Top CPA Firm Lenders
| Rank | SBA Lender | SBA Lenders HQs | # of Loans | Avg Loan | Avg Rate |
|---|---|---|---|---|---|
| 1 | United Midwest Savings Bank | De Graff, OH | 54 | $811,130 | 9.1% |
| 2 | U.S. Bank | Cincinnati, OH | 32 | $571,438 | 8.5% |
| 3 | Live Oak | Wilmington, NC | 31 | $575,790 | 9.4% |
| 4 | Huntington Bank | Columbus, OH | 11 | $292,182 | 9.8% |
| 5 | Celtic Bank | Salt Lake City, UT | 11 | $438,936 | 9.7% |
| 6 | Noah Bank | Miami, FL | 9 | $176,667 | 11.1% |
| 7 | Newtek Bank | Miami, FL | 9 | $176,667 | 11.1% |
| 8 | Columbia Bank | Lake Oswego, OR | 7 | $388,300 | 11.1% |
| 9 | M&T | Buffalo, NY | 6 | $67,750 | 11.9% |
| 10 | CenTrust Bank | Northbrook, IL | 6 | $191,000 | 10.7% |
| 11 | Wells Fargo | Sioux Falls, SD | 5 | $471,860 | 7.0% |
| 12 | TD Bank | Wilmington, DE | 5 | $104,020 | 10.1% |
| 13 | JPMorgan Chase Bank | Columbus, OH | 5 | $301,140 | 9.3% |
| 14 | UMB Bank | Kansas City, MO | 4 | $829,700 | 8.1% |
| 15 | Brookline, MA | 4 | $2,797,500 | 9.1% | |
| 16 | America First Federal Credit Union | Brookline, MA | 4 | $2,797,500 | 9.1% |
| 17 | Beacon Bank | Brookline, MA | 4 | $2,797,500 | 9.1% |
| 18 | OakStar Bank | Springfield, MO | 4 | $813,875 | 8.8% |
| 19 | Truliant FCU | Winston-Salem, NC | 3 | $1,179,500 | 9.8% |
| 20 | First Internet Bank of Indiana | Fishers, IN | 3 | $621,333 | 9.2% |
Recent CPA Firm Loan Activity
| Industry | Year | Qtr | # of Loans | Avg Loan | Avg Rate* |
|---|---|---|---|---|---|
| Offices of Certified Public Accountants | 2026 | 2 | 58 | $503,955 | 9.1% |
| Offices of Certified Public Accountants | 2026 | 1 | 108 | $491,148 | 9.4% |
| Offices of Certified Public Accountants | 2025 | 4 | 86 | $676,123 | 9.1% |
| Offices of Certified Public Accountants | 2025 | 3 | 116 | $513,731 | 9.8% |
| Offices of Certified Public Accountants | 2025 | 2 | 63 | $595,002 | 9.4% |
| Offices of Certified Public Accountants | 2025 | 1 | 130 | $530,279 | 9.6% |
| Offices of Certified Public Accountants | 2024 | 4 | 124 | $554,227 | 9.9% |
| Offices of Certified Public Accountants | 2024 | 3 | 106 | $525,675 | 10.7% |
| Offices of Certified Public Accountants | 2024 | 2 | 70 | $536,300 | 10.6% |
| Offices of Certified Public Accountants | 2024 | 1 | 89 | $482,482 | 11.0% |
| Offices of Certified Public Accountants | 2023 | 4 | 69 | $528,903 | 10.7% |
| Offices of Certified Public Accountants | 2023 | 3 | 74 | $374,258 | 10.6% |
| Offices of Certified Public Accountants | 2023 | 2 | 38 | $413,313 | 10.2% |
| Offices of Certified Public Accountants | 2023 | 1 | 43 | $364,228 | 10.0% |
| Offices of Certified Public Accountants | 2022 | 4 | 68 | $568,281 | 8.8% |
| Offices of Certified Public Accountants | 2022 | 3 | 53 | $312,142 | 7.4% |
| Offices of Certified Public Accountants | 2022 | 2 | 40 | $459,700 | 5.9% |
| Offices of Certified Public Accountants | 2022 | 1 | 39 | $546,310 | 5.6% |
| Offices of Certified Public Accountants | 2021 | 4 | 46 | $771,833 | 5.1% |
| Offices of Certified Public Accountants | 2021 | 3 | 65 | $668,637 | 5.1% |
SBA Loans for CPA Firms: A Comprehensive Guide to Financing Your Practice
Securing financing is a critical step for Certified Public Accounting (CPA) firms looking to expand, acquire new practices, or enhance their operations. The U.S. Small Business Administration (SBA) provides loan programs designed to meet the unique needs of professional service firms, including CPA practices. However, while SBA loans can be an excellent source of funding, navigating the application process requires careful preparation and awareness of potential hurdles.
Understanding SBA Loan Programs for CPA Firms
The SBA offers several loan options tailored to small businesses, but the two most relevant for CPA firms are:
SBA 7(a) Loan Program
The SBA 7(a) loan program is the most popular and flexible financing option for small businesses, including CPA firms. This loan can be used for various purposes, such as working capital, equipment purchases, business acquisitions, and debt refinancing. Key features of the SBA 7(a) loan include:
- Loan amounts up to $5 million.
- Repayment terms of up to 10 years for working capital and 25 years for real estate.
- Interest rates typically tied to the prime rate.
For CPA firms, this loan is particularly useful for acquiring another practice or funding an expansion.
Top SBA Lenders for CPA Firms
Choosing the right lender is essential for a smooth loan approval process. According to data from SBALenders.com, the following financial institutions have a strong track record of funding CPA firms:
- United Midwest Savings Bank: A leading SBA lender for CPA firms, this bank has funded 68 loans in the industry, with an average loan amount of $884,259 and an average interest rate of 10.6%.
- Live Oak Bank: This bank specializes in professional service firms and offers streamlined application processes with loan amounts ranging from $10,000 to $500,000.
Common Reasons for SBA Loan Declines
While SBA loans offer many benefits, not all applications are approved. The most common reasons for SBA loan rejections in CPA firm acquisitions stem from the “big three”:
- Insufficient Down Payment – Most SBA lenders require a minimum of 10% equity injection. If a buyer lacks this amount, approval is unlikely.
- Lack of Industry Experience – SBA lenders prefer borrowers with relevant industry experience to ensure they can successfully operate the acquired business.
- Inadequate Cash Flow – The target business must generate sufficient cash flow to cover loan payments. If financials are weak, lenders will likely decline the application.
Secondary factors that can also lead to rejection include:
- Low Credit Score – A personal credit score below 680 raises concerns about the borrower’s financial responsibility.
- Lack of Liquidity – After injecting the required equity, borrowers should still have at least 10% of the loan amount in liquid reserves. Lenders want to ensure that borrowers have a financial cushion for unforeseen expenses.
Benefits of SBA Loans for CPA Firms
Despite the challenges, SBA loans offer significant advantages for CPA firms:
- Lower Down Payments – Borrowers can access capital without a significant upfront investment, preserving cash flow.
- Longer Repayment Terms – Extended loan terms reduce monthly payments, making it easier to manage finances.
- Competitive Interest Rates – SBA loans generally feature lower rates than traditional financing options.
- Flexible Use of Funds – Loans can be used for acquisitions, office expansion, equipment upgrades, and refinancing existing debt.
Preparing a Strong SBA Loan Application
To improve the chances of approval, CPA firm buyers should take the following steps:
- Build a Strong Financial Profile – Maintain a credit score above 680 and ensure the business being acquired has a healthy cash flow.
- Increase Liquidity – Keep enough liquid assets to meet post-loan requirements.
- Show Relevant Experience – Highlight prior experience in accounting or business management to reassure lenders of competency.
- Prepare Detailed Documentation – Lenders will require financial statements, tax returns, a business plan, and projections showing the firm’s ability to service the loan.
SBA loans can be a powerful tool for CPA firms looking to acquire, expand, or strengthen their operations. However, securing approval requires careful planning, a strong financial profile, and a clear business strategy. By working with experienced SBA lenders and addressing common pitfalls, CPA firms can successfully navigate the loan process and secure the funding needed for long-term success.