SBA Loans for Construction Companies: FY2025 Approvals by State, Program and Risk

SBA loans for construction companies by state: the FY2025 map

Construction businesses received 11,264 SBA 7(a) and 504 approvals worth $4.56 billion in fiscal year 2025 (October 1, 2024 to September 30, 2025). Relative to the number of construction establishments, approvals were most common in New Hampshire, Ohio and Colorado.

The national rate was 11.93 construction loans per 1,000 private construction establishments in FY2025, against 7.19 loans per 1,000 establishments across all industries (SBA FOIA data; BLS QCEW 2025). New Hampshire led at 27.50, followed by Ohio at 20.01 and Colorado at 19.54. Wyoming (3.94) and Mississippi (4.37) had the lowest rates. The median state was Maryland at 10.23.

Construction company (in this report): A borrower whose loan record carries a NAICS code beginning with 23: construction of buildings (236), heavy and civil engineering (237) or specialty trade contractors (238). NAICS 236220 is commercial and institutional building construction, reported separately.

Approval: A loan the SBA approved in the fiscal year, counted the way SBA counts its totals, including loans later cancelled. Of the FY2025 construction approvals, 1,763 (15.7%) were cancelled by June 30, 2026, leaving 9,501 loans worth $3.97 billion.

The FOIA file reconciles with SBA's own year-end figures: it holds 84,840 FY2025 7(a) and 504 approvals for $45.09 billion, against the 84,400 loans and $44.8 billion SBA announced on September 30, 2025 (SBA). The file's count is 100.5% of the announced figure; the small excess most likely reflects approvals recorded after the announcement.

State table: construction approvals, dollars and loans per 1,000 establishments

California, Florida, New York and Texas accounted for the most construction approvals, but large states do not lead once the count is scaled by the number of construction establishments. In 49 of 51 jurisdictions, construction's share of SBA loans was larger than its share of private establishments.

California had 1,334 construction approvals worth $602.6 million, 12.1% of all SBA loans in the state, while construction made up 5.3% of California's private establishments. Alaska (10.2% of loans vs 11.2% of establishments) and Wyoming (8.5% vs 12.1%) were the only states where construction's loan share was below its establishment share (SBA FOIA data; BLS QCEW 2025).

State profiles: ten states that define the range

The four largest states by count, the leaders and laggards on the per-establishment rate, and the largest year-over-year swings. All figures are FY2025 7(a) and 504 approvals to NAICS 23 borrowers by borrower state.

California. The largest market by count and dollars, and the state with the most 504 construction loans. California had 1,334 construction approvals worth $602.6 million in FY2025 (1,173 7(a), 161 504), an average of $451,737. That is 13.80 loans per 1,000 construction establishments (rank 14 of 51) and $6,235 per establishment. Approvals changed +14.6% from FY2024 (1,164 loans). Construction was 12.1% of the state's SBA loans and 5.3% of its private establishments.

Florida. Second by count, with the highest average loan among the four largest states. Florida had 937 construction approvals worth $509.6 million in FY2025 (855 7(a), 82 504), an average of $543,854. That is 10.81 loans per 1,000 construction establishments (rank 22 of 51) and $5,881 per establishment. Approvals changed -1.3% from FY2024 (949 loans). Construction was 13.4% of the state's SBA loans and 10.1% of its private establishments.

New York. Third by count, almost entirely through 7(a). New York had 755 construction approvals worth $254.3 million in FY2025 (729 7(a), 26 504), an average of $336,780. That is 14.81 loans per 1,000 construction establishments (rank 10 of 51) and $4,987 per establishment. Approvals changed +12.4% from FY2024 (672 loans). Construction was 13.7% of the state's SBA loans and 7.4% of its private establishments.

Texas. Fourth by count but below the national rate per establishment. Texas had 702 construction approvals worth $324.7 million in FY2025 (689 7(a), 13 504), an average of $462,491. That is 10.73 loans per 1,000 construction establishments (rank 24 of 51) and $4,965 per establishment. Approvals changed +10.4% from FY2024 (636 loans). Construction was 10.6% of the state's SBA loans and 7.8% of its private establishments.

Ohio. Second on the per-establishment rate despite the steepest decline among states with 100 or more FY2024 loans. Ohio had 526 construction approvals worth $160.7 million in FY2025 (518 7(a), 8 504), an average of $305,442. That is 20.01 loans per 1,000 construction establishments (rank 2 of 51) and $6,112 per establishment. Approvals changed -25.0% from FY2024 (701 loans). Construction was 15.2% of the state's SBA loans and 7.9% of its private establishments.

Colorado. The largest increase among states with 100 or more FY2024 loans, and the most SBA dollars per construction establishment. Colorado had 414 construction approvals worth $232.1 million in FY2025 (393 7(a), 21 504), an average of $560,637. That is 19.54 loans per 1,000 construction establishments (rank 3 of 51) and $10,954 per establishment. Approvals changed +38.0% from FY2024 (300 loans). Construction was 17.2% of the state's SBA loans and 8.6% of its private establishments.

New Hampshire. The highest rate per construction establishment in the country. New Hampshire had 151 construction approvals worth $43.4 million in FY2025 (136 7(a), 15 504), an average of $287,125. That is 27.50 loans per 1,000 construction establishments (rank 1 of 51) and $7,897 per establishment. Approvals changed +2.0% from FY2024 (148 loans). Construction was 22.1% of the state's SBA loans and 8.5% of its private establishments.

Utah. The second-largest increase among states with 100 or more FY2024 loans. Utah had 245 construction approvals worth $139.5 million in FY2025 (209 7(a), 36 504), an average of $569,439. That is 15.50 loans per 1,000 construction establishments (rank 9 of 51) and $8,827 per establishment. Approvals changed +35.4% from FY2024 (181 loans). Construction was 15.4% of the state's SBA loans and 11.5% of its private establishments.

Mississippi. One of the two lowest rates per establishment. Mississippi had 31 construction approvals worth $11.9 million in FY2025 (30 7(a), 1 504), an average of $382,752. That is 4.37 loans per 1,000 construction establishments (rank 50 of 51) and $1,674 per establishment. Approvals changed -13.9% from FY2024 (36 loans). Construction was 8.8% of the state's SBA loans and 8.2% of its private establishments.

Wyoming. The lowest rate per construction establishment. Wyoming had 14 construction approvals worth $3.3 million in FY2025 (12 7(a), 2 504), an average of $236,250. That is 3.94 loans per 1,000 construction establishments (rank 51 of 51) and $931 per establishment. Approvals changed +40.0% from FY2024 (10 loans). Construction was 8.5% of the state's SBA loans and 12.1% of its private establishments.

Rankings: which states get the most SBA construction loans

Four rankings from the state table: by number of loans, by dollars, by loans per 1,000 construction establishments, and by change from FY2024 among states with at least 100 FY2024 construction loans.

Most loans, FY2025

• 1. California: 1,334 loans
• 2. Florida: 937 loans
• 3. New York: 755 loans
• 4. Texas: 702 loans
• 5. Ohio: 526 loans
• 6. Colorado: 414 loans
• 7. Pennsylvania: 406 loans
• 8. Michigan: 405 loans
• 9. Massachusetts: 385 loans
• 10. Washington: 363 loans

Most dollars, FY2025

• 1. California: $602.6 million
• 2. Florida: $509.6 million
• 3. Texas: $324.7 million
• 4. New York: $254.3 million
• 5. Colorado: $232.1 million

Most loans per 1,000 construction establishments

• 1. New Hampshire: 27.50
• 2. Ohio: 20.01
• 3. Colorado: 19.54
• 4. Connecticut: 18.49
• 5. Nevada: 17.40
• 6. Massachusetts: 16.98
• 7. Michigan: 16.37
• 8. New Jersey: 15.64
• 9. Utah: 15.50
• 10. New York: 14.81

Largest increases, FY2024 to FY2025 (states with 100+ FY2024 loans)

• 1. Colorado: +38.0% (300 to 414)
• 2. Utah: +35.4% (181 to 245)
• 3. Virginia: +32.4% (136 to 180)
• 4. Missouri: +32.2% (146 to 193)
• 5. Connecticut: +28.6% (140 to 180)

Largest decreases, FY2024 to FY2025 (states with 100+ FY2024 loans)

• 1. Ohio: -25.0% (701 to 526)
• 2. Michigan: -6.9% (435 to 405)
• 3. Wisconsin: -3.3% (151 to 146)
• 4. New Jersey: -1.4% (346 to 341)
• 5. Florida: -1.3% (949 to 937)

For a wider view of where commercial builders operate, see the Commercial Builder Opportunity Index, which ranks states on construction demand and workforce measures rather than SBA borrowing.

How construction compares with other industries

Construction was the largest industry sector by number of SBA 7(a) and 504 approvals in FY2025, with 13.3% of loans. By dollars it ranked fourth, with 10.1%, because its loans are smaller than average.

Construction's 11,264 approvals compare with 10,552 for accommodation and food services and 9,541 for retail trade (SBA FOIA data). By dollars, accommodation and food services ($7.87 billion), retail trade ($5.55 billion) and health care ($5.10 billion) were larger than construction ($4.56 billion).

Construction is 8.0% of the nation's private establishments and 6.2% of private employment (BLS QCEW 2025). Its 13.3% share of SBA loans is therefore 1.66 times its establishment share. Per establishment, construction received $4,827 in SBA approvals in FY2025, against $3,819 across all industries.

Average SBA loan for a contractor: 7(a), 504 and SBA Express

The average construction 7(a) loan in FY2025 was $371,596, 77.8% of the all-industry average of $477,571. The median was $150,000. Contractors use small SBA Express loans more than other borrowers.

SBA Express accounted for 4,735 construction 7(a) loans, 44.7% of the total, against 30.9% for all industries (SBA FOIA data). SBA Express loans are capped at $500,000 and carry a guarantee of up to 50% (SBA lender resources). 55.6% of construction 7(a) loans were $150,000 or less, compared with 49.4% across all industries.

Construction 504 loans averaged $917,327 (SBA/CDC portion), against $1,154,126 for all industries. 504 loans finance buildings, land and long-lived equipment and carry a maximum of $5.5 million (SBA 504 loans). Commercial and institutional builders (NAICS 236220) took larger loans than the construction average: $430,292 for 7(a) and $1,315,625 for 504, from small samples of 548 and 32 loans.

Working capital products built for contractors remain a small slice. In FY2025, 115 construction 7(a) loans used CAPLines or Working Capital Pilot processing, including 25 Builders CAPLine loans worth $48.5 million (SBA FOIA data).

Which construction trades borrow

Specialty trade contractors (NAICS 238) took 7,528 of the 11,264 construction approvals, 66.8%. Residential remodelers were the single most common construction industry.

Residential remodelers (NAICS 236118) had 1,807 approvals, followed by plumbing, heating and air-conditioning contractors (1,527) and other specialty trades (1,410). Commercial and institutional builders (NAICS 236220) had 580 approvals worth $277.9 million, up 23.9% in count and 56.4% in dollars from FY2024 (SBA FOIA data). Heavy and civil engineering firms (NAICS 237) had 418 approvals with the highest average size of the three subsectors.

Do SBA loans for construction companies default more? Charge-offs by cohort

For 7(a) loans approved in FY2020, 5.65% of construction loans had been charged off by June 30, 2026, against 4.00% for all industries. The older FY2015 cohort gives a mixed answer: construction was lower by count but higher by dollars. 504 charge-offs were rare in every group.

In the FY2020 7(a) cohort, 248 of 4,386 construction loans that were not cancelled had status CHGOFF by June 30, 2026, a rate 1.41 times the all-industry rate (SBA FOIA data). Gross charge-offs were 1.82% of construction approval dollars, 1.70 times the all-industry 1.07%. Commercial and institutional builders (NAICS 236220) charged off 6.52% of loans, from a base of 230 loans.

The FY2015 7(a) cohort is almost fully resolved: only 3.5% of construction loans and 5.9% of all loans were still active. Construction charged off 6.04% of loans by count, below the 6.85% all-industry rate, but 4.61% of dollars, above the 3.01% all-industry rate. Fewer construction loans failed, but the ones that did left larger unpaid balances relative to the money lent than in other industries.

Business survival is a separate question from loan performance. CB&C's construction business failure rate report tracks how many construction establishments close within one, five and ten years.

FY2026 so far: a shutdown month and slower approvals

From October 2025 through June 2026, construction approvals fell 34.4% from the same months a year earlier, to 5,879. Excluding October, when the federal shutdown halted approvals, the decline was 27.1%.

The FOIA file contains no 7(a) or 504 approvals dated October 2025. The SBA said the 43-day funding lapse halted approvals in both programs and estimated that $5.3 billion in lending to about 10,000 small businesses was not delivered (SBA, November 13, 2025).

The slowdown began before the shutdown. Monthly construction approvals fell from 1,235 in May 2025 to 580 in June 2025 and have not returned to the early-2025 level. A new version of the SBA's lending rulebook, SOP 50 10 8, took effect June 1, 2025 (SBA SOP 50 10), and the SBA has said it implemented stricter underwriting standards in 2025 (SBA, September 30, 2025). The timing matches, but the loan data alone cannot show cause. All industries also fell, by 22.8% for November to June against 27.1% for construction, so most of the decline is not specific to construction.

Construction's share of approvals held at 12.98% in the first three quarters of FY2026, close to its 13.28% share in FY2025. For bank construction lending outside SBA programs, see the construction lending tracker.

Program rules that shape SBA lending to contractors

Loan caps, guarantee levels and size standards set which contractors can use each program. Several rules changed in 2026.

• 7(a): maximum loan $5 million (SBA 7(a) loans); SBA guarantees 85% of loans of $150,000 or less and 75% above that, with a maximum guaranteed exposure of $3.75 million (SBA lender resources).
• SBA Express: maximum $500,000, guarantee up to 50%; 7(a) Small: maximum $350,000 (SBA lender resources).
• 504: maximum $5.5 million for the SBA/CDC portion, for buildings, land and equipment with a useful life of at least 10 years (SBA 504 loans).
• Builders CAPLine: finances small general contractors building or rehabilitating residential or commercial property for resale; maturity up to 60 months plus construction time (SBA lender resources).
• 7(a) Working Capital Pilot: project-based lines of credit up to $5 million, up to 100% of direct project costs, guarantee fee of 0.25% for the first 12 months and 0.275% for each later 12-month period, terms up to 60 months (SBA, March 3, 2026).
• Combined limit: from July 4, 2026, a borrower who takes a 7(a) loan first can hold up to $5 million in 7(a) and up to $5 million in 504, $10 million in total, up from a $5 million cumulative limit; SBA named construction among the industries it expects to use the change (SBA, May 18, 2026).
• Size standards: a NAICS 236220 builder qualifies as small with average annual receipts up to $45.0 million; most specialty trade codes (NAICS 238) use $19.0 million (13 CFR 121.201).

7(a) and 504: 7(a) is the SBA's general guaranteed loan program, used for working capital, equipment, real estate and business purchases. 504 loans are made with a Certified Development Company and a private lender and fund major fixed assets such as buildings and long-life equipment.

State-by-state findings

1. FY2025 (October 2024 to September 2025): 10,583 SBA 7(a) loans worth $3.93 billion went to U.S. construction businesses (NAICS 23).^[2]
2. FY2025: 681 SBA 504 loans worth $624.7 million (SBA/CDC portion) went to U.S. construction businesses.^[4]
3. FY2025: construction held 13.3% of all U.S. SBA 7(a) and 504 approvals, the largest share of any two-digit NAICS sector, and 10.1% of approval dollars.^[2][4]
4. 2025: construction was 8.0% of U.S. private establishments, so its share of SBA loans was 1.66 times its establishment share.^{[2][4][15][17]}
5. FY2025: the United States had 11.93 SBA construction loans per 1,000 construction establishments, compared with 7.19 per 1,000 establishments in all industries.^{[2][4][15][17]}
6. FY2025: New Hampshire had the highest rate, 27.50 construction loans per 1,000 construction establishments; Wyoming had the lowest, 3.94.^[2][4][15]
7. FY2025: California led all states with 1,334 construction approvals worth $602.6 million, followed by Florida (937) and New York (755).^[2][4]
8. FY2024 to FY2025: Colorado construction approvals rose 38.0% and Ohio approvals fell 25.0%, the largest moves among states with 100 or more FY2024 loans.^[2][4]
9. FY2025: the average U.S. construction 7(a) loan was $371,596 and the median $150,000, against an all-industry average of $477,571.^[2]
10. FY2025: 44.7% of U.S. construction 7(a) loans used SBA Express, against 30.9% of all 7(a) loans.^[2][12]
11. FY2025: commercial and institutional builders (NAICS 236220) received 580 SBA loans worth $277.9 million, up 23.9% in count from FY2024.^[2][4]
12. FY2020 7(a) cohort, status at June 30, 2026: 5.65% of U.S. construction loans charged off, 1.41 times the all-industry rate of 4.00%.^[2][19]
13. FY2015 7(a) cohort: construction charged off 6.04% of loans by count, below the all-industry 6.85%, but 4.61% of dollars, above 3.01%.^[3]
14. October 2025 to June 2026: U.S. construction approvals were 5,879, down 34.4% from the same months of FY2025; no approvals are dated October 2025.^[2][4][7]

Rankings and ratios we derived

Download the calculations (CSV)

Executive summary

• Construction businesses received 11,264 SBA 7(a) and 504 approvals worth $4.56 billion in FY2025, up 7.7% in count and 22.0% in dollars from FY2024.
• Construction was the largest industry sector by number of SBA loans, with 13.3% of all approvals, and fourth by dollars with 10.1%.
• Nationally there were 11.93 construction loans per 1,000 construction establishments, against 7.19 per 1,000 establishments across all industries.
• New Hampshire (27.50), Ohio (20.01) and Colorado (19.54) had the highest rates per 1,000 construction establishments; California had the most loans (1,334).
• The average construction 7(a) loan was $371,596, below the all-industry $477,571; 44.7% of construction 7(a) loans were SBA Express loans.
• Of FY2020 7(a) construction loans, 5.65% had charged off by June 30, 2026, against 4.00% for all industries; the cohort is still open.
• In the first three quarters of FY2026, construction approvals fell 34.4% from a year earlier, including a month with no approvals during the shutdown.

Frequently asked questions

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Methodology

Data: the SBA 7(a) and 504 FOIA loan-level files published on data.sba.gov, with data as of June 30, 2026 (the latest quarterly release when accessed on 2026-10-07): 7(a) FY2020 to present, 7(a) FY2010 to FY2019 and 504 FY2010 to present. Fields used: ApprovalFY, ApprovalDate, NaicsCode, BorrState, GrossApproval, LoanStatus, ProcessingMethod and GrossChargeOffAmount, as defined in the SBA data dictionary. Borrower names were not read into the analysis and no borrower is named.

Selection: construction means a NaicsCode beginning with 23; NAICS 236220 is reported separately. Fiscal year follows ApprovalFY (FY2025 = approvals from 2024-10-01 to 2025-09-30, checked against ApprovalDate). States are by borrower state; Puerto Rico appears in national totals only. Only Tier 1 sources are cited: SBA, SBA Office of Inspector General, BLS, Census Bureau and the eCFR.

Counting rule and conflicts: approvals include loans later cancelled, because that is how the SBA reports its totals. With this rule the file gives 84,840 FY2025 approvals against the 84,400 SBA announced on 2025-09-30, a 100.5% match; the small excess reflects approvals booked after the announcement. Counts net of cancellations are given in the fact sheet. For 504 loans GrossApproval is the SBA/CDC debenture amount only. The SBA's 504 page states a $5 million figure in its summary and $5.5 million as the maximum; this report uses the maximum.

Derived metrics: loans per 1,000 establishments divide FY2025 approvals by BLS QCEW 2025 annual-average private establishments (own_code 5) for NAICS 23, 236220 or all industries. Charge-off shares use cohorts of loans approved in FY2015 and FY2020, excluding cancelled loans, and divide loans with status CHGOFF by all loans in the cohort; the dollar version divides gross charge-off amounts by approval amounts. Every formula and input row is in derived_metrics.csv, and scripts/analyze.py reproduces the aggregates from the raw files.

Limitations: the FOIA file shows approvals, not applications, so it cannot measure approval rates. Active loans are withheld under FOIA Exemption 4 (status EXEMPT), so recent cohorts are incomplete and charge-off rates will rise as they mature. NAICS codes are recorded by lenders and may not match a firm's main activity. Establishments are locations, not firms. Dollar figures are nominal. FY2026 figures cover October 2025 to June 2026 only.

Last updated 2026-10-07. The next SBA FOIA file (data as of 2026-09-30) is expected about one month after quarter end; this report will be refreshed then.

This report presents published data with its limitations. It is not legal, financial or investment advice.

Sources, ranked by quality

Tier 1: primary and official sources (19)

• [1] U.S. Small Business Administration. 7(a) & 504 FOIA dataset page (quarterly; files as of June 30, 2026). FY1991 to 2026-06-30. Accessed 2026-10-07.
• [2] U.S. Small Business Administration. FOIA 7(a) loan-level file, FY2020 to present, as of 2026-06-30. FY2020 to 2026-06-30. Accessed 2026-10-07.
• [3] U.S. Small Business Administration. FOIA 7(a) loan-level file, FY2010 to FY2019, as of 2026-06-30. FY2010 to FY2019. Accessed 2026-10-07.
• [4] U.S. Small Business Administration. FOIA 504 loan-level file, FY2010 to present, as of 2026-06-30. FY2010 to 2026-06-30. Accessed 2026-10-07.
• [5] U.S. Small Business Administration. 7(a) and 504 FOIA data dictionary. Current. Accessed 2026-10-07.
• [6] U.S. Small Business Administration. SBA delivers record capital to small businesses in FY25 (news release, 2025-09-30). FY2025. Accessed 2026-10-07.
• [7] U.S. Small Business Administration. Shutdown blocks SBA from delivering $5 billion to small businesses (news release, 2025-11-13). Oct to Nov 2025. Accessed 2026-10-07.
• [8] U.S. Small Business Administration. SBA doubles cumulative 7(a) and 504 loan limit to $10 million (news release 26-52, 2026-05-18). Effective 2026-07-04. Accessed 2026-10-07.
• [9] U.S. Small Business Administration. SBA highlights working capital loans for U.S. homebuilders (news release 26-33, 2026-03-03). 2026. Accessed 2026-10-07.
• [10] U.S. Small Business Administration. 7(a) loans (program page). Current. Accessed 2026-10-07.
• [11] U.S. Small Business Administration. 504 loans (program page). Current. Accessed 2026-10-07.
• [12] U.S. Small Business Administration. SBA lender resources: 7(a) loan types, terms and CAPLines. Current. Accessed 2026-10-07.
• [13] U.S. Small Business Administration. SOP 50 10: Lender and Development Company Loan Programs (version history). Versions to 2026-10-01. Accessed 2026-10-07.
• [14] National Archives, Office of the Federal Register. 13 CFR 121.201, size standards by NAICS code (eCFR). Current as of 2026-10-01. Accessed 2026-10-07.
• [15] U.S. Bureau of Labor Statistics. QCEW open data, 2025 annual averages, NAICS 23 Construction. 2025 annual average. Accessed 2026-10-07.
• [16] U.S. Bureau of Labor Statistics. QCEW open data, 2025 annual averages, NAICS 236220. 2025 annual average. Accessed 2026-10-07.
• [17] U.S. Bureau of Labor Statistics. QCEW open data, 2025 annual averages, total all industries. 2025 annual average. Accessed 2026-10-07.
• [18] U.S. Census Bureau. State population totals, Vintage 2025 (NST-EST2025-ALLDATA). July 1, 2025. Accessed 2026-10-07.
• [19] SBA Office of Inspector General. Report 21-03: Evaluation of the CARES Act Debt Relief to 7(a) Borrowers. 2020. Accessed 2026-10-07.