The key finding
Across FY2020 to FY2026, the SBA approved 403,581 loans totaling $231.3 billion in capital, with an average loan size of $573,000 and a cumulative charge-off rate of 1.51% (SBA 7(a)/504 FOIA, as of 2025-12-31). Annual loan volume grew from 49,417 in FY2020 to 84,840 in FY2025, a 72% increase over five fiscal years. The median loan size, however, compressed from $350,000 in FY2021 to $150,000 in FY2024, signaling a structural shift toward smaller-dollar approvals rather than simply more of the same deals.
| Fiscal Year | SBA Loans Approved | Total Capital Approved | Median Loan Size | Charge-Off (Default) Rate |
|---|---|---|---|---|
| FY2020 | 49,417 | $28.4B | $250K | 2.95% |
| FY2021 | 61,532 | $44.8B | $350K | 1.86% |
| FY2022 | 56,932 | $34.9B | $255K | 2.56% |
| FY2023 | 63,286 | $33.9B | $200K | 2.02% |
| FY2024 | 76,235 | $37.8B | $150K | 0.45% |
| FY2025 | 84,840 | $45.1B | $200K | 0.01% |
| FY2026 (partial) | 11,339 | $6.4B | $217K | 0.00% (unseasoned) |
Methodology and source
This study draws on the SBA 7(a) and 504 FOIA data release covering all approved loans from FY2020 through the partial FY2026 period, as of 2025-12-31. The dataset contains 403,581 loan records in aggregate; no individual borrower records are included or analyzed. Default rate is computed as charge-offs divided by total disbursed loans within each fiscal year cohort. FY2026 contains only a partial year of originations (11,339 loans through the source date) and its 0.00% charge-off rate reflects an unseasoned cohort, not a structural improvement; that figure should not be compared directly to completed fiscal years. All figures are cited verbatim from SBA 7(a)/504 FOIA, as of 2025-12-31.
Loan Volume Grew Steadily After FY2022, Reaching a Dataset High in FY2025
Annual SBA loan approvals did not follow a straight line across this period. Volume rose from 49,417 in FY2020 to 61,532 in FY2021, then pulled back to 56,932 in FY2022 before resuming growth. From FY2022 onward, approvals climbed each year: 63,286 in FY2023, 76,235 in FY2024, and 84,840 in FY2025. That FY2025 figure is the highest single-year count in this dataset.
The FY2021 spike in total capital approved ($44.8 billion) stands out relative to loan count. That year's median loan size of $350,000 was the highest in the dataset, suggesting that FY2021 approvals skewed toward larger deals, possibly reflecting pandemic-era economic injury and recovery programs that temporarily inflated average deal size. By FY2023 and FY2024, median loan size had compressed to $200,000 and $150,000 respectively, even as volume accelerated, which points to a broadening of SBA access toward smaller borrowers rather than a concentration in large transactions.
The Median Loan Size Compression Tells a Different Story Than Volume Alone
Total capital approved and loan count do not move in lockstep, and the gap between them reveals something important about who is actually receiving SBA funds. In FY2021, 61,532 loans produced $44.8 billion in approvals, a median of $350,000 per deal. By FY2024, 76,235 loans produced only $37.8 billion, with a median of $150,000. More loans, less total capital, and a dramatically smaller typical deal.
This compression continued into FY2025, where 84,840 loans totaled $45.1 billion at a median of $200,000. The FY2025 median rebounded modestly from FY2024's $150,000 low, but remains well below the FY2021 peak. For borrowers and advisors, this pattern matters: the SBA pipeline in recent years has been dominated by smaller-dollar requests, which means the program is increasingly relevant to businesses that might otherwise turn to alternative financing products. For context on how SBA loans compare to those alternatives, see the mca-vs-sba-loan comparison page.
Charge-Off Rates Peaked in FY2020 and Have Declined, With Important Caveats
The FY2020 cohort carries the highest charge-off rate in this dataset at 2.95%, followed by FY2022 at 2.56%. FY2021 sits at 1.86%, and FY2023 at 2.02%. These four completed cohorts cluster in a 2.02% to 2.95% range, which is the realistic baseline for seasoned SBA default risk across this period.
FY2024's 0.45% rate and FY2025's 0.01% rate look dramatically lower, but they require careful interpretation. Charge-offs on recently originated loans take time to materialize. A loan approved in FY2024 or FY2025 that eventually defaults may not appear as a charge-off until FY2026 or later. These cohorts are unseasoned as of the source date (2025-12-31), and their apparent low default rates almost certainly understate eventual losses. The FY2026 partial-year figure of 0.00% is entirely unseasoned and should be treated as a data artifact, not a performance signal. The cumulative charge-off rate across all cohorts is 1.51% (SBA 7(a)/504 FOIA, as of 2025-12-31).
What These Trends Mean for Businesses Evaluating SBA Financing Today
The data shows an SBA program that has expanded access, particularly for smaller-dollar borrowers, while maintaining a cumulative charge-off rate of 1.51% across 403,581 loans and $231.3 billion in capital (SBA 7(a)/504 FOIA, as of 2025-12-31). For a business owner evaluating financing options, a few practical observations follow from the data.
First, the median loan size of $150,000 to $200,000 in FY2024 and FY2025 suggests SBA lenders are actively approving deals in a range that many owners assume is too small for the program. Second, the volume growth from FY2022 onward indicates lender appetite has been expanding, not contracting. Third, the seasoned default rates from FY2020 to FY2023 (2.02% to 2.95%) are the honest benchmark for underwriting risk; the near-zero rates in FY2024 and FY2025 will likely rise as those cohorts age.
Businesses that do not qualify for SBA terms, or need capital faster than the SBA timeline allows, have other options including term loans, business lines of credit, and revenue-based funding. A broker that shops a file across multiple funders can identify which product fits the actual situation. See the types-of-small-business-financing page for a full comparison.
Key takeaways
SBA loan volume reached 84,840 approvals in FY2025, up 72% from 49,417 in FY2020, the highest annual count in this dataset (SBA 7(a)/504 FOIA, as of 2025-12-31).
The median SBA loan size compressed from $350,000 in FY2021 to $150,000 in FY2024, indicating the program has shifted toward smaller-dollar borrowers even as total volume grew (SBA 7(a)/504 FOIA, as of 2025-12-31).
The cumulative charge-off rate across 403,581 loans and $231.3 billion in approved capital is 1.51%; the four fully seasoned cohorts (FY2020 to FY2023) show rates ranging from 2.02% to 2.95%, which is the realistic default baseline for SBA lending in this period (SBA 7(a)/504 FOIA, as of 2025-12-31).
FY2024 and FY2025 charge-off rates of 0.45% and 0.01% respectively are unseasoned and will likely rise as those cohorts age; they should not be read as evidence of a structural improvement in credit quality (SBA 7(a)/504 FOIA, as of 2025-12-31).
FY2021 produced the largest total capital approved in any single year at $44.8 billion, driven by a median loan size of $350,000, the highest in the dataset, while FY2025 surpassed it in loan count (84,840) at a much smaller median of $200,000 (SBA 7(a)/504 FOIA, as of 2025-12-31).