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Top SBA Lenders in Detroit
| Rank | SBA Lender | SBA Lender HQs | # Loans | Avg Loan | Avg Interest |
|---|---|---|---|---|---|
| 1 | Huntington Bank | Columbus, OH | 85 | $197,007 | 10.0% |
| 2 | Newtek Bank | Miami, FL | 36 | $613,333 | 11.7% |
| 3 | Fifth Third Bank | Cincinnati, OH | 17 | $1,336,547 | 9.2% |
| 4 | First Internet Bank of Indiana | Fishers, IN | 16 | $971,500 | 10.6% |
| 5 | United FCU | Saint Joseph, MI | 9 | $973,944 | 9.9% |
| 6 | Northeast Bank | Lewiston, ME | 7 | $86,886 | 10.8% |
| 7 | JPMorgan Chase Bank | Columbus, OH | 5 | $198,400 | 12.1% |
| 8 | Shoreham Bank | Warwick, RI | 4 | $1,113,750 | 9.4% |
| 9 | BayFirst National Bank | Saint Petersburg, FL | 4 | $150,000 | 13.3% |
| 10 | Celtic Bank | Salt Lake City, UT | 4 | $101,625 | 10.8% |
| 11 | CDC Small Business Finance | San Diego, CA | 4 | $43,750 | 12.9% |
| 12 | Byline Bank | Chicago, IL | 3 | $2,435,333 | 10.6% |
| 13 | Live Oak | Wilmington, NC | 3 | $1,500,000 | 9.3% |
| 14 | Citizens Bank | Elizabethton, TN | 3 | $1,430,833 | 9.1% |
| 15 | Readycap Lending, LLC | Berkeley Heights, NJ | 3 | $258,333 | 11.8% |
| 16 | Towne Bank | Portsmouth, VA | 2 | $1,233,850 | 10.8% |
| 17 | Grasshopper Bank | New York, NY | 2 | $1,151,000 | 10.1% |
| 18 | Milestone Bank | Salt Lake City, UT | 2 | $865,500 | 9.0% |
| 19 | First Bank of the Lake | Osage Beach, MO | 2 | $366,750 | 10.3% |
| 20 | Horizon Bank | Michigan City, IN | 2 | $272,300 | 9.5% |
Top Industries for SBA Loans in Detroit
| Rank | Industry | # Loans | Avg Loan | Avg Interest |
|---|---|---|---|---|
| 6 | Advertising Agencies | 4 | $250,000 | 9.8% |
| 5 | All Other General Merchandise Retailers | 3 | $295,167 | 9.1% |
| 2 | All Other Health and Personal Care Retailers | 2 | $73,500 | 9.8% |
| 10 | Architectural Services | 2 | $620,000 | 8.6% |
| 12 | Beer, Wine, and Liquor Retailers | 24 | $926,858 | 9.8% |
| 14 | Child Care Services | 8 | $173,013 | 10.0% |
| 1 | Distilleries | 3 | $951,000 | 9.8% |
| 13 | Electrical Contractors and Other Wiring Installation Contractors | 3 | $76,333 | 10.1% |
| 12 | General Automotive Repair | 8 | $1,912,500 | 10.8% |
| 11 | General Freight Trucking, Local | 2 | $95,000 | 10.5% |
| 10 | General Freight Trucking, Long-Distance, Truckload | 2 | $205,500 | 9.9% |
| 3 | Glass and Glazing Contractors | 2 | $569,650 | 8.8% |
| 3 | Industrial and Personal Service Paper Merchant Wholesalers | 2 | $50,000 | 9.5% |
| 18 | Limited-Service Restaurants | 4 | $294,400 | 10.9% |
| 1 | Motor Vehicle Parts (Used) Merchant Wholesalers | 8 | $475,000 | 13.0% |
| 3 | Motor Vehicle Towing | 2 | $75,000 | 10.9% |
| 14 | Offices of All Other Miscellaneous Health Practitioners | 9 | $503,178 | 12.1% |
| 10 | Offices of Lawyers | 5 | $190,000 | 11.2% |
| 13 | Offices of Mental Health Practitioners (except Physicians) | 2 | $46,650 | 9.3% |
| 3 | Outpatient Mental Health and Substance Abuse Centers | 2 | $127,250 | 10.3% |
| 16 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | $107,000 | 11.9% |
| 1 | Process, Physical Distribution, and Logistics Consulting Services | 2 | $75,000 | 9.5% |
| 16 | Residential Remodelers | 7 | $143,429 | 10.0% |
| 6 | Retail Bakeries | 2 | $74,650 | 8.6% |
| 8 | Roofing Contractors | 6 | $188,467 | 10.5% |
| 17 | Snack and Nonalcoholic Beverage Bars | 2 | $240,000 | 9.6% |
| 1 | Specialized Freight (except Used Goods) Trucking, Long-Distance | 3 | $25,333 | 9.7% |
| 7 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 3 | $2,459,667 | 8.1% |
| 8 | Tax Preparation Services | 2 | $24,500 | 10.5% |
| 6 | Used Car Dealers | 3 | $288,667 | 10.6% |
Introduction
Small businesses are the backbone of Detroit’s economy, driving job creation and local economic growth. Many entrepreneurs rely on SBA loans in Detroit to access capital for expansion, purchasing equipment, refinancing debt, or acquiring real estate. SBA loans offer competitive interest rates and flexible terms, making them an attractive financing option for business owners who may not qualify for traditional commercial loans.
In this guide, we will explore SBA lending activity in Detroit, highlight the top businesses supported by SBA loans, and provide resources for local entrepreneurs seeking funding.
SBA Lending in Detroit: Last Year Overview
SBA loans played a significant role in supporting Detroit’s small business community last year. Below are key statistics on SBA lending activity in the city:
- Total SBA loans issued: $61.8 million
- Number of SBA loans: 117
- Average loan amount: $528,343
- Average interest rate: 10.84%
- Jobs supported: 1,684
- SBALenders.com city ranking: 52nd nationwide
These figures highlight the significant impact SBA loans have on Detroit’s local economy, providing essential funding to help businesses grow and create jobs.
Success Stories of Small Businesses in Detroit
Several Detroit-based small businesses secured SBA loans last year, helping them expand operations and support local employment. Below are the top four businesses that created the most jobs:
- Somat Engineering Inc. (Engineering Services) – 114 jobs supported
- A-RAY-A 2 LLC (Limited-Service Restaurants) – 70 jobs supported
- Tony & Dean Holdings LLC (Full-Service Restaurants) – 65 jobs supported
- Riviera Hospitality Group Inc. (Full-Service Restaurants) – 50 jobs supported
These businesses represent the diverse range of industries benefiting from SBA loans in Detroit, reinforcing the program’s role in strengthening the local economy.
Overview of the SBA Loan Program in Detroit
The SBA 7(a) loan program is the most common SBA loan option for Detroit business owners. Below are the key details of this program:
- Loan size: Up to $5 million
- Loan term: 10 years for non-real estate, 25 years for real estate
- Interest rates: Negotiated with SBA lenders, typically slightly higher than traditional loans.
- Uses of funds: Buying a business, real estate, equipment, refinancing debt, franchise openings, and working capital
- Down payment: 10%–20%.
- Credit score requirement: 680+ recommended (640–670 is borderline).
- Collateral requirements: No specific collateral required, but lenders must secure available assets
SBA loans are a preferred option for businesses that may not qualify for conventional commercial loans due to strict underwriting standards. They offer lower down payments, longer repayment terms, and no loan covenants, making them a great alternative to traditional financing.
Surrounding Areas
Business in the following cities surrounding Detroit are also served by the top Detroit SBA lenders listed above: Ann Arbor, Dearborn, Farmington Hills, Flint, Grand Rapids, Kalamazoo, Lansing, Livonia, Pontiac, Rochester Hills, Saginaw, Southfield, Sterling Heights, Taylor, Warren.
Resources for Small Businesses in Detroit
If you’re a small business owner in Detroit looking for financial assistance, consider reaching out to these local resources:
- SBA Michigan District Office – Offers SBA loan guidance and support.
- Detroit SCORE Chapter – Provides free mentoring and workshops for business owners.
- Detroit Small Business Development Center (SBDC) – Offers consulting and financial assistance resources.
- Michigan Women’s Business Center – Supports women entrepreneurs with funding and training.
- Detroit Economic Growth Corporation (DEGC) – Assists with funding and business expansion programs.
These organizations can help you navigate the SBA loan process and connect you with the right lenders.
Summary
SBA loans play a crucial role in fueling Detroit’s small business community by providing necessary capital for growth and job creation. With over $61.8 million in SBA loans issued last year, Detroit businesses continue to benefit from this financing option. Entrepreneurs looking to expand should explore SBA lenders in Detroit and leverage available local resources to secure funding.
If you’re searching for SBA loans near me in Detroit, start by connecting with a lender or one of the business development organizations listed above to explore your options.