By Mario Bailey · Source: SBA FOIA 7(a) and 504 data, FY2010–2026 (as of 2026-03-31)
Published · Updated
- Overall 7(a) charge-off
- 4.0%
- 7(a) loans analyzed
- 919,729
- Median months to charge-off
- 50
- Coverage
- FY2010–2026
Every rate on this page is the share of FY2010–2026 7(a) approvals marked charged off as of 2026-03-31, a cumulative rate over a mixed-maturity book, comparable across the rows of a table, not a projection of lifetime losses. For the narrative version (what actually predicts a charge-off), see the companion analysis.
By loan size
The steepest gradient in SBA credit: 5.9% under $50k vs 0.7% at $5M and up.
| Loan size | 7(a) loans | Charge-off rate |
|---|---|---|
| Under $50k | 214,425 | 5.9% |
| $50k to $150k | 223,809 | 4.4% |
| $150k to $350k | 195,671 | 4.1% |
| $350k to $1M | 174,070 | 2.5% |
| $1M to $5M | 107,409 | 1.7% |
| $5M and up | 4,345 | 0.7% |
By industry
Sectors with at least 2,000 7(a) loans; sorted highest first.
| Sector | 7(a) loans | Charge-off rate |
|---|---|---|
| Transportation and Warehousing | 50,354 | 5.6% |
| Wholesale Trade | 44,743 | 5.0% |
| Arts, Entertainment, Recreation | 29,194 | 4.6% |
| Retail Trade | 120,902 | 4.5% |
| Information | 10,044 | 4.3% |
| Construction | 104,734 | 4.3% |
| Accommodation and Food Services | 118,454 | 4.2% |
| Educational Services | 13,250 | 4.1% |
| Mining and Extraction | 2,212 | 4.0% |
| Administrative and Support | 46,311 | 3.9% |
| Other Services | 84,725 | 3.8% |
| Professional and Technical Services | 89,591 | 3.7% |
| Manufacturing | 66,543 | 3.5% |
| Real Estate | 21,152 | 2.9% |
| Agriculture, Forestry, Fishing | 12,550 | 2.6% |
| Finance and Insurance | 16,033 | 2.5% |
| Health Care and Social Assistance | 87,183 | 2.4% |
By state
Borrower state, minimum 2,000 loans. 49 jurisdictions qualify; the rest (small states and territories) are excluded rather than shown on thin data. Spread: Florida 5.3% to North Dakota 2.1%.
| State | 7(a) loans | Charge-off rate |
|---|---|---|
| Florida | 54,105 | 5.3% |
| New York | 58,492 | 5.2% |
| Texas | 70,340 | 5.1% |
| New Jersey | 28,033 | 4.9% |
| Hawaii | 4,025 | 4.9% |
| Louisiana | 7,141 | 4.7% |
| Alabama | 6,533 | 4.6% |
| Illinois | 30,983 | 4.6% |
| Missouri | 16,274 | 4.5% |
| Nevada | 7,940 | 4.5% |
| Mississippi | 6,825 | 4.5% |
| Virginia | 14,767 | 4.4% |
| South Carolina | 8,407 | 4.4% |
| Maryland | 14,145 | 4.4% |
| Delaware | 2,698 | 4.3% |
| Iowa | 6,715 | 4.2% |
| California | 111,529 | 4.0% |
| Georgia | 26,138 | 3.9% |
| Oklahoma | 8,099 | 3.9% |
| Arkansas | 5,046 | 3.9% |
| Kentucky | 7,961 | 3.9% |
| Arizona | 18,454 | 3.9% |
| Tennessee | 9,318 | 3.8% |
| Massachusetts | 29,064 | 3.6% |
| Rhode Island | 4,699 | 3.6% |
| Pennsylvania | 30,259 | 3.6% |
| North Carolina | 19,302 | 3.6% |
| Kansas | 7,173 | 3.5% |
| Connecticut | 10,929 | 3.5% |
| Indiana | 19,443 | 3.5% |
| Puerto Rico | 7,699 | 3.4% |
| Ohio | 52,114 | 3.3% |
| Colorado | 23,287 | 3.3% |
| New Mexico | 4,198 | 3.3% |
| Nebraska | 5,803 | 3.3% |
| Utah | 17,244 | 3.1% |
| Minnesota | 25,672 | 3.0% |
| New Hampshire | 8,009 | 3.0% |
| Wisconsin | 21,398 | 3.0% |
| South Dakota | 2,344 | 2.9% |
| Michigan | 35,693 | 2.9% |
| Oregon | 13,717 | 2.9% |
| West Virginia | 2,671 | 2.8% |
| Vermont | 3,373 | 2.6% |
| Washington | 24,805 | 2.6% |
| Maine | 5,292 | 2.5% |
| Montana | 4,311 | 2.1% |
| Idaho | 8,642 | 2.1% |
| North Dakota | 2,679 | 2.1% |
By vintage
Approval fiscal year cohorts. The median charge-off arrives ~50 months after approval, so cohorts after FY2021 are flagged: their rates are incomplete, not better.
| Vintage (FY) | Loans | Charge-off rate | Maturity |
|---|---|---|---|
| 2010 | 54,833 | 6.1% | Seasoned |
| 2011 | 61,693 | 4.8% | Seasoned |
| 2012 | 53,845 | 4.6% | Seasoned |
| 2013 | 54,103 | 4.5% | Seasoned |
| 2014 | 57,929 | 5.1% | Seasoned |
| 2015 | 69,248 | 5.6% | Seasoned |
| 2016 | 70,012 | 6.1% | Seasoned |
| 2017 | 68,648 | 6.7% | Seasoned |
| 2018 | 66,228 | 6.8% | Seasoned |
| 2019 | 58,006 | 5.5% | Seasoned |
| 2020 | 49,417 | 3.1% | Seasoned |
| 2021 | 61,532 | 2.1% | Seasoned |
| 2022 | 56,932 | 3.0% | Not seasoned |
| 2023 | 63,286 | 2.4% | Not seasoned |
| 2024 | 76,235 | 0.6% | Not seasoned |
| 2025 | 84,840 | 0.0% | Not seasoned |
| 2026 | 29,287 | 0.0% | Not seasoned |
These are the market-wide tables. The version your credit committee actually wants is cut to your book: your footprint, your size mix, your industries, benchmarked cell by cell against the market and against named competitors, from the complete public 7(a)/504 record.
Request your institution's benchmarking →Charge-off benchmark FAQ
What is the overall SBA 7(a) charge-off rate?
Across the 919,729 7(a) loans approved FY2010–2026 in the public data, 4.0% are marked charged off as of 2026-03-31. That is a cumulative share of a mixed-maturity book, not an annual loss rate and not a lifetime default rate.
Is a charge-off the same as a default?
No. A borrower can default and then cure, restructure, or be worked out without the loan ever charging off. Charge-off is the further step where the lender writes the balance off and the SBA guaranty is typically purchased, so charge-off rates understate how often loans hit trouble, but they measure realized losses, which is what the public data reports.
Which industries have the highest SBA charge-off rates?
Among sectors with enough loans to be stable, Transportation and Warehousing runs the highest charge-off rate at 5.6% and Health Care and Social Assistance the lowest at 2.4%, roughly a 2x spread. The full table is on this page.
Does loan size affect SBA charge-off rates?
Strongly, and inversely. Loans under $50k charge off at 5.9%; loans of $5M and up at 0.7%. Larger loans mean more collateral, more underwriting, and more established borrowers.
Why do recent years show such low charge-off rates?
Seasoning. The median 7(a) charge-off arrives about 50 months after approval, so cohorts from FY2022 onward simply haven't had time to show their losses. Read young vintages as incomplete, not as better underwriting.
Mario Bailey. (2026). SBA credit benchmarks: charge-off rates by size, industry, state, and vintage. SBA Loan Index. https://sbaloanindex.com/studies/sba-credit-benchmarks/
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