SBA Franchise Loans by State: Per-Resident and Per-Business Index, 2021 to 2026
SBA franchise loans by state ranged from 3.55 franchise 7(a) loans per 100,000 residents a year in Utah to 0.36 in Hawaii (US 2.09) across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, in SBA FOIA data. The South led the regions and the Northeast trailed. Median loans ran largest where hotel lending is common.
SBA franchise loans by state: the per-resident index
This index ranks SBA franchise loans by state on a per-resident basis. Across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, the 50 states and DC averaged 2.09 franchise-coded SBA 7(a) loans and $1.68 million in approvals per 100,000 residents per year, according to the SBA 7(a) FOIA file as of 2026-06-30 and Census Bureau Vintage 2025 population estimates.
Utah ranked first at 3.55 loans per 100,000 residents per year, followed by Colorado (3.32), Texas (3.26), Idaho (3.07) and Georgia (3.01). Hawaii (0.36), Alaska (0.58), Vermont (0.60) and New York (0.87) ranked last. California, the second-largest state by franchise loan count (1,385 loans), ranked 37 of 51 per resident at 1.52.
On dollars, Texas led at $2.98 million per 100,000 residents per year, with Washington second ($2.77 million) because its loans are larger, not more numerous. A third-party ranking of all SBA lending from 2018 to 2022 also put Colorado first, at $653 per capita (ProjectionHub, 2023); that figure covers every SBA loan over five years and is not comparable with the franchise-only annual rates here.
| State | Census region | Franchise 7(a) loans, clean windows | Loans per 100,000 residents per year | Rank per resident | Dollars per 100,000 residents per year ($M) | Loans per 1,000 employer establishments per year | Rank per establishment | Franchise share of the state's 7(a) loans (%) | 2023 ABS franchise share of employer firms (%) |
|---|---|---|---|---|---|---|---|---|---|
| Utah | West | 284 | 3.55 | 1 | 1.85 | 1.28 | 2 | 13.9 | 4 |
| Colorado | West | 456 | 3.32 | 2 | 2.48 | 1.07 | 6 | 15.4 | 4 |
| Texas | South | 2,322 | 3.26 | 3 | 2.98 | 1.49 | 1 | 25.8 | 8.5 |
| Idaho | West | 141 | 3.07 | 4 | 1.65 | 1.04 | 10 | 12.2 | 4.4 |
| Georgia | South | 773 | 3.01 | 5 | 2.6 | 1.27 | 3 | 22.7 | 5.6 |
| Ohio | Midwest | 752 | 2.74 | 6 | 2 | 1.27 | 4 | 10.6 | 4.8 |
| Minnesota | Midwest | 352 | 2.63 | 7 | 1.5 | 0.98 | 11 | 11.2 | 4.7 |
| North Carolina | South | 660 | 2.61 | 8 | 2.28 | 1.1 | 5 | 24.6 | 5.7 |
| Delaware | South | 62 | 2.58 | 9 | 1.15 | 0.9 | 15 | 15.2 | 7 |
| Florida | South | 1,312 | 2.48 | 10 | 1.67 | 0.87 | 16 | 14.7 | 3.7 |
| Indiana | Midwest | 387 | 2.42 | 11 | 1.83 | 1.07 | 7 | 15.8 | 5.6 |
| South Carolina | South | 299 | 2.39 | 12 | 2.02 | 1.04 | 9 | 21.1 | 5.3 |
| Virginia | South | 452 | 2.22 | 13 | 1.73 | 0.92 | 14 | 21.6 | 4.7 |
| Michigan | Midwest | 518 | 2.21 | 14 | 1.39 | 0.97 | 12 | 11.2 | 4.4 |
| Tennessee | South | 367 | 2.21 | 15 | 1.51 | 1.05 | 8 | 24.6 | 6.8 |
| New Jersey | Northeast | 476 | 2.18 | 16 | 1.33 | 0.86 | 18 | 11.4 | 4.6 |
| Kansas | Midwest | 148 | 2.16 | 17 | 1.86 | 0.84 | 19 | 16.6 | 6.1 |
| Nebraska | Midwest | 98 | 2.12 | 18 | 1.3 | 0.75 | 25 | 14.4 | 5 |
| Arizona | West | 364 | 2.1 | 19 | 1.58 | 0.96 | 13 | 16 | 3.6 |
| Washington | West | 378 | 2.07 | 20 | 2.77 | 0.8 | 22 | 11.2 | 3.9 |
| Missouri | Midwest | 290 | 2.01 | 21 | 1.34 | 0.82 | 20 | 14.1 | 4.3 |
| Maryland | South | 287 | 1.99 | 22 | 1.35 | 0.86 | 17 | 13.4 | 4.7 |
| Oklahoma | South | 184 | 1.95 | 23 | 1.75 | 0.82 | 21 | 16.2 | 6.2 |
| Wisconsin | Midwest | 265 | 1.92 | 24 | 1.57 | 0.79 | 23 | 12.5 | 4.2 |
| Nevada | West | 141 | 1.89 | 25 | 1.17 | 0.78 | 24 | 11.9 | 3.3 |
| New Hampshire | Northeast | 61 | 1.87 | 26 | 1.25 | 0.67 | 33 | 6.5 | 5.8 |
| Iowa | Midwest | 139 | 1.86 | 27 | 1.09 | 0.72 | 28 | 18.4 | 5 |
| Wyoming | West | 25 | 1.84 | 28 | 1.82 | 0.45 | 44 | 11.6 | 6.1 |
| Connecticut | Northeast | 153 | 1.81 | 29 | 1.01 | 0.74 | 26 | 9.3 | 4.8 |
| North Dakota | Midwest | 33 | 1.8 | 30 | 2.27 | 0.56 | 38 | 14.9 | 5.1 |
| Illinois | Midwest | 528 | 1.79 | 31 | 1.61 | 0.7 | 29 | 13.2 | 4 |
| Pennsylvania | Northeast | 526 | 1.74 | 32 | 1.14 | 0.74 | 27 | 12.6 | 4.5 |
| South Dakota | Midwest | 35 | 1.64 | 33 | 0.81 | 0.52 | 42 | 12.7 | 5.3 |
| Montana | West | 42 | 1.6 | 34 | 1.59 | 0.42 | 45 | 11 | 4.4 |
| Louisiana | South | 167 | 1.56 | 35 | 1.65 | 0.66 | 34 | 19.4 | 4.7 |
| Rhode Island | Northeast | 39 | 1.52 | 36 | 0.84 | 0.57 | 37 | 9.5 | 3.6 |
| California | West | 1,385 | 1.52 | 37 | 1.49 | 0.58 | 36 | 10.4 | 3.7 |
| Oregon | West | 144 | 1.45 | 38 | 1.58 | 0.51 | 43 | 7.4 | 3.1 |
| Alabama | South | 172 | 1.45 | 39 | 1.12 | 0.7 | 30 | 21.4 | 6.6 |
| Kentucky | South | 150 | 1.42 | 40 | 1.21 | 0.68 | 31 | 15.9 | 5.8 |
| Mississippi | South | 96 | 1.4 | 41 | 1.72 | 0.68 | 32 | 14 | 6 |
| District of Columbia | South | 22 | 1.39 | 42 | 0.62 | 0.4 | 46 | 8.3 | 4.3 |
| Massachusetts | Northeast | 224 | 1.36 | 43 | 0.82 | 0.52 | 41 | 7.6 | 3.2 |
| New Mexico | West | 65 | 1.32 | 44 | 1.87 | 0.62 | 35 | 13.1 | 5.6 |
| Arkansas | South | 86 | 1.2 | 45 | 1.49 | 0.52 | 40 | 13.4 | 10.8 |
| Maine | Northeast | 35 | 1.07 | 46 | 0.87 | 0.35 | 47 | 5.7 | 2.8 |
| West Virginia | South | 44 | 1.07 | 47 | 0.85 | 0.53 | 39 | 12.2 | 4.7 |
| New York | Northeast | 401 | 0.87 | 48 | 0.59 | 0.32 | 48 | 5.3 | 2.9 |
| Vermont | Northeast | 9 | 0.6 | 49 | 0.72 | 0.19 | 50 | 2.6 | 2.2 |
| Alaska | West | 10 | 0.58 | 50 | 0.31 | 0.19 | 49 | 4.7 | 2 |
| Hawaii | West | 12 | 0.36 | 51 | 0.14 | 0.16 | 51 | 4.7 | 2.9 |
SBA franchise loans per 1,000 employer establishments
Dividing by employer establishments instead of residents changes little. The US rate was 0.84 franchise 7(a) loans per 1,000 employer establishments per year (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026), using the County Business Patterns 2023 count of 8,361,342 establishments in the 50 states and DC. The two rankings correlate at 0.94 (Spearman).
Texas ranked first per establishment (1.49), then Utah (1.28), Georgia (1.27) and Ohio (1.27). Hawaii (0.16), Vermont (0.19), Alaska (0.19) and New York (0.32) ranked lowest. Wyoming and Montana fall furthest when the base switches to establishments (to ranks 44 and 45), because both have many employer establishments relative to their populations.
An establishment in CBP is a single physical location with paid employees, so a franchise outlet and an independent shop count the same; the measure shows lending relative to the size of each state’s employer base, not to its number of franchise outlets.
Regional pattern: South leads, Northeast trails, Mountain West tops the list
The brief’s angle expected a Southern and Midwestern band at the top and the Northeast and West Coast at the bottom. The regional averages fit: the South had 2.45 franchise 7(a) loans per 100,000 residents per year, the Midwest 2.20, the West 1.87 and the Northeast 1.44 (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026; Census regions).
The state detail does not. Three Mountain West states rank in the top four (Utah, Colorado, Idaho). Washington (2.07) sits near the US rate while California (1.52) and Oregon (1.45) sit below it. Several Southern states rank in the bottom third: West Virginia (1.07), Arkansas (1.20), Mississippi (1.40), Kentucky (1.42) and Alabama (1.45). Every Northeast state except New Jersey ranks below the US rate.
| Census region | Franchise 7(a) loans | Loans per 100,000 residents per year | Dollars per 100,000 residents per year ($M) | Loans per 1,000 employer establishments per year | Median loan ($) | 504 franchise projects per 100,000 residents per year |
|---|---|---|---|---|---|---|
| South | 7,455 | 2.45 | 2.04 | 1.04 | 390,000 | 0.19 |
| Midwest | 3,545 | 2.2 | 1.6 | 0.9 | 340,000 | 0.32 |
| West | 3,447 | 1.87 | 1.69 | 0.71 | 400,000 | 0.28 |
| Northeast | 1,924 | 1.44 | 0.92 | 0.55 | 321,150 | 0.15 |
Median SBA franchise loan size by state
The median franchise-coded 7(a) loan was $350,000 in the US across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026 ($350,000 in Oct 2021 to Apr 2023 and $394,000 in FY2026 through June 30, 2026); the mean was $801,425 because a minority of loans are large real estate and hotel deals.
Among the 34 states with at least 100 loans, Washington had the highest median ($624,500), followed by Kansas ($482,750) and Oregon ($457,050); Minnesota ($292,500) and Ohio ($300,000) had the lowest. Small states show the extremes: North Dakota ($885,800, 33 loans, 27.3% hotels) and Arkansas ($820,000, 86 loans, 25.6% hotels).
This part of the angle held. Across the 50 states and DC, the median loan correlates with the share of franchise loans to hotels and motels (NAICS 721110; rho 0.60, interval 0.34 to 0.80) and more strongly with the share carrying terms of 240 months or more (rho 0.77), a marker for real estate, which SBA allows up to 25 years (SBA loan terms). Washington is the exception that proves the term link: only 5.8% of its franchise loans were hotels, but 28.0% had 240+ month terms. Loan pricing is covered in our franchise loan interest rates report.
Startups and changes of ownership by state
Startups (the lender reports that loan funds will open the business) were 54.4% of US franchise 7(a) loans across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026; changes of ownership, which include franchise resales, were 14.9%; existing businesses 15.6%; and new businesses of 2 years or less 15.1%.
Among states with 100+ loans, the startup share was highest in Massachusetts (64.3%) and Florida (64.0%) and lowest in Oregon (36.1%), Washington (36.5%) and Wisconsin (36.6%). Change of ownership ran highest in Wisconsin (24.9%), Washington (23.0%) and Kentucky (22.7%) and lowest in Massachusetts (8.5%) and Florida (10.5%). States with more startups tend to have smaller median loans (rho -0.40). For how resales are priced and financed, see our franchise resale report.
| State | Franchise 7(a) loans | Median loan ($) | Startup (%) | New business, 2 years or less (%) | Change of ownership (%) | Existing, more than 2 years (%) | Hotels and motels (% of loans) | Term of 240 months or more (%) | Lender state differs from project state (%) | Sample note |
|---|---|---|---|---|---|---|---|---|---|---|
| Alabama | 172 | 429,750 | 52.9 | 14 | 19.2 | 14 | 11.6 | 18.6 | 82.6 | |
| Alaska | 10 | 533,500 | 40 | 0 | 20 | 40 | 0 | 20 | 50 | Fewer than 100 loans: read with caution |
| Arizona | 364 | 350,000 | 54.7 | 15.4 | 13.5 | 16.5 | 5.2 | 13.2 | 96.4 | |
| Arkansas | 86 | 820,000 | 47.7 | 19.8 | 9.3 | 23.3 | 25.6 | 37.2 | 76.7 | Fewer than 100 loans: read with caution |
| California | 1,385 | 410,000 | 44.5 | 16.2 | 18.4 | 20.9 | 4 | 18 | 69.9 | |
| Colorado | 456 | 350,000 | 55.3 | 14.9 | 16 | 13.8 | 6.4 | 13.2 | 95.4 | |
| Connecticut | 153 | 320,000 | 54.2 | 16.3 | 11.8 | 17.6 | 2 | 5.9 | 88.9 | |
| Delaware | 62 | 246,800 | 56.5 | 12.9 | 16.1 | 14.5 | 0 | 0 | 79 | Fewer than 100 loans: read with caution |
| District of Columbia | 22 | 330,500 | 63.6 | 18.2 | 18.2 | 0 | 0 | 4.5 | 95.5 | Fewer than 100 loans: read with caution |
| Florida | 1,312 | 350,000 | 64 | 12.8 | 10.5 | 12.6 | 3 | 9 | 87.8 | |
| Georgia | 773 | 370,000 | 58.5 | 12.5 | 15.9 | 13.1 | 9.7 | 19.1 | 84.7 | |
| Hawaii | 12 | 330,000 | 50 | 25 | 16.7 | 8.3 | 0 | 0 | 66.7 | Fewer than 100 loans: read with caution |
| Idaho | 141 | 319,500 | 58.9 | 15.6 | 13.5 | 12.1 | 0.7 | 9.9 | 84.4 | |
| Illinois | 528 | 396,000 | 49.1 | 15.5 | 20.3 | 15.2 | 11.2 | 23.1 | 74.2 | |
| Indiana | 387 | 309,500 | 50.4 | 12.7 | 16.8 | 20.2 | 11.6 | 19.1 | 65.9 | |
| Iowa | 139 | 349,500 | 52.5 | 18 | 18.7 | 10.8 | 7.2 | 12.9 | 66.2 | |
| Kansas | 148 | 482,750 | 54.7 | 18.9 | 14.9 | 11.5 | 12.2 | 22.3 | 80.4 | |
| Kentucky | 150 | 397,850 | 55.3 | 10 | 22.7 | 12 | 8 | 15.3 | 78.7 | |
| Louisiana | 167 | 447,900 | 49.7 | 19.2 | 15.6 | 15.6 | 17.4 | 22.2 | 76 | |
| Maine | 35 | 280,800 | 45.7 | 5.7 | 34.3 | 14.3 | 5.7 | 11.4 | 54.3 | Fewer than 100 loans: read with caution |
| Maryland | 287 | 345,000 | 61 | 13.2 | 11.5 | 14.3 | 2.8 | 6.6 | 97.9 | |
| Massachusetts | 224 | 324,500 | 64.3 | 15.2 | 8.5 | 12.1 | 0.9 | 2.7 | 73.7 | |
| Michigan | 518 | 320,000 | 55.6 | 15.3 | 11 | 18.1 | 5.6 | 14.1 | 84 | |
| Minnesota | 352 | 292,500 | 46.3 | 14.5 | 19 | 19.9 | 3.1 | 8.8 | 62.2 | |
| Mississippi | 96 | 563,850 | 40.6 | 16.7 | 24 | 18.8 | 29.2 | 34.4 | 67.7 | Fewer than 100 loans: read with caution |
| Missouri | 290 | 347,300 | 56.9 | 12.4 | 14.8 | 15.9 | 8.3 | 17.9 | 68.3 | |
| Montana | 42 | 581,500 | 35.7 | 21.4 | 26.2 | 16.7 | 19 | 28.6 | 64.3 | Fewer than 100 loans: read with caution |
| Nebraska | 98 | 318,500 | 53.1 | 20.4 | 13.3 | 13.3 | 7.1 | 15.3 | 56.1 | Fewer than 100 loans: read with caution |
| Nevada | 141 | 336,000 | 53.9 | 19.1 | 12.8 | 14.2 | 3.5 | 8.5 | 97.9 | |
| New Hampshire | 61 | 315,000 | 39.3 | 13.1 | 31.1 | 16.4 | 0 | 3.3 | 78.7 | Fewer than 100 loans: read with caution |
| New Jersey | 476 | 349,350 | 56.3 | 14.9 | 11.1 | 17.6 | 1.5 | 5.9 | 90.1 | |
| New Mexico | 65 | 600,000 | 49.2 | 20 | 7.7 | 23.1 | 32.3 | 40 | 69.2 | Fewer than 100 loans: read with caution |
| New York | 401 | 320,000 | 50.1 | 18 | 10.7 | 21.2 | 6.5 | 10.7 | 72.3 | |
| North Carolina | 660 | 436,000 | 58.3 | 15.3 | 12.6 | 13.8 | 9.5 | 18.5 | 80.8 | |
| North Dakota | 33 | 885,800 | 24.2 | 30.3 | 27.3 | 18.2 | 27.3 | 36.4 | 51.5 | Fewer than 100 loans: read with caution |
| Ohio | 752 | 300,000 | 53.5 | 13.3 | 16.6 | 16.6 | 12.6 | 18 | 38.2 | |
| Oklahoma | 184 | 350,000 | 53.8 | 15.8 | 14.7 | 15.8 | 12.5 | 23.9 | 65.2 | |
| Oregon | 144 | 457,050 | 36.1 | 10.4 | 20.1 | 33.3 | 8.3 | 22.9 | 89.6 | |
| Pennsylvania | 526 | 312,750 | 56.1 | 15.6 | 12.2 | 16.2 | 6.1 | 12.2 | 81.6 | |
| Rhode Island | 39 | 265,000 | 38.5 | 17.9 | 20.5 | 23.1 | 2.6 | 7.7 | 94.9 | Fewer than 100 loans: read with caution |
| South Carolina | 299 | 400,000 | 50.5 | 17.1 | 17.4 | 14.7 | 10.7 | 20.7 | 90.3 | |
| South Dakota | 35 | 305,500 | 62.9 | 20 | 14.3 | 2.9 | 5.7 | 5.7 | 77.1 | Fewer than 100 loans: read with caution |
| Tennessee | 367 | 350,000 | 60.8 | 12.3 | 15.8 | 11.2 | 6.5 | 11.4 | 88 | |
| Texas | 2,322 | 427,150 | 60.9 | 15.7 | 12 | 11.5 | 9.3 | 20.5 | 82.9 | |
| Utah | 284 | 326,000 | 54.9 | 18 | 12.7 | 14.4 | 1.8 | 9.9 | 51.1 | |
| Vermont | 9 | 500,000 | 22.2 | 11.1 | 55.6 | 11.1 | 11.1 | 11.1 | 77.8 | Fewer than 100 loans: read with caution |
| Virginia | 452 | 348,000 | 58.2 | 12.6 | 14.4 | 14.6 | 8.4 | 13.1 | 94.7 | |
| Washington | 378 | 624,500 | 36.5 | 20.9 | 23 | 19.6 | 5.8 | 28 | 86.2 | |
| West Virginia | 44 | 431,900 | 36.4 | 22.7 | 13.6 | 27.3 | 18.2 | 27.3 | 90.9 | Fewer than 100 loans: read with caution |
| Wisconsin | 265 | 378,500 | 36.6 | 15.5 | 24.9 | 23 | 7.9 | 22.3 | 64.5 | |
| Wyoming | 25 | 511,000 | 40 | 24 | 20 | 16 | 12 | 20 | 100 | Fewer than 100 loans: read with caution |
SBA 504 franchise projects by state
SBA 504 loans finance land, buildings and equipment through Certified Development Companies (SBA). SBA approved 1,808 franchise-coded 504 projects in the 50 states and DC across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, 10.6% of all 504 loans, or 0.23 per 100,000 residents per year.
The 504 map looks different from the 7(a) map. South Dakota (1.41), North Dakota (0.87), Utah (0.65) and Nebraska (0.61) led, and the Midwest had the highest regional rate (0.32) against 0.19 in the South and 0.15 in the Northeast. Hotels and motels were 25.2% of franchise 504 projects. The median SBA/CDC portion was $1,225,000 and the median CDC plus first-lien amount was $2,899,810. 24 of the 51 jurisdictions had fewer than 20 projects, so single-state 504 ranks move with a handful of deals.
| State | Franchise 504 projects | Projects per 100,000 residents per year | Rank | Franchise share of the state's 504 loans (%) | Median SBA/CDC portion ($) | Median CDC plus first-lien amount ($) | Hotels and motels (% of projects) | Sample note |
|---|---|---|---|---|---|---|---|---|
| South Dakota | 30 | 1.41 | 1 | 14.8 | 919,000 | 2,091,050 | 33.3 | |
| North Dakota | 16 | 0.87 | 2 | 11.4 | 575,500 | 1,297,896 | 0 | Fewer than 20 projects: read with caution |
| Utah | 52 | 0.65 | 3 | 7.5 | 1,147,500 | 2,787,790 | 19.2 | |
| Nebraska | 28 | 0.61 | 4 | 22.4 | 1,111,000 | 2,443,500 | 25 | |
| New Hampshire | 18 | 0.55 | 5 | 8.3 | 584,500 | 1,358,500 | 16.7 | Fewer than 20 projects: read with caution |
| Minnesota | 69 | 0.51 | 6 | 10.4 | 896,000 | 2,040,000 | 27.5 | |
| Iowa | 34 | 0.45 | 7 | 19 | 595,000 | 1,734,783 | 23.5 | |
| Wyoming | 6 | 0.44 | 8 | 10.7 | 1,552,500 | 3,778,730 | 16.7 | Fewer than 20 projects: read with caution |
| Montana | 11 | 0.42 | 9 | 10.4 | 461,000 | 1,098,388 | 27.3 | Fewer than 20 projects: read with caution |
| Wisconsin | 57 | 0.41 | 10 | 9.8 | 1,091,000 | 2,437,000 | 21.1 | |
| Vermont | 6 | 0.4 | 11 | 15.4 | 299,000 | 686,500 | 33.3 | Fewer than 20 projects: read with caution |
| Georgia | 96 | 0.37 | 12 | 20.4 | 1,480,500 | 3,723,000 | 29.2 | |
| Idaho | 17 | 0.37 | 13 | 7.2 | 1,350,000 | 2,748,500 | 11.8 | Fewer than 20 projects: read with caution |
| Arizona | 63 | 0.36 | 14 | 13.9 | 1,336,000 | 3,289,000 | 28.6 | |
| Colorado | 48 | 0.35 | 15 | 11.2 | 1,184,145 | 3,224,720 | 33.3 | |
| Maine | 11 | 0.34 | 16 | 7.1 | 1,392,000 | 3,092,000 | 27.3 | Fewer than 20 projects: read with caution |
| Nevada | 25 | 0.33 | 17 | 9 | 1,194,000 | 2,904,000 | 8 | |
| Florida | 164 | 0.31 | 18 | 10.7 | 1,261,000 | 3,179,659 | 23.2 | |
| New Mexico | 15 | 0.3 | 19 | 19.2 | 1,872,000 | 3,872,232 | 46.7 | Fewer than 20 projects: read with caution |
| Alaska | 5 | 0.29 | 20 | 8.5 | 1,374,000 | 3,043,000 | 20 | Fewer than 20 projects: read with caution |
| Illinois | 86 | 0.29 | 21 | 10.4 | 761,500 | 1,949,000 | 17.4 | |
| Indiana | 45 | 0.28 | 22 | 12.9 | 951,000 | 2,329,600 | 20 | |
| Connecticut | 22 | 0.26 | 23 | 9.2 | 1,891,500 | 4,827,250 | 59.1 | |
| Michigan | 59 | 0.25 | 24 | 15.5 | 1,035,000 | 2,354,500 | 33.9 | |
| California | 223 | 0.24 | 25 | 6.7 | 1,551,000 | 3,603,000 | 22 | |
| Missouri | 35 | 0.24 | 26 | 13.6 | 1,021,000 | 2,273,000 | 22.9 | |
| Alabama | 25 | 0.21 | 27 | 17.5 | 1,220,000 | 2,931,450 | 24 | |
| Washington | 37 | 0.2 | 28 | 12.4 | 1,690,000 | 3,750,200 | 27 | |
| Oregon | 19 | 0.19 | 29 | 10.4 | 926,000 | 2,176,000 | 31.6 | Fewer than 20 projects: read with caution |
| Kansas | 13 | 0.19 | 30 | 13.7 | 1,677,000 | 4,566,500 | 38.5 | Fewer than 20 projects: read with caution |
| Texas | 125 | 0.18 | 31 | 16.3 | 1,423,000 | 3,546,000 | 20 | |
| North Carolina | 42 | 0.17 | 32 | 19.7 | 1,525,000 | 3,849,763 | 28.6 | |
| Virginia | 33 | 0.16 | 33 | 11.8 | 1,143,000 | 2,459,500 | 27.3 | |
| Ohio | 44 | 0.16 | 34 | 12.3 | 1,392,000 | 3,490,500 | 34.1 | |
| Massachusetts | 26 | 0.16 | 35 | 4.4 | 630,000 | 1,435,000 | 19.2 | |
| Rhode Island | 4 | 0.16 | 36 | 3.1 | 437,000 | 1,012,000 | 25 | Fewer than 20 projects: read with caution |
| Pennsylvania | 46 | 0.15 | 37 | 12.9 | 1,365,500 | 3,300,703 | 30.4 | |
| South Carolina | 19 | 0.15 | 38 | 16.8 | 1,358,000 | 3,461,400 | 31.6 | Fewer than 20 projects: read with caution |
| Oklahoma | 13 | 0.14 | 39 | 15.3 | 812,000 | 1,792,000 | 15.4 | Fewer than 20 projects: read with caution |
| Kentucky | 13 | 0.12 | 40 | 20.6 | 899,000 | 1,984,500 | 23.1 | Fewer than 20 projects: read with caution |
| New Jersey | 22 | 0.1 | 41 | 8.9 | 2,106,500 | 5,146,734 | 36.4 | |
| New York | 45 | 0.1 | 42 | 7.2 | 1,252,000 | 2,781,000 | 20 | |
| Mississippi | 6 | 0.09 | 43 | 50 | 1,675,500 | 4,023,500 | 33.3 | Fewer than 20 projects: read with caution |
| Delaware | 2 | 0.08 | 44 | 22.2 | 1,715,500 | 4,008,000 | 50 | Fewer than 20 projects: read with caution |
| Louisiana | 7 | 0.07 | 45 | 13.2 | 644,000 | 1,426,500 | 42.9 | Fewer than 20 projects: read with caution |
| District of Columbia | 1 | 0.06 | 46 | 5 | 5,000,000 | 14,131,500 | 100 | Fewer than 20 projects: read with caution |
| Tennessee | 10 | 0.06 | 47 | 18.2 | 2,298,000 | 5,645,250 | 50 | Fewer than 20 projects: read with caution |
| Hawaii | 2 | 0.06 | 48 | 5 | 990,000 | 2,190,750 | 0 | Fewer than 20 projects: read with caution |
| Arkansas | 4 | 0.06 | 49 | 6.7 | 1,803,500 | 4,320,992 | 50 | Fewer than 20 projects: read with caution |
| Maryland | 8 | 0.06 | 50 | 8.9 | 2,565,500 | 6,218,500 | 12.5 | Fewer than 20 projects: read with caution |
| West Virginia | 1 | 0.02 | 51 | 7.1 | 3,026,000 | 7,958,500 | 100 | Fewer than 20 projects: read with caution |
Does SBA franchise lending follow franchise prevalence?
We compared each state’s lending rates with the share of employer firms that operate all or partly as a franchise in the 2024 Annual Business Survey (data year 2023), the measure used in our franchise statistics by state report. The US share was 4.7%.
The link is weak. Franchise 7(a) loans per 100,000 residents correlate with the franchise share at rho 0.30 (95% bootstrap interval -0.01 to 0.57, which includes zero). Per establishment the figure is 0.35 and for dollars 0.38, both weak. 504 projects show no relationship (rho -0.14). Only Texas and Delaware appear in both top tens; six states appear in both bottom tens (Alaska, Hawaii, Maine, Massachusetts, New York, Vermont).
Part of the reason is arithmetic. Franchise loans per resident equal all SBA 7(a) loans per resident times the franchise share of those loans. The franchise share tracks prevalence closely (rho 0.64): where more firms are franchises, franchise-coded loans make up more of the state’s 7(a) lending. But all 7(a) lending per resident runs the other way (rho -0.41 with the franchise share of firms), so the two effects partly cancel. These are correlations across 51 jurisdictions, not evidence about any borrower.
| Test | States | Spearman rho | 95% bootstrap interval | p-value | Reading |
|---|---|---|---|---|---|
| 7(a) franchise loans per 100,000 residents vs 2023 ABS franchise share of firms | 51 | 0.3 | -0.01 to 0.57 | 0.033 | no reliable relationship; interval includes zero |
| 7(a) franchise loans per 1,000 establishments vs 2023 ABS franchise share | 51 | 0.35 | 0.04 to 0.60 | 0.012 | weak positive; interval excludes zero |
| 7(a) franchise dollars per 100,000 residents vs 2023 ABS franchise share | 51 | 0.38 | 0.08 to 0.61 | 0.006 | weak positive; interval excludes zero |
| Franchise share of the state's 7(a) loans vs 2023 ABS franchise share | 51 | 0.64 | 0.41 to 0.81 | <0.001 | strong positive; interval excludes zero |
| All SBA 7(a) loans per 100,000 residents vs 2023 ABS franchise share | 51 | -0.41 | -0.63 to -0.14 | 0.003 | moderate negative; interval excludes zero |
| 504 franchise projects per 100,000 residents vs 2023 ABS franchise share | 51 | -0.14 | -0.41 to 0.14 | 0.321 | no reliable relationship; interval includes zero |
| Median franchise 7(a) loan vs hotel and motel share of franchise loans | 51 | 0.6 | 0.34 to 0.80 | <0.001 | strong positive; interval excludes zero |
| Median franchise 7(a) loan vs share with terms of 240 months or more | 51 | 0.77 | 0.60 to 0.87 | <0.001 | strong positive; interval excludes zero |
| Median franchise 7(a) loan vs startup share | 51 | -0.4 | -0.63 to -0.10 | 0.004 | weak negative; interval excludes zero |
| Loans per 100,000 residents, Oct 2021 to Apr 2023 vs FY2026 to date | 51 | 0.65 | 0.42 to 0.81 | <0.001 | strong positive; interval excludes zero |
Where SBA franchise lending is growing
Franchise 7(a) lending ran at 7,518 loans a year in FY2026 through June 30, 2026, up 10.2% from 6,821 a year in Oct 2021 to Apr 2023. All 7(a) lending grew 10.0%, so franchise lending kept pace with the program rather than outrunning it.
13 states show an increase that is statistically distinguishable from no change (z of at least 1.96 on the log ratio). Among states with 150 or more loans in the earlier window, the largest were Maryland (+80.0%), New Jersey (+38.0%), Utah (+37.6%), New York (+30.4%), Florida (+25.6%), Virginia (+23.8%), Pennsylvania (+22.5%) and California (+19.4%). Colorado (-21.1%) and Oklahoma (-29.5%) were the only clear declines. Connecticut (+56.1%), Massachusetts (+52.8%) and Rhode Island (+122.5%) also rose by clear margins from smaller bases, so most of the Northeast moved up from a low starting point.
The per-resident ranking itself is fairly stable: the Oct 2021 to Apr 2023 and FY2026 through June 30, 2026 rates correlate at 0.65. FY2026 is nine months that include the October 2025 shutdown, so a full-year figure may differ.
| State | Loans per year, Oct 2021 to Apr 2023 | Loans per year, FY2026 to Jun 30 2026 | Change in annual pace (%) | z (log ratio) | Distinguishable from no change | Share of US franchise 7(a) loans, earlier window (%) | Share of US franchise 7(a) loans, FY2026 (%) |
|---|---|---|---|---|---|---|---|
| Montana | 12 | 31 | 155.9 | 3.03 | Yes | 0.2 | 0.4 |
| Rhode Island | 12 | 27 | 122.5 | 2.5 | Yes | 0.2 | 0.4 |
| District of Columbia | 7 | 15 | 111.4 | 1.76 | No | 0.1 | 0.2 |
| Maryland | 98 | 177 | 80 | 4.96 | Yes | 1.4 | 2.4 |
| Vermont | 3 | 5 | 69.1 | 0.78 | No | 0 | 0.1 |
| Delaware | 22 | 36 | 63 | 1.91 | No | 0.3 | 0.5 |
| Connecticut | 56 | 87 | 56.1 | 2.72 | Yes | 0.8 | 1.2 |
| Massachusetts | 82 | 126 | 52.8 | 3.13 | Yes | 1.2 | 1.7 |
| Oregon | 53 | 80 | 51 | 2.44 | Yes | 0.8 | 1.1 |
| New Jersey | 182 | 252 | 38 | 3.43 | Yes | 2.7 | 3.4 |
| Utah | 109 | 150 | 37.6 | 2.63 | Yes | 1.6 | 2 |
| New Hampshire | 23 | 32 | 37.1 | 1.2 | No | 0.3 | 0.4 |
| New York | 157 | 205 | 30.4 | 2.58 | Yes | 2.3 | 2.7 |
| Nebraska | 39 | 50 | 28.2 | 1.19 | No | 0.6 | 0.7 |
| Florida | 521 | 654 | 25.6 | 3.99 | Yes | 7.6 | 8.7 |
| South Dakota | 14 | 17 | 24.9 | 0.64 | No | 0.2 | 0.2 |
| Virginia | 180 | 223 | 23.8 | 2.19 | Yes | 2.6 | 3 |
| Pennsylvania | 211 | 258 | 22.5 | 2.24 | Yes | 3.1 | 3.4 |
| Alabama | 69 | 84 | 22.2 | 1.26 | No | 1 | 1.1 |
| California | 560 | 669 | 19.4 | 3.17 | Yes | 8.2 | 8.9 |
| Kentucky | 61 | 72 | 18.9 | 1.02 | No | 0.9 | 1 |
| Washington | 153 | 182 | 18.8 | 1.61 | No | 2.2 | 2.4 |
| Mississippi | 39 | 45 | 15.9 | 0.69 | No | 0.6 | 0.6 |
| Arizona | 150 | 170 | 13.3 | 1.13 | No | 2.2 | 2.3 |
| North Carolina | 272 | 308 | 13.1 | 1.5 | No | 4 | 4.1 |
| Iowa | 58 | 64 | 11.5 | 0.61 | No | 0.8 | 0.9 |
| Wisconsin | 110 | 122 | 10.5 | 0.77 | No | 1.6 | 1.6 |
| Tennessee | 154 | 166 | 7.9 | 0.68 | No | 2.3 | 2.2 |
| Hawaii | 5 | 5 | 5.7 | 0.09 | No | 0.1 | 0.1 |
| Texas | 983 | 1,029 | 4.7 | 1.03 | No | 14.4 | 13.7 |
| Nevada | 60 | 62 | 2.3 | 0.13 | No | 0.9 | 0.8 |
| Illinois | 225 | 230 | 2.1 | 0.23 | No | 3.3 | 3.1 |
| South Carolina | 129 | 128 | -0 | -0 | No | 1.9 | 1.7 |
| Georgia | 332 | 332 | -0.2 | -0.02 | No | 4.9 | 4.4 |
| Maine | 15 | 15 | -3.1 | -0.09 | No | 0.2 | 0.2 |
| Louisiana | 73 | 70 | -4.4 | -0.27 | No | 1.1 | 0.9 |
| Indiana | 170 | 159 | -6.2 | -0.58 | No | 2.5 | 2.1 |
| Missouri | 128 | 118 | -7.9 | -0.65 | No | 1.9 | 1.6 |
| Minnesota | 156 | 140 | -10.2 | -0.92 | No | 2.3 | 1.9 |
| Idaho | 63 | 56 | -10.3 | -0.59 | No | 0.9 | 0.7 |
| Ohio | 339 | 290 | -14.3 | -1.91 | No | 5 | 3.9 |
| Michigan | 234 | 199 | -14.7 | -1.63 | No | 3.4 | 2.7 |
| New Mexico | 30 | 24 | -19.1 | -0.76 | No | 0.4 | 0.3 |
| North Dakota | 15 | 12 | -20.7 | -0.59 | No | 0.2 | 0.2 |
| Colorado | 210 | 166 | -21.1 | -2.25 | Yes | 3.1 | 2.2 |
| Arkansas | 41 | 29 | -27.3 | -1.29 | No | 0.6 | 0.4 |
| Oklahoma | 87 | 62 | -29.5 | -2.06 | Yes | 1.3 | 0.8 |
| Kansas | 70 | 50 | -29.5 | -1.85 | No | 1 | 0.7 |
| Wyoming | 12 | 8 | -33.3 | -0.86 | No | 0.2 | 0.1 |
| Alaska | 5 | 3 | -47.2 | -0.81 | No | 0.1 | 0 |
| West Virginia | 23 | 11 | -53 | -1.93 | No | 0.3 | 0.1 |
Lenders across state lines
For 78.5% of US franchise 7(a) loans in Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, the lender’s state in the SBA file (BankState) differed from the project state, compared with 66.5% of other 7(a) loans (SBA FOIA data dictionary). Among states with 100+ loans the share ranged from 38.2% in Ohio and 51.1% in Utah to 97.9% in Maryland and 97.9% in Nevada.
BankState is the state SBA lists for the lender, which may be a head office rather than the branch that served the borrower, so the share describes where lenders are based, not where borrowers applied. Which lenders make these loans is covered in our SBA lenders for franchises report; SBA’s Lender Match tool lists more than 800 participating lenders.
Original analysis: how we calculated it
Franchise 7(a) loans and dollars per 100,000 residents per year
- Formula
state loans (or dollars) / (pop 2022 x 1.58 + pop 2025 x 0.75) x 100,000- Inputs
- N01, N02, N11, N12, F16, F17, S-XX-1, T01
- Result
- US 2.09 loans and $1.68M; Utah 3.55 to Hawaii 0.36
- Limitations
- Clean windows only; residents are not borrowers; small states noisy
Franchise 7(a) loans per 1,000 employer establishments per year
- Formula
state loans / (CBP 2023 establishments x 2.33) x 1,000- Inputs
- N11, F18, S-XX-2, T01
- Result
- US 0.84; Texas 1.49 to Hawaii 0.16; rank agreement 0.94
- Limitations
- Establishments include all employers, not only franchise outlets
Median loan, startup share and change-of-ownership share by state
- Formula
median GrossApproval; share of BusinessAge categories- Inputs
- N15, N19, N21, S-XX-3, T02
- Result
- US $350,000, startups 54.4%, changes of ownership 14.9%
- Limitations
- Nominal dollars across 2021 to 2026; lender-reported business age
504 franchise projects per 100,000 residents per year
- Formula
state 504 franchise projects / person-years x 100,000- Inputs
- B01, B04, S-XX-4, T03
- Result
- US 0.23; South Dakota 1.41; Midwest 0.32
- Limitations
- 24 states under 20 projects
Rank correlation with franchise prevalence (2023 ABS)
- Formula
Spearman rho across 51 jurisdictions; 95% bootstrap interval- Inputs
- C01 to C05, C13, F19, T05
- Result
- per resident 0.30 (-0.01 to 0.57); share of state 7(a) 0.64; all 7(a) per resident -0.41; 504 -0.14
- Limitations
- Ecological correlation; ABS measures firms
Loan size vs hotel and real-estate-length lending
- Formula
Spearman rho of state median with hotel share and 240+ month share- Inputs
- C06, C07, C08, T02
- Result
- hotels 0.60; 240+ month terms 0.77
- Limitations
- Term length is a proxy for real estate
Change in annual pace by state
- Formula
(loans B / 0.75) / (loans A / 1.58) - 1; z = ln(ratio) / sqrt(1/nA + 1/nB)- Inputs
- N34 to N39, T06
- Result
- US +10.2%; 13 states up and 2 down by clear margins
- Limitations
- FY2026 includes the shutdown month; partial year
How the index was built
Loans: franchise-coded SBA 7(a) and 504 approvals (non-blank FranchiseCode) by ProjectState in the FOIA files as of 2026-06-30, the newest release on 2026-10-08. Approvals include 1,375 7(a) loans later cancelled; dropping them leaves the ranking almost unchanged (rank correlation 0.99). Puerto Rico (22 loans) and the U.S. Virgin Islands (1) are excluded from rates. Borrower names and addresses were never loaded.
Denominators: Census Vintage 2025 population (July 1, 2022 and 2025), CBP 2023 employer establishments (the newest CBP year on the Census server on 2026-10-08) and the 2023 ABS franchise share. Correlations are Spearman ranks with 10,000 bootstrap resamples. States with fewer than 100 franchise 7(a) loans (17 of 51) or fewer than 20 franchise 504 projects are flagged in the tables. Scripts and CSVs reproduce every figure.
Background on how franchises qualify is in our SBA Franchise Directory report, and overall costs are in our franchise costs guide.
At a glance
- Across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, SBA approved 16,371 franchise-coded 7(a) loans worth $13.13 billion in the 50 states and DC, or 2.09 loans and $1.68 million per 100,000 residents per year.
- Utah (3.55), Colorado (3.32), Texas (3.26), Idaho (3.07) and Georgia (3.01) had the highest rates per 100,000 residents per year; Hawaii (0.36), Alaska (0.58), Vermont (0.60) and New York (0.87) had the lowest.
- By Census region, the South (2.45) and Midwest (2.20) led and the Northeast (1.44) trailed in loans per 100,000 residents per year; the West sat at 1.87.
- Per 1,000 employer establishments, Texas led at 1.49 loans a year against a US rate of 0.84; the per-resident and per-establishment rankings agree closely (rank correlation 0.94).
- The planned angle held only in part: the state rate tracks the 2023 franchise share of firms weakly (rho 0.30, 95% interval -0.01 to 0.57), and Arkansas, the state with the highest franchise share, ranks 45 of 51.
- Median loan size rises with hotel lending (rho 0.60) and with real-estate-length terms of 240 months or more (rho 0.77); the US median was $350,000.
- SBA 504 franchise projects (1,808 in the same months) cluster in the Plains: South Dakota (1.41 per 100,000 residents per year) and North Dakota (0.87) lead a US rate of 0.23.
- The annual pace of franchise 7(a) loans rose 10.2% from Oct 2021 to Apr 2023 to FY2026 through June 30, 2026, in line with all 7(a) loans (+10.0%); the fastest statistically clear gains were in Maryland (+80.0%), New Jersey (+38.0%) and Utah (+37.6%).
Key findings
- SBA approved 16,371 franchise-coded 7(a) loans worth $13.13 billion in the 50 states and DC across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- The US rate was 2.09 franchise 7(a) loans per 100,000 residents per year (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026), or $16.76 of franchise 7(a) lending per resident per year. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Utah had the highest rate, 3.55 franchise 7(a) loans per 100,000 residents per year (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026); Hawaii had the lowest, 0.36. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Texas had the most franchise 7(a) loans, 2,322, and the highest rate per 1,000 employer establishments, 1.49 per year (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- The Northeast had 1.44 franchise 7(a) loans per 100,000 residents per year, the lowest of the four Census regions; the South had 2.45 (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Franchise-coded loans were 25.8% of all SBA 7(a) loans in Texas and 2.6% in Vermont (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Across the 50 states and DC, the state rate per 100,000 residents correlates only weakly with the 2023 ABS franchise share of employer firms: Spearman rho 0.30, 95% interval -0.01 to 0.57. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Arkansas had the highest 2023 franchise share of employer firms (10.8%) but ranked 45 of 51 in franchise 7(a) loans per 100,000 residents (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- The US median franchise 7(a) loan was $350,000 (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026); among states with at least 100 loans, Washington had the highest median ($624,500) and Minnesota the lowest ($292,500). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Across states, median franchise 7(a) loan size correlates with the share of loans with 240+ month terms (rho 0.77) and with the hotel and motel share (rho 0.60) (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- Startups were 54.4% and changes of ownership 14.9% of US franchise 7(a) loans (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026); Wisconsin had the highest change-of-ownership share among states with 100+ loans, 24.9%. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- South Dakota had 1.41 franchise 504 projects per 100,000 residents per year, the highest rate, against a US rate of 0.23 (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- For 78.5% of US franchise 7(a) loans, the lender’s state in the SBA file differed from the project state, compared with 66.5% of other 7(a) loans (Oct 2021 to Apr 2023 and FY2026 through June 30, 2026). SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
- The annual pace of franchise 7(a) loans rose 10.2% from Oct 2021 to Apr 2023 to FY2026 through June 30, 2026, close to the +10.0% change for all US 7(a) loans. SBA 7(a) and 504 FOIA files, as of 2026-06-30 (analysis)
What's new
- 2026-10-08: built on the SBA FOIA file as of 2026-06-30, still the newest on data.sba.gov (SBA updates quarterly, about one month after quarter end).
- FY2026 data run from the first post-shutdown approval on 2025-11-13 through June 30, 2026: 5,619 franchise-coded 7(a) loans.
- Population uses Census Vintage 2025 (state totals page dated January 2026); establishments use County Business Patterns 2023, the newest year on the Census server.
- SBA’s current Franchise Directory file is effective 2026-09-29; SOP 50 10 8.1 with technical updates took effect 2026-10-01.
Questions people ask
Which states get the most SBA franchise loans?
By count, Texas (2,322), California (1,385) and Florida (1,312) had the most franchise-coded SBA 7(a) loans across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, per the SBA FOIA file as of 2026-06-30. Per 100,000 residents per year, Utah (3.55), Colorado (3.32) and Texas (3.26) led, against a US rate of 2.09.
Can you get an SBA franchise loan in any state?
Yes. SBA 7(a) eligibility requires the business to be located in the U.S. (SBA), and all 51 jurisdictions (50 states and DC) had franchise-coded 7(a) loans in both Oct 2021 to Apr 2023 and FY2026 through June 30, 2026. Puerto Rico had 22 franchise-coded 7(a) loans in the same months. Lenders use SBA’s Franchise Directory to evaluate the eligibility of franchise businesses (SBA).
What is the average SBA franchise loan in my state?
The US median franchise-coded 7(a) loan was $350,000 and the mean $801,425 across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026. Among states with 100+ loans, medians ranged from $292,500 in Minnesota to $624,500 in Washington. The state table below lists every median; states under 100 loans are flagged.
Do SBA lenders lend across state lines?
Often. For 78.5% of US franchise 7(a) loans in Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, the lender’s state in the SBA file differed from the project state, versus 66.5% of other 7(a) loans. The share ranged from 38.2% in Ohio to 97.9% in Maryland among states with 100+ loans. See our lenders report for who they are.
Where is franchise lending growing?
Nationally, franchise 7(a) loans ran 10.2% faster per year in FY2026 through June 30, 2026 than in Oct 2021 to Apr 2023, matching all 7(a) loans (+10.0%). Clear gains among larger states: Maryland (+80.0%), New Jersey (+38.0%), Utah (+37.6%), New York (+30.4%) and Florida (+25.6%). Colorado (-21.1%) and Oklahoma (-29.5%) fell.
Frequently asked questions
What counts as an SBA franchise loan in this data?
An SBA 7(a) or 504 approval with a franchise code in the SBA FOIA file (as of 2026-06-30). Codes come from lenders checking the brand against SBA’s Franchise Directory, so the count depends on lender coding.
Why does this report skip FY2024 and most of FY2025?
SBA stopped publishing the Franchise Directory on May 11, 2023 and brought it back on June 1, 2025; franchise coding fell in between. Only Oct 2021 to Apr 2023 (13.7% of 7(a) loans coded franchise) and FY2026 through June 30, 2026 (13.8%) are used. The coding gap is documented in our SBA franchise loans report.
How many SBA franchise loans were approved in FY2026 so far?
SBA approved 5,619 franchise-coded 7(a) loans worth $4.75 billion in the U.S. in FY2026 through June 30, 2026, 13.8% of all 7(a) loans, per the SBA FOIA file.
Which state has the highest SBA franchise lending per resident?
Utah, at 3.55 franchise 7(a) loans per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026; Texas leads on dollars ($2.98 million per 100,000 residents per year) and per establishment (1.49 per 1,000).
Which state has the lowest SBA franchise lending per resident?
Hawaii, at 0.36 franchise 7(a) loans per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, followed by Alaska (0.58) and Vermont (0.60).
Do states with more franchises get more SBA franchise loans per resident?
Only weakly. The Spearman correlation with the 2023 ABS franchise share of firms is 0.30 (95% interval -0.01 to 0.57) across the 50 states and DC. Arkansas, with the highest franchise share (10.8%), ranks 45 of 51.
What share of SBA franchise loans go to startups?
54.4% of US franchise-coded 7(a) loans across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026 were reported as startups whose loan opens the business; 14.9% were changes of ownership.
How large is a typical SBA 504 franchise project?
The median SBA/CDC portion was $1,225,000 and the median CDC plus first-lien amount $2,899,810 for 1,808 franchise-coded 504 projects in the 50 states and DC across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026.
What are the SBA loan size limits?
How often will this index be updated?
SBA updates the FOIA files quarterly, typically one month after the quarter ends (SBA). This index will be refreshed when the file as of 2026-09-30 is posted.
For journalists
Most quotable statistics
Utah had 3.55 franchise SBA 7(a) loans per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, the highest rate of any state; Hawaii had 0.36.
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)The Northeast had 1.44 franchise SBA 7(a) loans per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, against 2.45 in the South.
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)Across the 50 states and DC, franchise SBA lending per resident correlates only weakly with the 2023 franchise share of firms (Spearman 0.30).
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)The median franchise SBA 7(a) loan in the U.S. was $350,000 across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026; among states with 100+ loans, Washington’s was highest at $624,500.
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)78.5% of US franchise SBA 7(a) loans across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026 came from a lender listed in a different state from the project.
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)South Dakota had 1.41 franchise SBA 504 projects per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, about six times the US rate of 0.23.
SBA 7(a) and 504 FOIA files as of 2026-06-30 (analysis)
If you cite only a few, cite these
- Utah had 3.55 franchise SBA 7(a) loans per 100,000 residents per year across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026, the highest rate of any state; Hawaii had 0.36. source
- Across the 50 states and DC, franchise SBA lending per resident correlates only weakly with the 2023 franchise share of firms (Spearman 0.30). source
- The median franchise SBA 7(a) loan in the U.S. was $350,000 across Oct 2021 to Apr 2023 and FY2026 through June 30, 2026; among states with 100+ loans, Washington’s was highest at $624,500. source
Press summary and suggested headlines
A new index from Franchise Consultants and Brokers ranks SBA franchise loans by state using SBA's FOIA loan file as of June 30, 2026 and Census population and business counts. To avoid a known coding gap, it counts only months when SBA's Franchise Directory was in force: Oct 2021 to Apr 2023 and FY2026 through June 30, 2026. Across the 50 states and DC, SBA approved 16,371 franchise-coded 7(a) loans, or 2.09 per 100,000 residents per year. Utah (3.55), Colorado (3.32) and Texas (3.26) led; Hawaii (0.36) and Alaska (0.58) trailed. The South led the regions and the Northeast trailed, but the state ranking tracks franchise prevalence only weakly (Spearman 0.30). Loan sizes were largest where hotel and real estate lending is common. The median loan was $350,000, 54.4% of loans funded startups, and the annual pace rose 10.2% in FY2026. All data and scripts are downloadable under CC BY 4.0.
Suggested headlines
- Utah tops SBA franchise lending per resident; Hawaii ranks last
- Northeast trails South in SBA franchise loans per resident, 1.44 vs 2.45
- More franchises, more SBA franchise loans? Only weakly, state data show
- Hotel-heavy states get the biggest SBA franchise loans
- SBA franchise lending ran 10.2% faster in FY2026, led by Maryland and New Jersey
Methodology
Sources and selection. Loan counts come from the SBA 7(a) and 504 FOIA files as of 2026-06-30 (data.sba.gov), checked on 2026-10-08 for a newer file (none posted). Denominators come from Census Bureau bulk files that need no API key: Vintage 2025 state population, County Business Patterns 2023 (the newest year posted) and the 2024 Annual Business Survey, data year 2023 (labelled 2023 (2024 ABS)). Program rules come from SBA pages and the Federal Register. Secondary sources are used only for one policy date (Taft) and one comparison figure (ProjectionHub), each labelled.
Inclusion. Franchise-coded approvals (non-blank FranchiseCode) with a project in the 50 states or DC, approved Oct 1, 2021 to Apr 30, 2023 or Oct 1, 2025 to Jun 30, 2026. Excluded: May 2023 to September 2025 (the Directory was unpublished from May 11, 2023 until June 1, 2025, and FY2025 is dropped whole so the second window is a clean fiscal year to date); territories are excluded from rates. Cancelled approvals are kept, as in SBA’s approval counts (1,375 7(a) loans).
Derived metrics. Rates use person-years (population times window length). Per-business rates use CBP 2023 establishments times 1.58 plus 0.75 years. Shares and medians pool both windows in nominal dollars. Correlations are Spearman ranks across 51 jurisdictions with 10,000 bootstrap resamples (seed 20261008). Pace change uses a Poisson z test on the log ratio of annual rates.
Conflicts and limits. Taft dates the Directory’s removal to SOP 50 10 7 (Aug 1, 2023); the Federal Register rule ended publication on May 11, 2023, which this report uses. ProjectState is where the project occurs, not where the owner lives. Franchise codes depend on lenders; brands missing from the Directory are not counted. Small states carry wide uncertainty and are flagged. ABS counts firms, not outlets. FY2026 covers nine months including the October 2025 shutdown. Nothing here describes any borrower, brand or lender.
Last updated 2026-10-08. Next update after SBA posts the FOIA file as of 2026-09-30.
Sources and source quality
Tier 1: primary and government sources (17)
- 7(a) and 504 FOIA loan files, as of 2026-06-30, U.S. Small Business Administration (accessed 2026-10-08)
- 7(a) and 504 FOIA data dictionary, U.S. Small Business Administration (accessed 2026-10-08)
- State Population Totals and Components of Change: 2020-2025 (Vintage 2025), U.S. Census Bureau (accessed 2026-10-08)
- NST-EST2025-ALLDATA state population estimates file, U.S. Census Bureau (accessed 2026-10-08)
- County Business Patterns: 2023 (state file cbp23st), U.S. Census Bureau (accessed 2026-10-08)
- County Business Patterns methodology, U.S. Census Bureau (accessed 2026-10-08)
- 2024 Annual Business Survey (data year 2023), Characteristics of Businesses, AB2300CSCB01, U.S. Census Bureau (accessed 2026-10-08)
- Census Regions and Divisions of the United States, U.S. Census Bureau (accessed 2026-10-08)
- 2022 NAICS 2-6 digit codes, U.S. Census Bureau (accessed 2026-10-08)
- Affiliation and Lending Criteria for the SBA Business Loan Programs, 88 FR 21074 (2023-04-10), Federal Register (GovInfo) (accessed 2026-10-08)
- SOP 50 10 Lender and Development Company Loan Programs, version history, U.S. Small Business Administration (accessed 2026-10-08)
- SBA Franchise Directory (document page), U.S. Small Business Administration (accessed 2026-10-08)
- 7(a) loans, U.S. Small Business Administration (accessed 2026-10-08)
- 504 loans, U.S. Small Business Administration (accessed 2026-10-08)
- SBA lender resources: loan program terms (7(a) and CDC/504), U.S. Small Business Administration (accessed 2026-10-08)
- Lender Match, U.S. Small Business Administration (accessed 2026-10-08)
- Shutdown Blocks SBA from Delivering $5 Billion to Small Businesses (news release 26-06, 2025-11-13), U.S. Small Business Administration (accessed 2026-10-08)
Tier 3: journalism and commentary (2)
- SBA Franchise Directory Reintroduced Effective June 1, 2025 (law bulletin, 2025-04-23), Taft Stettinius & Hollister (accessed 2026-10-08)
- SBA Lending State Rankings, All 50 States (2023-10-18), ProjectionHub (accessed 2026-10-08)
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Franchise Consultants and Brokers Editorial Team. "SBA Franchise Loans by State: Per-Resident and Per-Business Index, 2021 to 2026." Franchise Consultants and Brokers, updated October 8, 2026. https://franchiseconsultantsandbrokers.com/research/sba-franchise-loans-by-state/
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