SBA Loan Default Rate Analysis
Of 2,136,870 SBA loans since 1991, 228,228 were charged off. Here's where the risk concentrates.
All SBA Loans by Status
Understanding the Numbers
Active — Loan is currently being repaid
Paid in Full — Borrower successfully repaid the loan
Charged Off — Borrower defaulted; lender took a loss
Cancelled — Loan was approved but never disbursed
Committed — Approved and in process of being funded
Default Rates by State
Adjusted default rate — darker colors indicate higher default rates. Click any state for detail.
Default Rates by Industry
Which industries have the highest percentage of charged-off loans?
Default Rates by Loan Size
Are bigger loans riskier? The data suggests the opposite.
Default Rate Heatmap: Industry × Loan Size
| Industry | Under $150K | $150K–$350K | $350K–$500K | $500K–$1M | $1M–$2M | $2M–$5M | $5M+ |
|---|---|---|---|---|---|---|---|
| Agriculture, Forestry, Fishing & Hunting | 7.2% | 5.8% | 8.0% | 12.8% | 4.7% | 2.0% | 0.0% |
| Mining, Quarrying & Oil/Gas Extraction | 8.9% | 6.5% | 6.2% | 8.2% | 11.2% | 3.7% | 3.5% |
| Utilities | 12.1% | 6.2% | 6.2% | 2.2% | 4.2% | 0.0% | 0.0% |
| Construction | 15.5% | 8.1% | 7.6% | 7.8% | 7.3% | 3.3% | 0.5% |
| Manufacturing | 15.1% | 9.2% | 8.8% | 8.3% | 8.4% | 4.0% | 1.1% |
| Wholesale Trade | 21.2% | 8.6% | 7.6% | 7.0% | 5.6% | 2.1% | 1.1% |
| Retail Trade | 20.3% | 12.7% | 10.2% | 9.1% | 7.7% | 2.7% | 1.0% |
| Transportation & Warehousing | 15.3% | 8.3% | 7.8% | 6.6% | 5.7% | 2.8% | 0.0% |
| Information | 20.1% | 9.3% | 9.0% | 8.3% | 7.7% | 3.4% | 0.0% |
| Finance & Insurance | 18.6% | 5.1% | 5.0% | 4.4% | 4.5% | 1.3% | 0.0% |
| Real Estate & Rental/Leasing | 21.4% | 7.9% | 6.7% | 6.4% | 4.3% | 2.2% | 1.4% |
| Professional, Scientific & Technical Services | 14.4% | 5.9% | 5.3% | 4.9% | 4.2% | 1.7% | 0.9% |
| Management of Companies & Enterprises | 12.2% | 3.6% | 2.1% | 2.2% | 1.2% | 0.0% | — |
| Administrative & Support Services | 15.9% | 7.5% | 6.3% | 6.1% | 5.6% | 2.6% | 1.9% |
| Educational Services | 14.5% | 9.8% | 5.3% | 5.3% | 4.4% | 1.1% | 0.0% |
| Health Care & Social Assistance | 8.9% | 5.5% | 5.1% | 5.4% | 4.3% | 1.5% | 0.3% |
| Arts, Entertainment & Recreation | 15.2% | 11.8% | 9.7% | 9.6% | 9.6% | 3.4% | 0.8% |
| Accommodation & Food Services | 16.4% | 14.6% | 11.6% | 10.0% | 9.5% | 3.5% | 1.0% |
| Other Services | 15.8% | 10.3% | 8.8% | 7.4% | 6.5% | 1.9% | 0.0% |
| Public Administration | 14.4% | 9.5% | 9.1% | 5.9% | 0.0% | — | — |
Default Rate Over Time
Adjusted default rate by fiscal year. Note the spike during the 2008 financial crisis and the low rates in recent years (which may rise as newer loans mature).
Adjusted Default Rate by Year
Highest Default Rate States
Lowest Default Rate States
Methodology & Definitions
Charged Off (CHGOFF) means the borrower defaulted and the lender wrote off the remaining balance. This is the most severe outcome for an SBA loan.
Adjusted Default Rate excludes cancelled and committed loans from the denominator. These loans were never disbursed, so including them would artificially lower the default rate. The adjusted rate answers: “Of loans that were actually funded, what percentage defaulted?”
Recency Bias Caveat: Recent loans (2020–2025) have lower default rates partly because they haven't had enough time to default yet. A loan approved in 2024 has only had 1 year of repayment history, while a 2005 loan has 20 years. Take recent-year default rates with a grain of salt.
Data Source: U.S. Small Business Administration FOIA data as of December 31, 2025. Covers all SBA 7(a) and 504 loans since fiscal year 1991.