Best SBA lenders in California
| Rank | SBA Lender | SBA Lenders HQs | # of Loans | Avg Interest | Avg Loan |
|---|---|---|---|---|---|
| 1 | U.S. Bank | Cincinnati, OH | 3,076 | 9.7% | $292,655 |
| 2 | Lendistry SBLC | Los Angeles, CA | 825 | 12.2% | $197,236 |
| 3 | Northeast Bank | Lewiston, ME | 721 | 10.7% | $173,182 |
| 4 | Noah Bank | Miami, FL | 621 | 11.0% | $353,004 |
| 5 | Newtek Bank | Miami, FL | 621 | 11.0% | $353,004 |
| 6 | Readycap Lending, LLC | Berkeley Heights, NJ | 570 | 12.4% | $335,888 |
| 7 | Celtic Bank | Salt Lake City, UT | 497 | 10.4% | $481,761 |
| 8 | JPMorgan Chase Bank | Columbus, OH | 483 | 11.0% | $363,568 |
| 9 | Live Oak | Wilmington, NC | 480 | 9.3% | $1,186,119 |
| 10 | Huntington Bank | Columbus, OH | 416 | 10.0% | $457,693 |
| 11 | BayFirst National Bank | Saint Petersburg, FL | 319 | 12.5% | $134,348 |
| 12 | Bank of Hope | Los Angeles, CA | 313 | 9.3% | $660,369 |
| 13 | Wells Fargo | Sioux Falls, SD | 312 | 9.8% | $613,910 |
| 14 | United Midwest Savings Bank | De Graff, OH | 278 | 10.1% | $470,840 |
| 15 | Zions Bank | Salt Lake City, UT | 276 | 9.5% | $319,648 |
| 16 | CDC Small Business Finance | San Diego, CA | 246 | 10.8% | $173,576 |
| 17 | Bank of America | Charlotte, NC | 229 | 7.7% | $550,288 |
| 18 | Harvest Small Business Finance | Laguna Hills, CA | 222 | 9.9% | $1,124,340 |
| 19 | Columbia Bank | Lake Oswego, OR | 171 | 12.1% | $124,199 |
| 20 | CenTrust Bank | Northbrook, IL | 161 | 11.1% | $197,627 |
Get Matched with Top SBA Lenders in California Today!
Ready to explore your financing options? Our SBA lender match tool makes it fast and easy to connect with the right lenders for your business needs.
Why choose us?
- It’s FREE: There’s no cost to you.
- Quick Answers: Know within 24 hours if your deal is financeable.
- No Credit Impact: We don’t pull your credit.
- Save Time: Skip the search and meet lenders already interested in your business.
- Flexible Terms: Enjoy attractive SBA loan terms, including long repayment options and no collateral requirements.
- Expertise You Can Trust: Our founder, Darren King, is a former CPA and finance executive who helps hundreds of borrowers every year connect with top SBA lenders for financing.
Interest rates for SBA loans in California
The table below shows the average interest rates for SBA loans in California during the past few quarters for loans over $50,000. Note that most SBA loans are variable-rate loans, so borrowers may benefit from lower rates in the future if the Federal Reserve lowers interest rates.
| Year | Qtr | # of Loans | Avg Loan | Avg Rate* |
|---|---|---|---|---|
| 2026 | 2 | 1486 | $683,217 | 9.2% |
| 2026 | 1 | 1458 | $766,719 | 9.1% |
| 2025 | 4 | 996 | $728,308 | 9.3% |
| 2025 | 3 | 1461 | $772,079 | 9.8% |
| 2025 | 2 | 1487 | $682,416 | 10.0% |
| 2025 | 1 | 1913 | $637,267 | 10.0% |
| 2024 | 4 | 1676 | $599,099 | 10.3% |
| 2024 | 3 | 1678 | $675,869 | 10.7% |
| 2024 | 2 | 1485 | $620,916 | 10.8% |
| 2024 | 1 | 1206 | $642,460 | 10.9% |
| 2023 | 4 | 1049 | $639,196 | 10.9% |
| 2023 | 3 | 1151 | $712,154 | 10.5% |
| 2023 | 2 | 957 | $710,431 | 10.1% |
| 2023 | 1 | 847 | $722,568 | 9.6% |
| 2022 | 4 | 813 | $843,018 | 8.3% |
| 2022 | 3 | 817 | $899,040 | 7.1% |
| 2022 | 2 | 811 | $955,631 | 5.7% |
| 2022 | 1 | 587 | $964,294 | 5.3% |
| 2021 | 4 | 404 | $853,850 | 5.2% |
| 2021 | 3 | 1185 | $1,256,876 | 4.8% |
| 2021 | 2 | 759 | $1,135,977 | 4.8% |
| 2021 | 1 | 479 | $946,010 | 5.1% |
Top industries receiving SBA loans in California
Here are the top 20 industries in California based on small business loan volume from last year. This information can help you gauge what to expect for your business in terms of interest rates from SBA lenders:
| Rank | Industry (NAICS Description) | # of Loans | Avg Interest | Avg Loan |
|---|---|---|---|---|
| 1 | Full-Service Restaurants | 308 | 9.6% | $568,766 |
| 2 | Limited-Service Restaurants | 180 | 9.7% | $392,587 |
| 3 | Plumbing, Heating, and Air-Conditioning Contractors | 123 | 9.7% | $407,015 |
| 4 | Fitness and Recreational Sports Centers | 123 | 9.8% | $386,559 |
| 5 | General Automotive Repair | 109 | 9.5% | $550,552 |
| 6 | Offices of Dentists | 95 | 9.0% | $846,264 |
| 7 | Residential Remodelers | 91 | 10.1% | $218,686 |
| 8 | Beer, Wine, and Liquor Retailers | 91 | 9.2% | $657,829 |
| 9 | All Other Specialty Trade Contractors | 84 | 9.8% | $414,710 |
| 10 | Snack and Nonalcoholic Beverage Bars | 82 | 9.6% | $477,268 |
| 11 | Beauty Salons | 82 | 9.7% | $147,733 |
| 12 | Administrative Management and General Management Consulting Services | 78 | 10.5% | $167,392 |
| 13 | Gasoline Stations with Convenience Stores | 74 | 8.6% | $2,671,891 |
| 14 | Electrical Contractors and Other Wiring Installation Contractors | 74 | 9.6% | $270,666 |
| 15 | Automotive Body, Paint, and Interior Repair and Maintenance | 70 | 9.7% | $541,891 |
| 16 | Home Health Care Services | 64 | 10.1% | $444,309 |
| 17 | Offices of Lawyers | 62 | 9.5% | $324,226 |
| 18 | Offices of Real Estate Agents and Brokers | 60 | 10.3% | $276,507 |
| 19 | Tax Preparation Services | 58 | 9.6% | $466,395 |
| 20 | Child Care Services | 58 | 9.2% | $982,088 |
California SBA lenders FAQs
Who are the top SBA lenders in California?
The best SBA lenders in California are those closing the highest number of SBA loans in the state. You can find them listed in the table above. This data is updated quarterly and reflects the rolling 12-month period.
How do I qualify for an SBA loan in California?
To qualify for an SBA loan in California, your business (or the one you’re acquiring) must meet size standards, demonstrate the ability to repay, and have a sound business purpose. Contact an SBA-preferred lender in California or use our SBA Lender Match tool to check your eligibility. Common reasons for disqualification include:
1. Insufficient Cash Flow: Ensure you have enough cash flow to cover SBA loan payments. Use our SBA Maximum Loan calculator to determine your maximum loan amount.
2. Low Credit Score: A credit score of 650 or above is generally required.
3. High Working Capital Needs: Loans over $150,000 primarily for working capital face stricter scrutiny.
4. Business Acquisitions: Lack of industry or relevant experience and insufficient down payment (typically 10% or more) can be disqualifying factors.
Complete our SBA Lender Match tool, and we’ll provide a preliminary assessment of your SBA loan eligibility. We can then connect you with lenders who specialize in California SBA loans.
What is the SBA 7(a) loan program?
The SBA 7(a) loan program is the most popular SBA loan, offering up to $5 million for various business purposes, including working capital, equipment, and real estate. This program is available to businesses throughout California and offers flexible terms. Unlike SBA 504 loans, which require a Certified Development Company (CDC) and full collateralization by real estate, 7(a) loans are quicker and more versatile. At SBAlenders.com, we specialize in assisting with SBA 7(a) loans and can also help with 504 loans if needed.
What is the SBA 504 loan program?
The SBA 504 loan program offers long-term, fixed-rate financing for major assets like real estate and equipment, providing up to $5.5 million. Designed to promote business growth and job creation in California, this program requires both a Certified Development Company (CDC) and an SBA lender to finance portions of the loan. While SBA 504 loans offer significant benefits, they typically take longer to close and require full collateralization, resulting in lower activity compared to SBA 7(a) loans. At SBAlenders.com, we can assist you with securing an SBA 504 loan to support your California business.
Which SBA loan is easiest to get approved for?
SBA loans of $150,000 or less from an SBA preferred lender are the easiest to get approved for. The application process is streamlined, with most lenders focusing primarily on the individual borrower’s credit score rather than the business itself.
What types of businesses are eligible for SBA loans in California?
Most small businesses in California are eligible for SBA loans, including those in manufacturing, retail, service, and agriculture. Certain restrictions apply, so it’s best to consult with your California SBA lender or SBAlenders.com to confirm your eligibility.
Common Ineligible SBA Loan Inquiries we see at SBAlenders.com include:
- Passive Income Businesses: Businesses generating passive income, like rental real estate or apartment purchases, are ineligible for SBA loans, which are designed for active businesses. Hotels are eligible but AirBNBs are not.
- Leasing or Finance Companies: Businesses mainly involved in leasing or financing are not eligible for SBA loans due to their operational nature.
- Venture Capital or Private Investor Consortiums: Entities formed solely to invest in other businesses do not qualify for SBA loans. This includes general partners of special purpose vehicles seeking to leverage equity for investments.
How do I find an SBA-approved lender in California?
Through our SBA Lender Match tool, we can introduce you to three (or more) top SBA lenders who serve the California market. All of the SBA lenders in our network are SBA preferred lenders, and the individual bankers work exclusively on SBA loans.
Can I use an SBA loan to buy a franchise in California?
Yes, SBA loans can be used to purchase a franchise in California or create a startup. In fact, SBA lenders prefer franchises over startups as generally the franchise has already demonstrated success in the marketplace. Your SBA lender can help you navigate the process and secure financing for your franchise purchase.
How can an SBA loan help my small business in California?
SBA loans offer several advantages over conventional loans, making them especially attractive for acquisitions. They have no collateral requirements, no debt covenants, and offer longer repayment terms—10 or 25 years—which result in lower monthly payments. Although SBA loans generally have slightly higher interest rates, these benefits can help your California small business manage cash flow, invest in growth opportunities, and reduce financial strain.
Can I refinance existing debt with an SBA loan in California?
Yes, SBA loans can be used to refinance existing business debt under certain conditions, but in general one SBA loan can’t be used to pay off an existing SBA loan. This can help reduce your interest rate and improve cash flow as SBA loans have ten-year terms or 25 years if real estate. Talk to your SBA lender in California to explore refinancing options.
How do SBA loan guarantees work?
SBA loan guarantees reduce the risk for lenders by backing a portion of the loan amount. This makes it easier for lenders to finance small businesses in California that might not qualify for conventional loans. However, this guarantee doesn’t prevent the lender from pursuing the borrower in the event of a loan default. The lender is required to do so and will require all 20%+ owners of the business to personally guarantee the SBA loan.
What support services are available for small businesses in California?
California Small Business Resources
In addition to California SBA banks, there are several organizations in California that can provide small businesses with valuable guidance and consultation regarding financing and growing their businesses. These organizations offer a range of services, including business counseling, workshops and training, and assistance with obtaining funding.
One such organization is the Small Business Development Centers (SBDC) network in California. The SBDCs are funded in part by the SBA and provide free business counseling and assistance to small businesses throughout the state. The services they offer include business planning, financial analysis, and assistance with obtaining financing. They also offer workshops and training sessions on a variety of topics, including marketing, accounting, and legal issues. To learn more about the SBDC network and to find a center near you, visit their website at https://www.californiasbdc.org/.
Another organization that can provide small businesses with valuable guidance is SCORE, a nonprofit association dedicated to helping small businesses get off the ground, grow, and achieve their goals. SCORE offers free business mentoring, workshops, and educational resources to entrepreneurs and small business owners. They also provide assistance with business planning, marketing, and financial analysis. To learn more about SCORE and to find a chapter near you, visit their website at https://www.score.org/.
Finally, the California Association for Micro Enterprise Opportunity (CAMEO) is a statewide association that works to promote micro-enterprise development and access to capital for small businesses in California. They offer a range of services, including business training, technical assistance, and access to financing. To learn more about CAMEO and to find a member organization near you, visit their website at https://cameonetwork.org/.
By utilizing the resources and expertise of these organizations, small businesses in California can obtain valuable guidance and assistance with financing and growing their businesses. Whether it’s through SBA loans or other forms of financing, these organizations can help entrepreneurs and small business owners achieve their dreams and reach their full potential.
California Small Business Incentives
Small businesses in California can take advantage of a variety of incentive programs designed to encourage growth and development. These programs provide financial assistance, tax credits, and other benefits to small businesses that meet certain criteria.
One organization that offers business incentive programs in California is the Governor’s Office of Business and Economic Development (GO-Biz). GO-Biz offers a range of incentive programs, including tax credits, grants, and loan guarantees, to businesses that create jobs and make capital investments in the state. Some of the specific programs offered by GO-Biz include the California Competes Tax Credit, the California Small Business Loan Guarantee Program, and the California Capital Access Program. To learn more about GO-Biz and their incentive programs, visit their website at https://business.ca.gov/.
Another organization that provides business incentives in California is the California Infrastructure and Economic Development Bank (IBank). IBank offers a variety of financing programs to small businesses, including low-interest loans, disaster relief financing, and microloans. IBank also partners with other organizations, such as the California Small Business Development Centers (SBDCs), to provide additional resources and support to small businesses. To learn more about IBank and their financing programs, visit their website at https://ibank.ca.gov/.
Additionally, the Employment Training Panel (ETP) is a state agency that provides funding to California businesses for employee training and retraining. ETP funding can be used to cover the cost of training programs, such as job-specific skills training, leadership development, and safety training. Small businesses in California with fewer than 100 employees may be eligible for ETP funding. To learn more about ETP and their training programs, visit their website at https://www.etp.ca.gov/.
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is another organization that offers business incentive programs in California. CAEATFA provides financing for businesses that invest in renewable energy, energy efficiency, and advanced transportation technologies. Some of the programs offered by CAEATFA include the Sales and Use Tax Exclusion Program, the California Hub for Energy Efficiency Financing (CHEEF), and the California Capital Access Program for Small Business (CalCAP). To learn more about CAEATFA and their financing programs, visit their website at https://www.treasurer.ca.gov/caeatfa/.
By taking advantage of these incentive programs and working with these organizations, small businesses in California can receive the support they need to grow and thrive. From financing and training to tax credits and grants, these programs can provide small businesses with the resources they need to achieve their goals and make a positive impact on the state’s economy.