SBA Lending · Updated Q1 2026
SBA 7(a) Approval Rates by State — 2026 Index
An institutional benchmark of SBA 7(a) approval probability by state, compiled from Inflection Financing underwriting data and aggregated SBA disclosure filings. Use this index to set expectations before applying — states with lower approval rates typically reflect higher decline-for-collateral patterns rather than borrower quality.
The data
Approval rates and median loan sizes for SBA 7(a) applications across all 50 states, ranked.
| State | Approval rate | Median loan |
|---|---|---|
| Texas | 67% | $487K |
| Florida | 64% | $412K |
| California | 61% | $598K |
| Georgia | 63% | $398K |
| North Carolina | 65% | $372K |
| Tennessee | 66% | $341K |
| Arizona | 62% | $405K |
| Colorado | 60% | $461K |
| New York | 55% | $612K |
| Illinois | 58% | $427K |
| Ohio | 61% | $338K |
| Pennsylvania | 59% | $365K |
| Washington | 60% | $483K |
| Massachusetts | 57% | $542K |
| Virginia | 62% | $394K |
Methodology
Approval rates calculated as (approved 7(a) applications) / (complete applications submitted) over trailing 12 months. Median loan size weighted by SBA SOP 50 10 7 underwriting categories. Source: Inflection Financing in-house underwriting log + SBA FOIA data.
Key takeaways
- →Sunbelt states (TX, FL, GA, TN, NC) show the highest approval rates — driven by stronger small-business formation and lower median loan sizes.
- →Coastal states (NY, MA, CA) have higher median loan sizes but lower approval rates due to tighter DSCR thresholds on larger requests.
- →Working with a Preferred Lender (PLP) like Inflection Financing raises effective approval rates 8–15 points vs non-preferred lenders.
Citation: Inflection Financing Commercial Lending Data, "SBA 7(a) Approval Rates by State — 2026 Index" (Q1 2026). Available at inflection-financing.com/data/sba-approval-rates-by-state-2026.
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