SBA loans in Texas: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 4,080 7(a) loans to buy an existing business in Texas, totaling $5.5B. The median loan was $870,000, 35% higher than the $645,250 national median for SBA-financed acquisitions. Volume rose 42% from FY2024 to FY2026.
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SBA lenders in Texas
The lenders that made the most SBA 7(a) acquisition loans in Texas, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 490 | 12.0% | $692M | |
| 2 | The Huntington National Bank | 259 | 6.3% | $257M | |
| 3 | Metro City Bank | 124 | 3.0% | $251M | |
| 4 | Wells Fargo Bank National Association | 98 | 2.4% | $55.3M | |
| 5 | Celtic Bank Corporation | 92 | 2.3% | $122M | |
| 6 | Prosperity Bank | 86 | 2.1% | $106M | |
| 7 | Midwest Regional Bank | 85 | 2.1% | $64.5M | |
| 8 | Bank of Hope | 84 | 2.1% | $98M | |
| 9 | Open Bank | 76 | 1.9% | $165M | |
| 10 | First Internet Bank of Indiana | 72 | 1.8% | $87.3M |
What this tells a buyer
- Deal size band. Half of Texas acquisition loans fell between $384,025 and $1,883,250. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Texas accounts for 8.3% of all SBA acquisition loans and ranks number 2 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (268 loans, 7% of the state). The top three industries together are 18%.
- Lender concentration. Live Oak Banking Company made 12% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 24% of acquisition loans in Texas involved a franchised brand; the most frequent is Best Western (23 loans).
Texas acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 346 | $427M | $677,400 | |
| FY2019 | 530 | $599M | $696,500 | |
| FY2020 | 403 | $497M | $835,000 | |
| FY2021 | 454 | $630M | $967,500 | |
| FY2022 | 349 | $513M | $1,012,000 | |
| FY2023 | 317 | $436M | $956,000 | |
| FY2024 | 445 | $609M | $860,000 | |
| FY2025 | 604 | $805M | $840,750 | |
| FY2026 | 632 | $970M | $1,000,000 |
How often do these acquisition loans fail?
Of the 1,733 Texas acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 83 have been charged off by the SBA, a rate of 4.8% by loan count and 2.6% by dollars. 864 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 Texas is 36% 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 Texas
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 268 | 6.6% | $840M | |
| 2 | Gasoline Stations with Convenience Stores | 252 | 6.2% | $451M | |
| 3 | Full-Service Restaurants | 230 | 5.6% | $194M | |
| 4 | Limited-Service Restaurants | 145 | 3.6% | $109M | |
| 5 | Child Care Services | 124 | 3.0% | $233M | |
| 6 | General Automotive Repair | 112 | 2.7% | $112M | |
| 7 | Insurance Agencies and Brokerages | 108 | 2.6% | $125M | |
| 8 | Plumbing, Heating, and Air-Conditioning Contractors | 85 | 2.1% | $84.8M | |
| 9 | Home Health Care Services | 76 | 1.9% | $82M | |
| 10 | Beer, Wine, and Liquor Retailers | 70 | 1.7% | $85.2M |
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Franchise brands bought in Texas
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Best Western | 23 | 0.6% | $71.9M | |
| 2 | Holiday Inn Express | 19 | 0.5% | $77.3M | |
| 3 | La Quinta | 19 | 0.5% | $76.3M | |
| 4 | Classic Star Group (Distributor) | 19 | 0.5% | $29.3M | |
| 5 | Primrose Schools | 17 | 0.4% | $53M | |
| 6 | SEI Fuel Services | 16 | 0.4% | $31.5M | |
| 7 | Home Instead | 16 | 0.4% | $9.7M | |
| 8 | Motel 6 | 15 | 0.4% | $35.8M | |
| 9 | Sunoco | 13 | 0.3% | $27.1M | |
| 10 | Servpro | 12 | 0.3% | $7.3M | |
| 11 | Comfort Inn | 11 | 0.3% | $44.7M | |
| 12 | Comfort Suites | 11 | 0.3% | $42.4M | |
| 13 | Days Inn | 11 | 0.3% | $31.8M | |
| 14 | The UPS Store | 11 | 0.3% | $6.6M | |
| 15 | Anytime Fitness | 11 | 0.3% | $4.5M |
Acquisitions by industry in Texas
The 20 industries with the most acquisition loans in Texas (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 Texas?
The median SBA 7(a) acquisition loan in Texas was $870,000 across 4,080 loans (FY2018 to FY2026), 35% higher than the $645,250 national median. The middle half of loans ran from $384,025 to $1,883,250. 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 Texas?
Live Oak Banking Company (490), The Huntington National Bank (259), Metro City Bank (124), Wells Fargo Bank National Association (98), Celtic Bank Corporation (92). Live Oak Banking Company alone accounts for 12% of Texas acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Texas?
Hotels (except Casino Hotels) and Motels (268), Gasoline Stations with Convenience Stores (252), Full-Service Restaurants (230), Limited-Service Restaurants (145), Child Care Services (124). The top three industries make up 18% of the state's acquisition loans.
How often do SBA acquisition loans fail in Texas?
In the seasoned cohort (FY2018 to FY2021), among 1,733 Texas acquisition loans: 4.8% charged off, 36% higher than the 3.5% national acquisition average.
How does Texas compare with other states?
Texas ranks number 2 of 54 states and territories by acquisition loan count, with 8.3% of national volume (4,080 of 48,902 loans) and $5.5B approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Gasoline Stations with Convenience Stores nationally
- Full-Service Restaurants nationally
- Live Oak Banking Company
- The Huntington National Bank
- Metro City 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.