SBA loans by state
SBA loans in Alabama: 395 approvals in FY 2026, median $300,000
Express was used for only 18% of loans. The median loan, $300,000, was the 6th largest of the 50 states and DC.
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Alabama: 7(a) loans approved last year
395
| Your rate vs. last year’s loans of this size, all states | about the median for this size |
| Alabama: median rate at approval, $250,001 to $350,000 | 9.50% |
| Alabama: median 7(a) loan last year | $300,000 |
| Payment over 10 years, SBA fee added to the loan | $4,011/mo |
Last year’s loans: the 7(a) loans SBA approved from October 1, 2025 to September 30, 2026 (fiscal year 2026), in SBA’s public loan file of September 30, 2026. Rates at approval were set when prime was 6.75% or 7.00%; today: prime rate 7.00% on November 2, 2026. Your rate is compared on its margin over prime, so the change in prime since last year does not count against you.
Alabama, FY 2026: 395 SBA 7(a) approvals for $289.6 million (33rd of the 50 states and DC, SBA file of September 30, 2026). Express was used for only 18% of loans. The median loan, $300,000, was the 6th largest of the 50 states and DC. Credit lines were only 13% of approvals. Franchises took 21% of loans. 35% of loans had their guaranteed part sold to investors. Only 13% of the loans came from lenders based in Alabama. 22% of loans went to businesses not yet open. 91 lenders were active, a wide field for the volume. Borrowers reported 11.9 jobs per loan. The state stood out for loans to insurance agencies and brokerages. 12% of variable loans were priced at the SBA maximum. Today’s cap on a $300,000 variable loan: 11.50%.
Fee notices read and loan file counted by Radif Partners · Editorial policy · Method and sources
| Lender | FY 2026 loans | Median loan | Median variable rate | Lender’s home state |
|---|---|---|---|---|
| Newtek Bank | 66 | $150,000 | 9.75% | Florida |
| Northeast Bank | 26 | $177,000 | 9.75% | Maine |
| Huntington National Bank | 21 | $250,000 | 8.75% | Ohio |
| Live Oak Banking | 19 | $500,000 | 8.75% | North Carolina |
| Sabre Finance | 16 | $142,900 | n/a | Alabama (in-state) |
Express is rarely used
SBA Express made up only 18% of Alabama’s approvals, 4th lowest among the 50 states and DC. Preferred Lenders took 71% and loans processed by SBA itself 10%, so most borrowers here get the full 85% or 75% guaranty.
Among the largest SBA loans in the country
Alabama’s median loan of $300,000 is 6th highest among the 50 states and DC. 39% of its loans were above $350,000, where the variable cap falls to prime plus 3 points and the guaranty fee climbs to 3.5% of the guaranteed part once the loan passes $700,000.
Credit lines are scarce
Only 13% of Alabama’s SBA approvals were revolving lines, 5th lowest among the 50 states and DC. Term loans with a fixed repayment schedule make up the rest.
Franchise lending stands out
21% of Alabama’s loans went to franchise units, 6th highest among the 50 states and DC.
| Loan size | Loans | Median variable rate, FY 2026 | SBA maximum today |
|---|---|---|---|
| $50,000 or less | 49 | 11.75% | 13.50% |
| $50,001 to $250,000 | 129 | 9.75% | 13.00% |
| $250,001 to $350,000 | 61 | 9.50% | 11.50% |
| over $350,000 | 156 | 8.75% | 10.00% |
Many guaranteed parts resold
The guaranteed part of 35% of Alabama’s loans had been sold on the secondary market by the date of the file (23% nationally). The borrower keeps the same lender and terms; the sale lets the lender fund new loans.
Most Alabama loans come from out-of-state lenders
Only 13% of Alabama’s 395 approvals came from a lender based in the state (26% on average). The volume went to lenders that work across many states, led here by Newtek Bank, Northeast Bank and Huntington National Bank. Local lenders also priced lower: their median variable margin was 1.75 points over prime, against 2.75 points for lenders based elsewhere.
Start-ups borrow a large share
22% of Alabama’s loans funded a business that was not yet open (16% nationwide). SBA’s lending rules ask a start-up to put in cash of its own (an equity injection) of at least 10% of the total project cost, $33,333 on a project financed by a median-size loan.
Many small lenders
91 different lenders made at least one Alabama loan, about 23 per 100 loans, one of the widest fields in the country for the volume.
Counties with the most approvals: Jefferson (78), Madison (57) and Mobile (34). Trades: limited-service restaurants (18), full-service restaurants (18), hotels and motels (13), fitness and recreational sports centers (12) and insurance agencies and brokerages (11).
All states compared.