SBA loans in California: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 5,184 7(a) loans to buy an existing business in California, totaling $5.6B. The median loan was $600,000, 7% lower than the $645,250 national median for SBA-financed acquisitions. Volume rose 19% from FY2024 to FY2026.
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SBA lenders in California
The lenders that made the most SBA 7(a) acquisition loans in California, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 572 | 11.0% | $835M | |
| 2 | Bank of Hope | 261 | 5.0% | $118M | |
| 3 | Open Bank | 255 | 4.9% | $351M | |
| 4 | Plumas Bank | 212 | 4.1% | $163M | |
| 5 | Celtic Bank Corporation | 196 | 3.8% | $322M | |
| 6 | U.S. Bank, National Association | 176 | 3.4% | $166M | |
| 7 | Hanmi Bank | 171 | 3.3% | $121M | |
| 8 | Commonwealth Business Bank | 170 | 3.3% | $126M | |
| 9 | CDC Small Business Finance Corp. | 131 | 2.5% | $26.8M | |
| 10 | The Huntington National Bank | 128 | 2.5% | $95M |
What this tells a buyer
- Deal size band. Half of California acquisition loans fell between $296,225 and $1,395,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. California accounts for 10.6% of all SBA acquisition loans and ranks number 1 of 54 states and territories by count.
- Industry concentration. Full-Service Restaurants is the most financed business type here (420 loans, 8% of the state). The top three industries together are 22%.
- Lender concentration. Live Oak Banking Company made 11% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 16% of acquisition loans in California involved a franchised brand; the most frequent is The UPS Store (44 loans).
California acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 485 | $386M | $411,000 | |
| FY2019 | 626 | $549M | $465,000 | |
| FY2020 | 527 | $561M | $584,000 | |
| FY2021 | 612 | $735M | $688,250 | |
| FY2022 | 511 | $622M | $652,200 | |
| FY2023 | 535 | $599M | $585,000 | |
| FY2024 | 556 | $581M | $591,500 | |
| FY2025 | 668 | $780M | $727,500 | |
| FY2026 | 664 | $813M | $742,400 |
How often do these acquisition loans fail?
Of the 2,250 California acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 93 have been charged off by the SBA, a rate of 4.1% by loan count and 1.6% by dollars. 1,216 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 California is 17% 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.
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Top industries in California
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 420 | 8.1% | $239M | |
| 2 | Beer, Wine, and Liquor Retailers | 399 | 7.7% | $269M | |
| 3 | Limited-Service Restaurants | 338 | 6.5% | $177M | |
| 4 | Gasoline Stations with Convenience Stores | 246 | 4.7% | $565M | |
| 5 | Hotels (except Casino Hotels) and Motels | 150 | 2.9% | $509M | |
| 6 | Convenience Retailers | 150 | 2.9% | $83.6M | |
| 7 | General Automotive Repair | 119 | 2.3% | $92.3M | |
| 8 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 117 | 2.3% | $96.6M | |
| 9 | Assisted Living Facilities for the Elderly | 116 | 2.2% | $171M | |
| 10 | Snack and Nonalcoholic Beverage Bars | 101 | 1.9% | $45.7M |
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Franchise brands bought in California
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 44 | 0.8% | $18.8M | |
| 2 | Subway | 26 | 0.5% | $8M | |
| 3 | Motel 6 | 22 | 0.4% | $91.8M | |
| 4 | Round Table Pizza | 17 | 0.3% | $13M | |
| 5 | It's Boba Time | 17 | 0.3% | $10.2M | |
| 6 | Papa John's | 17 | 0.3% | $9.7M | |
| 7 | Right at Home | 15 | 0.3% | $11.9M | |
| 8 | Baskin-Robbins | 15 | 0.3% | $4.2M | |
| 9 | AM/PM Mini-Mart | 14 | 0.3% | $42.8M | |
| 10 | Boyett Petroleum | 14 | 0.3% | $33.4M | |
| 11 | Chevron | 13 | 0.3% | $30.2M | |
| 12 | Circle K | 13 | 0.3% | $16.4M | |
| 13 | Paris Baguette | 13 | 0.3% | $13.8M | |
| 14 | Mountain Mike's Pizza | 13 | 0.3% | $7M | |
| 15 | Home Instead | 12 | 0.2% | $10M |
Acquisitions by industry in California
The 20 industries with the most acquisition loans in California (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
Questions buyers ask
How much do buyers borrow to buy a business in California?
The median SBA 7(a) acquisition loan in California was $600,000 across 5,184 loans (FY2018 to FY2026), 7% lower than the $645,250 national median. The middle half of loans ran from $296,225 to $1,395,000. 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 California?
Live Oak Banking Company (572), Bank of Hope (261), Open Bank (255), Plumas Bank (212), Celtic Bank Corporation (196). Live Oak Banking Company alone accounts for 11% of California acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in California?
Full-Service Restaurants (420), Beer, Wine, and Liquor Retailers (399), Limited-Service Restaurants (338), Gasoline Stations with Convenience Stores (246), Hotels (except Casino Hotels) and Motels (150). The top three industries make up 22% of the state's acquisition loans.
How often do SBA acquisition loans fail in California?
In the seasoned cohort (FY2018 to FY2021), among 2,250 California acquisition loans: 4.1% charged off, 17% higher than the 3.5% national acquisition average.
How does California compare with other states?
California ranks number 1 of 54 states and territories by acquisition loan count, with 10.6% of national volume (5,184 of 48,902 loans) and $5.6B approved. Browse the full state ranking.
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Related
- Full-Service Restaurants nationally
- Beer, Wine, and Liquor Retailers nationally
- Limited-Service Restaurants nationally
- Live Oak Banking Company
- Bank of Hope
- Open Bank
- All states
- Buyer's guide to the data
State is the project state recorded by the lender (where the acquired business operates), not the borrower's mailing state.