollars. 489 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 Los Angeles area is 66% 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 Los Angeles compares
| Measure | Los Angeles | California, all | All acquisitions |
|---|---|---|---|
| Median loan | $527,150 | $600,000 | $645,250 |
| Middle half of loans | $250,000 to $1,250,000 | $296,225 to $1,395,000 | $283,000 to $1,465,000 |
| Average initial rate | 7.88% | 7.87% | 7.76% |
| Median term | 10 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 5.8% | 4.1% | 3.5% |
| Loans in sample | 1,880 | 5,184 | 48,902 |
The median for Los Angeles-area acquisition loans is $527,150, slightly below the $600,000 median for all California acquisitions and below the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $250,000 to $1,250,000, 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 7.88%, in line with the 7.76% national average.
Seasoned loans were charged off at 5.8%, well above the 4.1% rate for all California acquisitions and well above the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Los Angeles | All acquisitions |
|---|---|---|
| Under $350K | 34% | 30% |
| $350K to under $1M | 35% | 33% |
| $1M to under $2M | 17% | 19% |
| $2M and over | 14% | 17% |
Most Los Angeles-area acquisition loans (69%) were under $1M, and the largest single band is $350K to under $1M at 35%, against 33% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Bank of Hope made 10% of Los Angeles-area acquisition loans, and the top three lenders together made 25%. 93 of the 144 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, 513 Los Angeles-area acquisition loans were approved. That is 39% more than the 369 approved in FY2023 and FY2024. The median was $685,000, above the $527,150 median across all years.
Seller note standby terms and third-party consents are reviewed before closing.
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Counties in the Los Angeles 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 |
|---|---|
| Los Angeles, CA | 1,294 |
| Orange, CA | 586 |
Questions buyers ask
How much do buyers borrow to buy a business in the Los Angeles area?
The median SBA 7(a) acquisition loan in the Los Angeles area was $527,150 across 1,880 loans (FY2018 to FY2026), 18% lower than the $645,250 national median. The middle half of loans ran from $250,000 to $1,250,000. 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 Los Angeles?
Bank of Hope (186), Live Oak Banking Company (171), Hanmi Bank (113), Open Bank (109), PCB Bank (78). Bank of Hope accounts for 10% of Los Angeles-area acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Los Angeles?
Beer, Wine, and Liquor Retailers (213), Full-Service Restaurants (192), Limited-Service Restaurants (147), Supermarkets and Other Grocery Retailers (55), Coin-Operated Laundries and Drycleaners (49). Industry is the NAICS code the lender recorded.
How often do SBA acquisition loans fail in Los Angeles?
In the seasoned cohort (FY2018 to FY2021), among 840 Los Angeles-area acquisition loans: 5.8% charged off, 66% higher than the 3.5% national acquisition average.
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Related
- All California acquisitions
- Beer, Wine, and Liquor Retailers nationally
- Full-Service Restaurants nationally
- Limited-Service Restaurants nationally
- Bank of Hope
- Live Oak Banking Company
- Hanmi 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, "Los Angeles, CA: SBA acquisition loan data", https://sbaacquisitiondata.com/metro/los-angeles (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/los-angeles.json.