SBA loans in Tennessee: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 624 7(a) loans to buy an existing business in Tennessee, totaling $763M. The median loan was $807,000, 25% higher than the $645,250 national median for SBA-financed acquisitions. Volume rose 111% from FY2024 to FY2026.
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SBA lenders in Tennessee
The lenders that made the most SBA 7(a) acquisition loans in Tennessee, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 58 | 9.3% | $85.1M | |
| 2 | Pinnacle Bank | 52 | 8.3% | $58.8M | |
| 3 | The Huntington National Bank | 50 | 8.0% | $44.2M | |
| 4 | Old National Bank | 24 | 3.8% | $22.3M | |
| 5 | First Horizon Bank | 23 | 3.7% | $37.1M | |
| 6 | United Community Bank | 17 | 2.7% | $17.4M | |
| 7 | U.S. Bank, National Association | 15 | 2.4% | $10M | |
| 8 | Byline Bank | 14 | 2.2% | $14.7M | |
| 9 | First Financial Bank | 13 | 2.1% | $18.9M | |
| 10 | Celtic Bank Corporation | 12 | 1.9% | $13.7M |
What this tells a buyer
- Deal size band. Half of Tennessee acquisition loans fell between $350,000 and $1,701,750. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Tennessee accounts for 1.3% of all SBA acquisition loans and ranks number 25 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (49 loans, 8% of the state). The top three industries together are 16%.
- Lender concentration. Live Oak Banking Company made 9% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 28% of acquisition loans in Tennessee involved a franchised brand; the most frequent is Red Roof Inn (4 loans).
Tennessee acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 50 | $54.7M | $569,500 | |
| FY2019 | 58 | $68.6M | $697,950 | |
| FY2020 | 66 | $70M | $641,000 | |
| FY2021 | 76 | $101M | $854,200 | |
| FY2022 | 62 | $75.3M | $754,600 | |
| FY2023 | 47 | $62.2M | $841,600 | |
| FY2024 | 53 | $76.7M | $999,000 | |
| FY2025 | 100 | $131M | $863,000 | |
| FY2026 | 112 | $124M | $842,450 |
How often do these acquisition loans fail?
Of the 250 Tennessee acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 7 have been charged off by the SBA, a rate of 2.8% by loan count and 1.5% by dollars. 135 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 Tennessee is 20% 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 Tennessee
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 49 | 7.9% | $135M | |
| 2 | Limited-Service Restaurants | 29 | 4.6% | $25.6M | |
| 3 | Full-Service Restaurants | 24 | 3.8% | $17.7M | |
| 4 | Insurance Agencies and Brokerages | 16 | 2.6% | $14.5M | |
| 5 | Broilers and Other Meat Type Chicken Production | 14 | 2.2% | $23.8M | |
| 6 | Offices of Certified Public Accountants | 14 | 2.2% | $14.3M | |
| 7 | All Other Specialty Trade Contractors | 14 | 2.2% | $13.2M | |
| 8 | Fitness and Recreational Sports Centers | 14 | 2.2% | $10.2M | |
| 9 | Plumbing, Heating, and Air-Conditioning Contractors | 12 | 1.9% | $12.1M | |
| 10 | Landscaping Services | 12 | 1.9% | $10.6M |
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Franchise brands bought in Tennessee
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Red Roof Inn | 4 | 0.6% | $11.3M | |
| 2 | Baymont | 4 | 0.6% | $11.1M | |
| 3 | Comfort Inn | 4 | 0.6% | $10.9M | |
| 4 | Days Inn | 4 | 0.6% | $8.9M | |
| 5 | Health Mart Pharmacy | 4 | 0.6% | $5.8M | |
| 6 | The UPS Store | 4 | 0.6% | $2.3M | |
| 7 | Firehouse Subs | 4 | 0.6% | $1.4M | |
| 8 | Motel 6 | 3 | 0.5% | $6.9M | |
| 9 | Zaxby's | 3 | 0.5% | $3.5M | |
| 10 | Culver's | 3 | 0.5% | $1.7M | |
| 11 | Any LabTest Now | 3 | 0.5% | $1.2M | |
| 12 | Precision Tune Auto Care | 3 | 0.5% | $1.2M | |
| 13 | Smartstyle | 3 | 0.5% | $729K | |
| 14 | Country Inn and Suites by Radisson | 2 | 0.3% | $8.7M | |
| 15 | Best Western | 2 | 0.3% | $8.1M |
Acquisitions by industry in Tennessee
The 11 industries with the most acquisition loans in Tennessee (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Hotels and Motels | 49 | $2,444,000 | 0.0% |
| Limited-Service Restaurants | 29 | $495,000 | n/a |
| Full-Service Restaurants | 24 | $519,550 | n/a |
| Insurance Agencies and Brokerages | 16 | $618,000 | n/a |
| All Other Specialty Trade Contractors | 14 | $492,000 | n/a |
| Offices of Certified Public Accountants | 14 | $732,750 | n/a |
| Fitness and Recreational Sports Centers | 14 | $452,500 | n/a |
| Broilers and Other Meat Type Chicken Production | 14 | $1,329,300 | n/a |
| General Automotive Repair | 12 | $752,850 | n/a |
| Landscaping Services | 12 | $361,300 | n/a |
| Plumbing, Heating, and Air-Conditioning Contractors | 12 | $863,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Tennessee?
The median SBA 7(a) acquisition loan in Tennessee was $807,000 across 624 loans (FY2018 to FY2026), 25% higher than the $645,250 national median. The middle half of loans ran from $350,000 to $1,701,750. 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 Tennessee?
Live Oak Banking Company (58), Pinnacle Bank (52), The Huntington National Bank (50), Old National Bank (24), First Horizon Bank (23). Live Oak Banking Company alone accounts for 9% of Tennessee acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Tennessee?
Hotels (except Casino Hotels) and Motels (49), Limited-Service Restaurants (29), Full-Service Restaurants (24), Insurance Agencies and Brokerages (16), Broilers and Other Meat Type Chicken Production (14). The top three industries make up 16% of the state's acquisition loans.
How often do SBA acquisition loans fail in Tennessee?
In the seasoned cohort (FY2018 to FY2021), among 250 Tennessee acquisition loans: 2.8% charged off, 20% lower than the 3.5% national acquisition average.
How does Tennessee compare with other states?
Tennessee ranks number 25 of 54 states and territories by acquisition loan count, with 1.3% of national volume (624 of 48,902 loans) and $763M approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Limited-Service Restaurants nationally
- Full-Service Restaurants nationally
- Live Oak Banking Company
- Pinnacle Bank
- The Huntington National 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.