SBA loans in Michigan: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,680 7(a) loans to buy an existing business in Michigan, totaling $1.7B. The median loan was $585,000, 9% lower than the $645,250 national median for SBA-financed acquisitions. Volume rose 20% from FY2024 to FY2026.
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SBA lenders in Michigan
The lenders that made the most SBA 7(a) acquisition loans in Michigan, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 360 | 21.4% | $247M | |
| 2 | Live Oak Banking Company | 131 | 7.8% | $192M | |
| 3 | Fifth Third Bank | 85 | 5.1% | $125M | |
| 4 | Old National Bank | 68 | 4.0% | $86M | |
| 5 | ChoiceOne Bank | 55 | 3.3% | $36.3M | |
| 6 | Byline Bank | 47 | 2.8% | $62.3M | |
| 7 | First Internet Bank of Indiana | 39 | 2.3% | $49.6M | |
| 8 | Nicolet National Bank | 37 | 2.2% | $35.3M | |
| 9 | Horizon Bank | 37 | 2.2% | $23M | |
| 10 | United FCU | 34 | 2.0% | $29.3M |
What this tells a buyer
- Deal size band. Half of Michigan acquisition loans fell between $250,000 and $1,304,625. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Michigan accounts for 3.4% of all SBA acquisition loans and ranks number 11 of 54 states and territories by count.
- Industry concentration. Beer, Wine, and Liquor Retailers is the most financed business type here (99 loans, 6% of the state). The top three industries together are 17%.
- Lender concentration. The Huntington National Bank made 21% 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. 17% of acquisition loans in Michigan involved a franchised brand; the most frequent is Little Caesars (15 loans).
Michigan acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 145 | $117M | $379,700 | |
| FY2019 | 203 | $162M | $463,000 | |
| FY2020 | 179 | $170M | $479,400 | |
| FY2021 | 209 | $254M | $850,000 | |
| FY2022 | 119 | $149M | $725,000 | |
| FY2023 | 129 | $114M | $639,300 | |
| FY2024 | 201 | $202M | $510,000 | |
| FY2025 | 254 | $229M | $523,200 | |
| FY2026 | 241 | $260M | $742,500 |
How often do these acquisition loans fail?
Of the 736 Michigan acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 13 have been charged off by the SBA, a rate of 1.8% by loan count and 1.4% by dollars. 361 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 Michigan is 50% lower 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 Michigan
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 99 | 5.9% | $94.6M | |
| 2 | Full-Service Restaurants | 96 | 5.7% | $56.9M | |
| 3 | Limited-Service Restaurants | 95 | 5.7% | $68.7M | |
| 4 | Hotels (except Casino Hotels) and Motels | 69 | 4.1% | $169M | |
| 5 | Plumbing, Heating, and Air-Conditioning Contractors | 36 | 2.1% | $40.2M | |
| 6 | Landscaping Services | 34 | 2.0% | $19.5M | |
| 7 | General Automotive Repair | 32 | 1.9% | $24.1M | |
| 8 | Offices of Chiropractors | 31 | 1.8% | $8.2M | |
| 9 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 30 | 1.8% | $36.1M | |
| 10 | Offices of Dentists | 24 | 1.4% | $24M |
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Franchise brands bought in Michigan
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Little Caesars | 15 | 0.9% | $14.9M | |
| 2 | Jet's Pizza | 9 | 0.5% | $4.2M | |
| 3 | Quality Inn | 8 | 0.5% | $29.9M | |
| 4 | Best Western | 7 | 0.4% | $20.7M | |
| 5 | Domino's Pizza | 7 | 0.4% | $5.7M | |
| 6 | Subway | 7 | 0.4% | $2.9M | |
| 7 | Ace Hardware | 6 | 0.4% | $7.6M | |
| 8 | Anytime Fitness | 6 | 0.4% | $3.8M | |
| 9 | Biggby Coffee | 6 | 0.4% | $2.7M | |
| 10 | Red Roof Inn | 5 | 0.3% | $16.9M | |
| 11 | The UPS Store | 5 | 0.3% | $2.7M | |
| 12 | Martinizing Cleaners | 5 | 0.3% | $2M | |
| 13 | Tuffy Tire & Auto Service | 4 | 0.2% | $4.6M | |
| 14 | Midas | 4 | 0.2% | $3.4M | |
| 15 | Dairy Queen | 4 | 0.2% | $2.7M |
Acquisitions by industry in Michigan
The 20 industries with the most acquisition loans in Michigan (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 | 99 | $851,000 | 0.0% |
| Full-Service Restaurants | 96 | $414,250 | 2.8% |
| Limited-Service Restaurants | 95 | $360,000 | 0.0% |
| Hotels and Motels | 69 | $2,125,000 | 2.9% |
| Plumbing, Heating, and Air-Conditioning Contractors | 36 | $575,000 | n/a |
| Landscaping Services | 34 | $344,200 | n/a |
| General Automotive Repair | 32 | $624,000 | n/a |
| Offices of Chiropractors | 31 | $207,000 | n/a |
| Supermarkets and Other Grocery Retailers | 30 | $907,500 | n/a |
| Offices of Dentists | 24 | $707,500 | n/a |
| Fitness and Recreational Sports Centers | 21 | $188,500 | n/a |
| Insurance Agencies and Brokerages | 21 | $1,452,500 | n/a |
| Pharmacies and Drug Retailers | 20 | $1,405,000 | n/a |
| Convenience Retailers | 20 | $503,750 | n/a |
| All Other Specialty Trade Contractors | 19 | $733,000 | n/a |
| Car Washes | 19 | $688,300 | n/a |
| Drinking Places (Alcoholic Beverages) | 19 | $279,200 | n/a |
| Home Health Care Services | 19 | $375,000 | n/a |
| Funeral Homes and Funeral Services | 18 | $1,223,500 | n/a |
| Automotive Body, Paint, and Interior Repair and Maintenance | 16 | $392,350 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Michigan?
The median SBA 7(a) acquisition loan in Michigan was $585,000 across 1,680 loans (FY2018 to FY2026), 9% lower than the $645,250 national median. The middle half of loans ran from $250,000 to $1,304,625. 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 Michigan?
The Huntington National Bank (360), Live Oak Banking Company (131), Fifth Third Bank (85), Old National Bank (68), ChoiceOne Bank (55). The Huntington National Bank alone accounts for 21% of Michigan acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Michigan?
Beer, Wine, and Liquor Retailers (99), Full-Service Restaurants (96), Limited-Service Restaurants (95), Hotels (except Casino Hotels) and Motels (69), Plumbing, Heating, and Air-Conditioning Contractors (36). The top three industries make up 17% of the state's acquisition loans.
How often do SBA acquisition loans fail in Michigan?
In the seasoned cohort (FY2018 to FY2021), among 736 Michigan acquisition loans: 1.8% charged off, 50% lower than the 3.5% national acquisition average.
How does Michigan compare with other states?
Michigan ranks number 11 of 54 states and territories by acquisition loan count, with 3.4% of national volume (1,680 of 48,902 loans) and $1.7B approved. Browse the full state ranking.
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Related
- Beer, Wine, and Liquor Retailers nationally
- Full-Service Restaurants nationally
- Limited-Service Restaurants nationally
- The Huntington National Bank
- Live Oak Banking Company
- Fifth Third 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.