Lenders approved 1,245 SBA 7(a) loans worth $811M for Alabama businesses in fiscal years 2024 through 2026, net of cancellations. That ranks 34th of 52 by number of loans and 30th by dollars. The median loan was $254K at a median starting rate of 10.25%. In FY2026 alone, lenders approved 395 Alabama loans for $290M before cancellations.
What stands out in Alabama
Few SBA Express loans
14.9% of Alabama's 7(a) loans were made through SBA Express, against 35.8% nationally. Express loans are capped at $500,000 and the lender makes the credit decision itself, so they move faster but are smaller. More Alabama loans go through standard 7(a) processing, which takes longer but allows amounts up to $5 million.
More startup lending
Loans to open a new business made up 23.3% of Alabama's 7(a) loans, against 16.1% nationally; counting businesses two years old or younger, the share is 40.2%.
A franchise-heavy market
Franchise businesses took 17.1% of Alabama's 7(a) loans, against 11.0% nationally.
A steeper FY2026 drop than the country
Alabama approvals went from 626 in FY2025 to 395 in FY2026 (−36.9%), against −28.1% nationally. Dollar volume moved from $353M to $290M, so the fall was concentrated in smaller loans: the median Alabama loan was $315K in FY2026 against $202K in FY2024.
Higher charge-offs on older loans
Of the 545 Alabama 7(a) loans approved in FY2020 and FY2021, 5.1% had been charged off by September 2026, against 3.7% nationally. Measured in dollars, 2.8% of the amount approved was charged off (1.0% nationally).
Bigger loans than average
The median 7(a) loan in Alabama was $254K, above the national median of $175K. 40.2% of Alabama loans were $150,000 or less (49.0% nationally) and 18.6% were $1 million or more (13.6% nationally). Business purchases (14.2% of Alabama loans) and franchises (17.1%) are two of the usual drivers of bigger tickets.
What a typical Alabama SBA loan looks like
| FY2024-FY2026, not cancelled | Alabama | United States |
|---|---|---|
| Median loan | $254K | $175K |
| Average loan | $651K | $508K |
| Median starting rate | 10.25% | 10.25% |
| Variable-rate loans | 87.2% | 86.4% |
| Median term | 120 months | 120 months |
| Loans of $150K or less | 40.2% | 49.0% |
| Loans of $500K or less | 69.9% | 76.9% |
| Loans of $1M or more | 18.6% | 13.6% |
| Startups (loan opens the business) | 23.3% | 16.1% |
| Startups and businesses 2 years old or less | 40.2% | 32.0% |
| Change of ownership (buying a business) | 14.2% | 10.9% |
| Franchise businesses | 17.1% | 11.0% |
| SBA Express loans | 14.9% | 35.8% |
| Jobs supported (reported at approval) | 14,872 | 1,733,816 |
Alabama SBA 7(a) loans by fiscal year
SBA fiscal years run October to September, so FY2026 covers October 2025 through September 2026. "Approved" counts every loan SBA guaranteed, the basis of SBA's own published totals; "not cancelled" drops loans that were later cancelled before or after funding. FY2026 loans are recent, so some of them may still be cancelled.
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| Loans approved | 502 | 626 | 395 |
| Dollars approved | $295M | $353M | $290M |
| Loans not cancelled | 430 | 476 | 339 |
| Median loan | $202K | $250K | $315K |
| Median rate | 11.25% | 10.25% | 9.25% |
| Loans of $150K or less | 46.5% | 39.5% | 33.0% |
| SBA Express share | 13.7% | 13.9% | 18.0% |
FY2026 approvals in Alabama changed by −36.9% from FY2025; nationally the change was −28.1%. See why SBA lending fell in FY2026.
Top SBA 7(a) lenders in Alabama
| Lender | Loans | Share of state |
|---|---|---|
| 1. Newtek Bank, National Association | 112 | 9.0% |
| 2. The Huntington National Bank | 98 | 7.9% |
| 3. Live Oak Banking Company | 72 | 5.8% |
| 4. Sabre Finance | 68 | 5.5% |
| 5. Northeast Bank | 66 | 5.3% |
| 6. Readycap Lending, LLC | 50 | 4.0% |
| 7. BayFirst National Bank | 48 | 3.9% |
| 8. Wells Fargo Bank National Association | 42 | 3.4% |
| 9. United Midwest Savings Bank National Association | 34 | 2.7% |
| 10. Celtic Bank Corporation | 29 | 2.3% |
Industries that borrow most in Alabama
| Sector | Loans | Share | Median loan | Median rate |
|---|---|---|---|---|
| Restaurants and hotels | 215 | 17.3% | $370K | 10.00% |
| Retail | 139 | 11.2% | $250K | 10.25% |
| Construction | 127 | 10.2% | $200K | 10.50% |
| Other services (repair, personal care) | 111 | 8.9% | $249K | 10.25% |
| Health care | 99 | 8.0% | $150K | 10.25% |
| Professional services | 98 | 7.9% | $162K | 10.00% |
| Administrative and support services | 81 | 6.5% | $150K | 10.75% |
| Manufacturing | 65 | 5.2% | $400K | 10.00% |
Where in Alabama the loans go
| County | Loans |
|---|---|
| Jefferson | 264 |
| Madison | 143 |
| Mobile | 110 |
| Baldwin | 104 |
| Shelby | 87 |
| Montgomery | 55 |
| Lee | 51 |
| Tuscaloosa | 30 |
| City | Loans |
|---|---|
| Birmingham | 152 |
| Mobile | 85 |
| Huntsville | 81 |
| Montgomery | 48 |
| Madison | 44 |
| Hoover | 29 |
| Auburn | 26 |
| Trussville | 25 |
Counts only, and only places with at least 10 loans. No individual businesses are listed.
SBA 504 loans in Alabama
The SBA 504 program finances owner-occupied real estate and long-life equipment. A certified development company (CDC) lends up to 40% of the project with an SBA-backed debenture, a bank typically lends about 50%, and the business puts in the rest. The amounts below are the CDC portion.
| Alabama | United States | |
|---|---|---|
| 504 loans, FY2024-FY2026 (not cancelled) | 163 | 18,076 |
| 504 dollars | $181M | $20.82B |
| Median 504 loan | $754K | $742K |
| Jobs supported (reported at approval) | 1,803 | 190,338 |
| Most active CDCs | 504 loans |
|---|---|
| Southern Development Council | 60 |
| Florida Business Development Corporation | 51 |
| Birmingham Citywide Local Development Company | 24 |
| Florida First Capital Finance Corporation, Inc. | 23 |
How older loans performed
Of the 545 SBA 7(a) loans approved for Alabama businesses in FY2020 and FY2021 (not cancelled), 28 had been charged off by September 30, 2026: 5.1% by count and 2.8% of dollars approved. The national figures are 3.7% and 1.0%. Loans from these years have had five to seven years to season, so they say more about losses than recent loans do.
SBA district office for Alabama
Alabama loans are overseen by the SBA Alabama District Office. District offices do not make loans; they support lenders and borrowers and point businesses to local resource partners. Contact details are on SBA's local assistance page.
Comparing SBA and other funding in Alabama
An SBA loan is often the cheapest long-term money a small business can get, but approval takes weeks and the 2025 and 2026 rule changes narrowed who qualifies. FSE (Funding Solutions Experts) is an independent commercial finance brokerage. We are not an SBA lender and are not affiliated with the U.S. Small Business Administration; one application lets us compare SBA and non-SBA options from our funding partners side by side.
- No fee to your business: we are paid a commission by the funding partner.
- No credit check to apply.
- To be considered, a business generally needs at least 1 year in business and $10,000 or more in monthly revenue.
Read what an SBA loan is and how the programs work or our SBA and term loans guide.
Frequently asked questions
How many SBA loans were made in Alabama?
Lenders approved 502 SBA 7(a) loans for Alabama businesses in FY2024, 626 in FY2025 and 395 in FY2026, before cancellations. Net of cancelled loans, the three years total 1,245 loans worth $811M, plus 163 SBA 504 loans worth $181M.
Which banks make the most SBA loans in Alabama?
In FY2024 to FY2026 the most active 7(a) lenders in Alabama were Newtek Bank, National Association (112 loans, 9.0%), The Huntington National Bank (98 loans, 7.9%), Live Oak Banking Company (72 loans, 5.8%).
What is the typical SBA loan size and rate in Alabama?
The median 7(a) loan in Alabama was $254K and the average was $651K. The median starting interest rate was 10.25%, 87.2% of loans had a variable rate, and the median term was 120 months.
Source and method
Figures come from the U.S. Small Business Administration's 7(a) and 504 FOIA loan files (as of September 30, 2026), aggregated by FSE. Loans are assigned to Alabama by project state. Profile figures cover FY2024-FY2026 loans that were not cancelled. We publish aggregates only: no borrower names or addresses, and no figure based on fewer than 10 loans. Full details are in the methodology, and every state's figures can be downloaded as CSV.
Compare nearby states by volume: Louisiana, Oklahoma, Kansas, Iowa, or see all states.