SBA loans in District of Columbia: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 91 7(a) loans to buy an existing business in District of Columbia, totaling $86.6M. The median loan was $600,000, 7% lower than the $645,250 national median for SBA-financed acquisitions. Volume rose 50% from FY2024 to FY2026.
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SBA lenders in District of Columbia
The lenders that made the most SBA 7(a) acquisition loans in District of Columbia, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hanmi Bank | 25 | 27.5% | $19.5M | |
| 2 | The Huntington National Bank | 16 | 17.6% | $7.7M | |
| 3 | Manufacturers and Traders Trust Company | 10 | 11.0% | $8.8M | |
| 4 | Live Oak Banking Company | 4 | 4.4% | $5.8M | |
| 5 | Newtek Bank, National Association | 3 | 3.3% | $2.1M | |
| 6 | Wilmington Savings Fund Society FSB | 3 | 3.3% | $1.6M | |
| 7 | Stearns Bank National Association | 3 | 3.3% | $1M | |
| 8 | Celtic Bank Corporation | 2 | 2.2% | $3M | |
| 9 | Beacon Bank and Trust | 2 | 2.2% | $2.7M | |
| 10 | PNC Bank, National Association | 2 | 2.2% | $2M |
What this tells a buyer
- Deal size band. Half of District of Columbia acquisition loans fell between $327,500 and $1,222,500. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. District of Columbia accounts for 0.2% of all SBA acquisition loans and ranks number 49 of 54 states and territories by count.
- Industry concentration. Beer, Wine, and Liquor Retailers is the most financed business type here (34 loans, 37% of the state). The top three industries together are 47%.
- Lender concentration. Hanmi Bank made 27% of the state's acquisition loans. A single lender carries a large part of the market, so it is worth knowing what it prefers to finance.
- Franchise resales. 5% of acquisition loans in District of Columbia involved a franchised brand; the most frequent is Ace Hardware (2 loans).
District of Columbia acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $3.1M | $583,500 | |
| FY2019 | 8 | $4.1M | $425,000 | |
| FY2020 | 6 | $3.5M | $485,000 | |
| FY2021 | 6 | $7.3M | $790,000 | |
| FY2022 | 10 | $7.9M | $589,500 | |
| FY2023 | 13 | $15.5M | $585,000 | |
| FY2024 | 10 | $12.1M | $580,000 | |
| FY2025 | 17 | $13.7M | $765,000 | |
| FY2026 | 15 | $19.4M | $590,000 |
How often do these acquisition loans fail?
Of the 26 District of Columbia acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 7.7% by loan count and 3.4% by dollars. 9 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 District of Columbia is 118% 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 District of Columbia
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 34 | 37.4% | $25.6M | |
| 2 | Limited-Service Restaurants | 5 | 5.5% | $2.9M | |
| 3 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 4.4% | $2M | |
| 4 | Full-Service Restaurants | 4 | 4.4% | $746K | |
| 5 | Commercial and Institutional Building Construction | 3 | 3.3% | $5.9M | |
| 6 | Drinking Places (Alcoholic Beverages) | 3 | 3.3% | $1.2M | |
| 7 | Fitness and Recreational Sports Centers | 2 | 2.2% | $5.1M | |
| 8 | Sign Manufacturing | 2 | 2.2% | $4.5M | |
| 9 | Administrative Management and General Management Consulting Services | 2 | 2.2% | $2.4M | |
| 10 | Hobby, Toy, and Game Retailers | 2 | 2.2% | $2M |
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Franchise brands bought in District of Columbia
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ace Hardware | 2 | 2.2% | $1.3M |
Acquisitions by industry in District of Columbia
The 1 industry with the most acquisition loans in District of Columbia (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Beer, Wine, and Liquor Retailers | 34 | $650,500 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in District of Columbia?
The median SBA 7(a) acquisition loan in District of Columbia was $600,000 across 91 loans (FY2018 to FY2026), 7% lower than the $645,250 national median. The middle half of loans ran from $327,500 to $1,222,500. 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 District of Columbia?
Hanmi Bank (25), The Huntington National Bank (16), Manufacturers and Traders Trust Company (10), Live Oak Banking Company (4), Newtek Bank, National Association (3). Hanmi Bank alone accounts for 27% of District of Columbia acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in District of Columbia?
Beer, Wine, and Liquor Retailers (34), Limited-Service Restaurants (5), Drycleaning and Laundry Services (except Coin-Operated) (4), Full-Service Restaurants (4), Commercial and Institutional Building Construction (3). The top three industries make up 47% of the state's acquisition loans.
How often do SBA acquisition loans fail in District of Columbia?
In the seasoned cohort (FY2018 to FY2021), among 26 District of Columbia acquisition loans: 7.7% charged off, 118% higher than the 3.5% national acquisition average.
How does District of Columbia compare with other states?
District of Columbia ranks number 49 of 54 states and territories by acquisition loan count, with 0.2% of national volume (91 of 48,902 loans) and $86.6M approved. Browse the full state ranking.
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Related
- Beer, Wine, and Liquor Retailers nationally
- Limited-Service Restaurants nationally
- Drycleaning and Laundry Services (except Coin-Operated) nationally
- Hanmi Bank
- The Huntington National Bank
- Manufacturers and Traders Trust Company
- 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.