By Mario Bailey · Source: SBA FOIA 7(a) data, as of 2026-03-31
Published · Updated
Loans at the $5M maximum, by fiscal year
Maxed-out loans are rare, 0.5% of all 7(a) approvals, but the annual count has grown roughly 5× since FY2011: from 110 to a record 583 in FY2025, with 234 more in the first half of FY2026.
The businesses that max out
One industry towers over the rest: hotels. The profile is owner-occupied real estate and heavy build-outs, the projects that consume a full $5 million in one loan.
| Industry | Loans at the cap | Share |
|---|---|---|
| Hotels (except Casino Hotels) and Motels | 1,045 | 24.1% |
| Gasoline Stations with Convenience Stores | 152 | 3.5% |
| Car Washes | 106 | 2.4% |
| Lessors of Miniwarehouses and Self-Storage Units | 90 | 2.1% |
| Veterinary Services | 78 | 1.8% |
| Child Care Services | 75 | 1.7% |
| Full-Service Restaurants | 67 | 1.5% |
| Assisted Living Facilities for the Elderly | 56 | 1.3% |
| Offices of Dentists | 51 | 1.2% |
| All Other Amusement and Recreation Industries | 50 | 1.2% |
Not just seasoned businesses
Half of maxed-out loans go to established businesses, but 28.1% went to businesses two years old or younger, 1,222 loans, mostly construction-heavy projects like new hotels. Another 19.8% financed a change of ownership.
26.7% of maxed-out loans (1,161) are franchise loans. The most common brands at the cap: La Quinta by Wyndham (60), Holiday Inn Express (55), Best Western (48), Comfort Inn by Choice Hotels (46), Primrose Schools (38). See the franchise league table for how brands compare on track record.
Who writes the $5M loans
The 10 most active lenders wrote 32.5% of all maxed-out loans, led by specialist national SBA shops rather than local banks.
| Lender | Loans at the cap | Share |
|---|---|---|
| Live Oak Banking Company | 566 | 13.0% |
| Celtic Bank Corporation | 126 | 2.9% |
| GBank | 122 | 2.8% |
| Newtek Small Business Finance, Inc. | 121 | 2.8% |
| Metro City Bank | 94 | 2.2% |
| Newtek Bank, National Association | 94 | 2.2% |
| Bank of Hope | 80 | 1.8% |
| Pinnacle Bank | 76 | 1.7% |
| Byline Bank | 71 | 1.6% |
| Open Bank | 64 | 1.5% |
Where the ceiling gets hit
| State | Loans at the cap | Share |
|---|---|---|
| California | 662 | 15.2% |
| Texas | 504 | 11.6% |
| Florida | 369 | 8.5% |
| Georgia | 298 | 6.9% |
| New York | 249 | 5.7% |
| Washington | 158 | 3.6% |
| Pennsylvania | 138 | 3.2% |
| Illinois | 134 | 3.1% |
| North Carolina | 133 | 3.1% |
| New Jersey | 118 | 2.7% |
What the new $10 million limit changes
Until July 4, 2026, a borrower at the $5 million maximum was done: the cumulative SBA limit across the 7(a) and 504 programs was $5 million. The SBA has now doubled that cumulative limit to $10 million, so an eligible borrower who maxes a 7(a) loan can add up to $5 million more through the 504 program for owner-occupied real estate and major fixed assets. Each loan is still underwritten on its own merits. The 583 borrowers who hit the ceiling in FY2025, and the 234 more in the first half of FY2026, are exactly the businesses the change was built for. Full details in our guide to SBA loan limits.
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Mario Bailey. (2026). Who hits the SBA's $5 million ceiling?. SBA Loan Index. https://sbaloanindex.com/studies/sba-5-million-cap/
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