SBA loans in Pennsylvania: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,765 7(a) loans to buy an existing business in Pennsylvania, totaling $1.7B. The median loan was $535,000, 17% lower than the $645,250 national median for SBA-financed acquisitions. Volume rose 26% from FY2024 to FY2026.
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SBA lenders in Pennsylvania
The lenders that made the most SBA 7(a) acquisition loans in Pennsylvania, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 140 | 7.9% | $202M | |
| 2 | The Huntington National Bank | 126 | 7.1% | $78M | |
| 3 | Beacon Bank and Trust | 107 | 6.1% | $131M | |
| 4 | Northwest Bank | 107 | 6.1% | $44.9M | |
| 5 | First Commonwealth Bank | 93 | 5.3% | $72.1M | |
| 6 | Manufacturers and Traders Trust Company | 81 | 4.6% | $37.7M | |
| 7 | Wilmington Savings Fund Society FSB | 78 | 4.4% | $92.6M | |
| 8 | Fulton Bank, National Association | 46 | 2.6% | $54.9M | |
| 9 | First National Bank of Pennsylvania | 44 | 2.5% | $29.5M | |
| 10 | PNC Bank, National Association | 44 | 2.5% | $28M |
What this tells a buyer
- Deal size band. Half of Pennsylvania acquisition loans fell between $229,000 and $1,282,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Pennsylvania accounts for 3.6% of all SBA acquisition loans and ranks number 10 of 54 states and territories by count.
- Industry concentration. Full-Service Restaurants is the most financed business type here (108 loans, 6% of the state). The top three industries together are 15%.
- Lender concentration. Live Oak Banking Company made 8% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 15% of acquisition loans in Pennsylvania involved a franchised brand; the most frequent is The UPS Store (17 loans).
Pennsylvania acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 143 | $154M | $404,100 | |
| FY2019 | 208 | $174M | $413,000 | |
| FY2020 | 179 | $154M | $511,900 | |
| FY2021 | 199 | $196M | $565,000 | |
| FY2022 | 164 | $150M | $470,000 | |
| FY2023 | 157 | $133M | $445,000 | |
| FY2024 | 202 | $192M | $500,000 | |
| FY2025 | 258 | $284M | $649,000 | |
| FY2026 | 255 | $279M | $700,000 |
How often do these acquisition loans fail?
Of the 729 Pennsylvania acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 15 have been charged off by the SBA, a rate of 2.1% by loan count and 0.6% by dollars. 383 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 Pennsylvania is 41% 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 Pennsylvania
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 108 | 6.1% | $87.5M | |
| 2 | Limited-Service Restaurants | 98 | 5.6% | $40.1M | |
| 3 | Hotels (except Casino Hotels) and Motels | 60 | 3.4% | $180M | |
| 4 | Beer, Wine, and Liquor Retailers | 51 | 2.9% | $37.9M | |
| 5 | Plumbing, Heating, and Air-Conditioning Contractors | 47 | 2.7% | $53.2M | |
| 6 | General Automotive Repair | 38 | 2.2% | $30.8M | |
| 7 | Landscaping Services | 38 | 2.2% | $27.3M | |
| 8 | All Other Specialty Trade Contractors | 37 | 2.1% | $46.6M | |
| 9 | Snack and Nonalcoholic Beverage Bars | 32 | 1.8% | $14M | |
| 10 | Funeral Homes and Funeral Services | 31 | 1.8% | $41.6M |
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Franchise brands bought in Pennsylvania
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 17 | 1.0% | $8.1M | |
| 2 | LORDS & LADIES | 14 | 0.8% | $4.3M | |
| 3 | Subway | 12 | 0.7% | $2.8M | |
| 4 | Rita's Ice-Custard-Happiness | 9 | 0.5% | $2.2M | |
| 5 | Edible Arrangements | 7 | 0.4% | $2.3M | |
| 6 | Best Western | 6 | 0.3% | $20.9M | |
| 7 | Home Instead | 6 | 0.3% | $5.5M | |
| 8 | Red Roof Inn | 5 | 0.3% | $14.5M | |
| 9 | Domino's Pizza | 5 | 0.3% | $3.7M | |
| 10 | Wayback Burgers | 5 | 0.3% | $620K | |
| 11 | Super 8 | 4 | 0.2% | $6.2M | |
| 12 | Little Caesars | 4 | 0.2% | $2.7M | |
| 13 | FASTSIGNS | 4 | 0.2% | $1.2M | |
| 14 | Country Inn and Suites by Radisson | 3 | 0.2% | $13.1M | |
| 15 | Comfort Inn | 3 | 0.2% | $12.3M |
Acquisitions by industry in Pennsylvania
The 20 industries with the most acquisition loans in Pennsylvania (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Full-Service Restaurants | 108 | $407,000 | 2.5% |
| Limited-Service Restaurants | 98 | $255,750 | 12.5% |
| Hotels and Motels | 60 | $2,731,500 | 0.0% |
| Beer, Wine, and Liquor Retailers | 51 | $610,000 | 0.0% |
| Plumbing, Heating, and Air-Conditioning Contractors | 47 | $625,000 | n/a |
| Landscaping Services | 38 | $376,500 | n/a |
| General Automotive Repair | 38 | $530,000 | n/a |
| All Other Specialty Trade Contractors | 37 | $500,000 | n/a |
| Snack and Nonalcoholic Beverage Bars | 32 | $284,750 | n/a |
| Funeral Homes and Funeral Services | 31 | $1,025,000 | n/a |
| Beauty Salons | 31 | $155,600 | 0.0% |
| Child Care Services | 30 | $460,000 | n/a |
| Drinking Places (Alcoholic Beverages) | 30 | $272,500 | n/a |
| Couriers and Express Delivery Services | 27 | $721,700 | n/a |
| Home Health Care Services | 27 | $995,000 | n/a |
| Offices of Chiropractors | 21 | $288,000 | n/a |
| Drycleaning and Laundry Services | 20 | $337,150 | n/a |
| Fitness and Recreational Sports Centers | 19 | $350,000 | n/a |
| Pharmacies and Drug Retailers | 19 | $860,000 | n/a |
| Commercial Printing | 17 | $425,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Pennsylvania?
The median SBA 7(a) acquisition loan in Pennsylvania was $535,000 across 1,765 loans (FY2018 to FY2026), 17% lower than the $645,250 national median. The middle half of loans ran from $229,000 to $1,282,000. 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 Pennsylvania?
Live Oak Banking Company (140), The Huntington National Bank (126), Beacon Bank and Trust (107), Northwest Bank (107), First Commonwealth Bank (93). Live Oak Banking Company alone accounts for 8% of Pennsylvania acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Pennsylvania?
Full-Service Restaurants (108), Limited-Service Restaurants (98), Hotels (except Casino Hotels) and Motels (60), Beer, Wine, and Liquor Retailers (51), Plumbing, Heating, and Air-Conditioning Contractors (47). The top three industries make up 15% of the state's acquisition loans.
How often do SBA acquisition loans fail in Pennsylvania?
In the seasoned cohort (FY2018 to FY2021), among 729 Pennsylvania acquisition loans: 2.1% charged off, 41% lower than the 3.5% national acquisition average.
How does Pennsylvania compare with other states?
Pennsylvania ranks number 10 of 54 states and territories by acquisition loan count, with 3.6% of national volume (1,765 of 48,902 loans) and $1.7B approved. Browse the full state ranking.
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Related
- Full-Service Restaurants nationally
- Limited-Service Restaurants nationally
- Hotels (except Casino Hotels) and Motels nationally
- Live Oak Banking Company
- The Huntington National Bank
- Beacon Bank and Trust
- 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.