Lenders approved 20,988 SBA 7(a) loans worth $11.30B for California businesses in fiscal years 2024 through 2026, net of cancellations. That ranks 1st of 52 by number of loans and 1st by dollars. The median loan was $204K at a median starting rate of 10.25%. In FY2026 alone, lenders approved 6,890 California loans for $4.16B before cancellations.
What stands out in California
Little startup lending
Loans to open a new business made up 8.9% of California's 7(a) loans, against 16.1% nationally; counting businesses two years old or younger, the share is 24.2%.
Heavy use of SBA 504
California had 3,795 SBA 504 loans, 0.18 for every 7(a) loan, against 0.10 nationally. The 504 program finances owner-occupied real estate and long-life equipment through a certified development company; in California the most active was The Mortgage Capital Development Corporation (916 loans).
FY2026 in line with the national drop
California approvals went from 9,692 in FY2025 to 6,890 in FY2026 (−28.9%), close to the national −28.1%. The median California loan moved from $150K in FY2024 to $250K in FY2026.
What a typical California SBA loan looks like
| FY2024-FY2026, not cancelled | California | United States |
|---|---|---|
| Median loan | $204K | $175K |
| Average loan | $539K | $508K |
| Median starting rate | 10.25% | 10.25% |
| Variable-rate loans | 85.3% | 86.4% |
| Median term | 120 months | 120 months |
| Loans of $150K or less | 46.0% | 49.0% |
| Loans of $500K or less | 75.3% | 76.9% |
| Loans of $1M or more | 14.6% | 13.6% |
| Startups (loan opens the business) | 8.9% | 16.1% |
| Startups and businesses 2 years old or less | 24.2% | 32.0% |
| Change of ownership (buying a business) | 9.0% | 10.9% |
| Franchise businesses | 7.7% | 11.0% |
| SBA Express loans | 29.2% | 35.8% |
| Jobs supported (reported at approval) | 207,545 | 1,733,816 |
Most frequent franchise brands among California 7(a) loans: The UPS Store (51), AM (26), Gameday Men's Health (24), Paris Baguette (22), Mountain Mike's Pizza (18).
SBA 504 loans in California
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.
| California | United States | |
|---|---|---|
| 504 loans, FY2024-FY2026 (not cancelled) | 3,795 | 18,076 |
| 504 dollars | $4.99B | $20.82B |
| Median 504 loan | $913K | $742K |
| Jobs supported (reported at approval) | 48,389 | 190,338 |
| Most active CDCs | 504 loans |
|---|---|
| The Mortgage Capital Development Corporation | 916 |
| Business Finance Capital | 892 |
| California Statewide Certified Development Corporation | 670 |
| Capital Access Group, Inc. | 190 |
| Ampac Tri-state Cdc, Inc. | 171 |
California 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 | 8,275 | 9,692 | 6,890 |
| Dollars approved | $4.03B | $4.81B | $4.16B |
| Loans not cancelled | 7,327 | 7,766 | 5,895 |
| Median loan | $150K | $213K | $250K |
| Median rate | 11.25% | 10.25% | 9.50% |
| Loans of $150K or less | 51.2% | 45.6% | 40.2% |
| SBA Express share | 30.9% | 26.4% | 30.8% |
FY2026 approvals in California changed by −28.9% from FY2025; nationally the change was −28.1%. See why SBA lending fell in FY2026.
Top SBA 7(a) lenders in California
| Lender | Loans | Share of state |
|---|---|---|
| 1. U.S. Bank, National Association | 2,683 | 12.8% |
| 2. Newtek Bank, National Association | 1,221 | 5.8% |
| 3. Lendistry SBLC, LLC | 1,211 | 5.8% |
| 4. JPMorgan Chase Bank, National Association | 1,090 | 5.2% |
| 5. Northeast Bank | 1,071 | 5.1% |
| 6. Readycap Lending, LLC | 1,023 | 4.9% |
| 7. The Huntington National Bank | 871 | 4.1% |
| 8. Wells Fargo Bank National Association | 849 | 4.0% |
| 9. Live Oak Banking Company | 759 | 3.6% |
| 10. BayFirst National Bank | 691 | 3.3% |
Industries that borrow most in California
| Sector | Loans | Share | Median loan | Median rate |
|---|---|---|---|---|
| Retail | 2,629 | 12.5% | $290K | 10.25% |
| Professional services | 2,612 | 12.4% | $150K | 10.50% |
| Construction | 2,525 | 12.0% | $150K | 10.50% |
| Restaurants and hotels | 2,518 | 12.0% | $317K | 10.00% |
| Health care | 2,046 | 9.7% | $284K | 10.25% |
| Other services (repair, personal care) | 2,030 | 9.7% | $150K | 10.25% |
| Manufacturing | 1,228 | 5.9% | $273K | 10.25% |
| Wholesale trade | 1,141 | 5.4% | $282K | 10.25% |
Where in California the loans go
| County | Loans |
|---|---|
| Los Angeles | 6,145 |
| Orange | 2,348 |
| San Diego | 2,104 |
| Riverside | 1,293 |
| San Bernardino | 1,110 |
| Sacramento | 799 |
| Santa Clara | 789 |
| Alameda | 737 |
| City | Loans |
|---|---|
| Los Angeles | 1,554 |
| San Diego | 876 |
| Sacramento | 416 |
| San Francisco | 398 |
| San Jose | 389 |
| Irvine | 267 |
| Fresno | 249 |
| Riverside | 233 |
Counts only, and only places with at least 10 loans. No individual businesses are listed.
How older loans performed
Of the 9,601 SBA 7(a) loans approved for California businesses in FY2020 and FY2021 (not cancelled), 317 had been charged off by September 30, 2026: 3.3% by count and 0.6% 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 California
California loans are split between the Los Angeles District Office (33% of loans) and the Santa Ana District Office (23% of loans) and the San Francisco District Office (18% of loans) and the San Diego District Office (10% of loans) and the Sacramento District Office (10% of loans) and the Fresno District Office (7% of loans). 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 California
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 California?
Lenders approved 8,275 SBA 7(a) loans for California businesses in FY2024, 9,692 in FY2025 and 6,890 in FY2026, before cancellations. Net of cancelled loans, the three years total 20,988 loans worth $11.30B, plus 3,795 SBA 504 loans worth $4.99B.
Which banks make the most SBA loans in California?
In FY2024 to FY2026 the most active 7(a) lenders in California were U.S. Bank, National Association (2,683 loans, 12.8%), Newtek Bank, National Association (1,221 loans, 5.8%), Lendistry SBLC, LLC (1,211 loans, 5.8%).
What is the typical SBA loan size and rate in California?
The median 7(a) loan in California was $204K and the average was $539K. The median starting interest rate was 10.25%, 85.3% 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 California 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: Texas, Florida, or see all states.