# SBA loans for hardware stores

**Short answer:** SBA approved 306 loans to hardware stores since October 2023, with a median of $350,000. Borrowers paid a median of Prime plus 2 percentage points at approval, against Prime plus 2.75 percentage points for all SBA 7(a) loans. Source: SBA 7(a) loan file, June 30, 2026.

Canonical page: https://www.sbaexpress.loans/industries/hardware-retailers/
Data as of: 2026-06-30

These figures come from SBA's public loan file for the 7(a) program, which includes SBA Express. They cover NAICS 444140, Hardware Retailers. The loans were approved from October 1, 2023 to June 30, 2026. The file lists approvals only, so it shows what lenders funded, not who applied or who was turned down.

## The 2022 NAICS change

Through FY2021, these loans carried 2017 NAICS code 444130.

NAICS codes were revised in 2022, and lenders moved these businesses to code 444140 during FY2022 and FY2023. Most of the rise in loans under 444140 in those years is that change of code. The older loans are on [NAICS 444130, Hardware stores](https://www.sbaexpress.loans/industries/hardware-stores/).

**SBA loans by fiscal year under each code, Oct 2019 to Jun 2026**

| Fiscal year | NAICS 444130 (2017) | NAICS 444140 (2022) | Codes together |
| --- | --- | --- | --- |
| FY2020 | 110 | 0 | 110 |
| FY2021 | 166 | 0 | 166 |
| FY2022 | 43 | 72 | 115 |
| FY2023 | 7 | 82 | 89 |
| FY2024 | 9 | 105 | 114 |
| FY2025 | Fewer than 5 | 115 | 116 to 119 |
| FY2026 (to June 30) | 0 | 86 | 86 |

A count of 1 to 4 loans shows as Fewer than 5, so a total that includes one is shown as a range. The last column adds the codes shown. Some businesses in this trade may be filed under other codes.

## What lenders check

Each lender sets its own checklist. SBA sets the basic eligibility tests.

A lender reviewing a loan to hardware stores looks at the business's numbers and these items for the trade:

- Inventory by department and the turnover of slow items such as plumbing and electrical fittings
- Contractor accounts on invoice and how quickly they pay, since a handful of builders can make up much of the credit sales
- Membership terms with the buying cooperative or franchisor, including patronage dividends and any stock the owner must hold

What SBA sets and what the lender sets

Under SOP 50 10 8.1, SBA sets no minimum credit score; the lender applies its own credit standards. To qualify, a business must be an operating, for-profit business located in the United States that is small under SBA size standards and can show a need for the credit. Source: SOP 50 10 8.1: Sec. B, Ch. 2, Para. C.2; SBA Procedural Notice 5000-876777; 13 CFR § 120.100.

## Common uses of the money

Businesses like these use SBA loans for:

- A paint mixing station and tinting equipment
- A rental fleet of power tools, generators and small equipment
- Seasonal inventory for lawn, garden and snow removal

## The cash cycle

Suppliers and buying cooperatives bill on terms, while walk-in customers pay at the counter and contractor accounts settle later. Spring and fall bring peaks, so inventory builds before each season.

## Collateral

Inventory, rental equipment, delivery vehicles and contractor receivables are the usual collateral, with the store building added if owned.

SBA collateral and guarantee rules

On an SBA Express loan of $50,000 or less, collateral is not required. Above that, the lender may use its own collateral policies for similar non-SBA loans. Under SOP 50 10 8.1, a loan request must not be declined solely because collateral is inadequate.

Every owner of 20% or more of the business must give an unlimited personal guarantee. Source: SOP 50 10 8.1: App. 19, Para. B.3; App. 19, Para. A (p. 404); Sec. A, Ch. 5, Para. A.1 (p. 93); 13 CFR § 120.160(a).

## How much they borrow

59% of these loans were $500,000 or less, the range where SBA Express is available.

Share of 306 loans by size, Oct 2023 to Jun 2026

- $50,000 or less: 18%
- $50,001 to $150,000: 20%
- $150,001 to $350,000: 12%
- $350,001 to $500,000: 9.2%
- $500,001 to $1,000,000: 16%
- $1,000,001 to $2,000,000: 11%
- Over $2,000,000: 13%

Bars show each band's share of the loans.

The median loan was $350,000, larger than the $150,300 median for all SBA 7(a) loans. Half of the loans fell between $100,000 and $1 million. The most common size band was $50,001 to $150,000.

By business age, 42.5% had operated for more than 2 years and 15% for 2 years or less. 18% were startups opening with the loan, and 24% paid for a change of ownership.

## What they paid

The median loan priced at Prime plus 2 percentage points, 0.75 points below the median for all SBA 7(a) loans (Prime plus 2.75 percentage points).

9.50%: Median rate at approval

Prime + 2: Median spread over Prime

Prime + 2.75: All industries, median spread

The median rate at approval was 9.50% on loans approved October 1, 2023 to June 30, 2026. Rates in SBA's file are the initial rates when the loans were approved. On a variable-rate loan the rate then moves with Prime, so these are not today's rates.

SBA's maximum rate today

SBA caps a variable rate by loan size. For a loan of $250,001 to $350,000, the cap is Prime plus 4.5 percentage points. The typical loan here, $350,000, is in that range. With Prime at 7.00% as of Nov 10, 2026, the maximum is 11.50% today. Source: SOP 50 10 8.1: App. 18, Para. A.2 (p. 395); 13 CFR § 120.214(d)(3).

## How the money comes

29% of the loans went through SBA Express and 24.5% were lines of credit. The median term was 10 years.

28.8%: Through SBA Express

24.5%: Lines of credit

10 years: Median term

Across all industries, 36% of loans went through SBA Express and 28% were lines of credit. Express counts here include Export Express.

SBA Express in brief

An SBA Express loan can be as large as $500,000, and SBA guarantees 50% of it. On an Express loan, the lender makes the credit decision without prior SBA review. SBA's procedures also say only a lender with SBA Express authority can make one. Source: SOP 50 10 8.1: Sec. B, Ch. 2, Para. B.1 (p. 126); App. 16, Para. B.2; Sec. B, Ch. 2, Para. C.2; Sec. B, Ch. 2 (p. 125).

The median term was 10 years (120 months). For working capital, SBA's maximum term is 10 years. For equipment, it is 10 years, or up to 15 years if the IRS asset class useful life supports it. Source: SOP 50 10 8.1: App. 17, Para. A.1 (p. 390); App. 17, Para. A.2 (p. 390).

## Who lends

Live Oak Banking Company made the most loans, 61 of 306 (20%).

**Largest lenders by loans, Oct 2023 to Jun 2026**

| Lender | Type | Loans | Share of loans |
| --- | --- | --- | --- |
| [Live Oak Banking Company](https://www.sbaexpress.loans/sba-express-lenders/live-oak-banking-company/) | Bank | 61 | 19.9% |
| [The Huntington National Bank](https://www.sbaexpress.loans/sba-express-lenders/the-huntington-national-bank/) | Bank | 22 | 7.2% |
| [Newtek Bank](https://www.sbaexpress.loans/sba-express-lenders/newtek-bank/) | Bank | 14 | 4.6% |
| [Wells Fargo Bank](https://www.sbaexpress.loans/sba-express-lenders/wells-fargo-bank/) | Bank | 12 | 3.9% |
| [TD Bank](https://www.sbaexpress.loans/sba-express-lenders/td-bank/) | Bank | 10 | 3.3% |

Lenders are ranked by loans and listed only when they made 5 or more. Janover Capital LLC does not represent these lenders, and a lender's past loans do not describe its current credit policy.

See every lender on the [SBA Express lenders](https://www.sbaexpress.loans/sba-express-lenders/) page.

## Where the loans are

California had the most loans, 35 of 306 (11%).

**Top states by loans, Oct 2023 to Jun 2026**

| State | Loans | Share of loans |
| --- | --- | --- |
| [California](https://www.sbaexpress.loans/industries/hardware-retailers/california/) | 35 | 11.4% |
| [Ohio](https://www.sbaexpress.loans/ohio-small-business-loans/) | 28 | 9.2% |
| [Texas](https://www.sbaexpress.loans/texas-small-business-loans/) | 28 | 9.2% |
| [Michigan](https://www.sbaexpress.loans/michigan-small-business-loans/) | 18 | 5.9% |
| [Wisconsin](https://www.sbaexpress.loans/wisconsin-small-business-loans/) | 18 | 5.9% |

Location is the state of the business, not of the lender.

Compare every state on [SBA loans by state](https://www.sbaexpress.loans/sba-loans-by-state/).

## How often these loans went bad

0% of 72 seasoned loans were charged off, below the 3.6% rate for all SBA 7(a) loans.

72: Seasoned loans

0.0%: Charged off, by loans

0.0%: Charged off, by dollars

3.6%: All industries, by loans

None of the 72 loans approved October 1, 2019 to September 30, 2022 were charged off by June 30, 2026. By dollars, 0% of the approved amount was charged off.

How we measure this

A seasoned loan is one approved October 1, 2019 to September 30, 2022. Newer loans have not had time to go bad, so they are left out. Charged off means the lender wrote the loan off as a loss, shown as status CHGOFF in SBA's file on June 30, 2026. The rate is charged-off loans divided by seasoned loans. This describes what happened to approved loans. It says nothing about whether an application will be approved.

## SBA size standard

NAICS 444140 has its own size standard.

For NAICS 444140, SBA's size standard is $16.5 million in average annual receipts. A business at or under the standard is small for SBA's purposes. To qualify, a business must fit the size standard for the applicant's primary industry in 13 CFR 121.201, measured in annual receipts or employees. SBA measures size on the date the application is accepted for SBA processing, or for delegated loans the date the lender approves the loan.

A business over the standard can still qualify under the alternative standard: tangible net worth of $20 million or less and average net income after federal income taxes of $6.5 million or less over the prior two fiscal years. Source: SOP 50 10 8.1: Sec. A, Ch. 1, Para. D.1 (p. 14); Sec. A, Ch. 1, Para. D.2 (p. 14); 13 CFR § 121.301(b)(2).

Check the code before you rely on it

SBA proposed new size standards for 338 industry groups and industries on August 20, 2026; the change is proposed only. Source: 91 FR 53741 (Aug. 20, 2026).

## A payment example

**Payment on a typical loan**

| Item | Example |
| --- | --- |
| Loan amount | $350,000, the median |
| Term | 10 years (120 months), the median |
| Rate | 9.50%, the median at approval |
| Monthly payment | $4,529 |
| Total interest over the term | $193,470 |

The example uses the median loan and the median term. The rate is the median at approval for these businesses. It covers principal and interest only, and it assumes the loan runs the full term. It leaves out fees, including the SBA guaranty fee.

On a variable-rate loan, a 1 percentage point move in Prime changes this payment by about $194 a month. Prime is 7.00% as of Nov 10, 2026. For a payment at today's rate, use the [SBA Express payment calculator](https://www.sbaexpress.loans/sba-express-payment-calculator/).

How to read this

Counts come from SBA's 7(a) loan-level data release, as of June 30, 2026. The file lists loans SBA approved. It does not list declined applications, so it cannot show approval odds. We do not publish any figure built on fewer than 5 loans. Industry is the NAICS code recorded on each loan. This page covers NAICS 444140, Hardware Retailers. Express share counts SBA Express and Export Express loans. Lines of credit are loans the file marks as revolving. The median rate is the initial rate on loans with a rate on file. The spread is that rate minus Prime on the approval date, for variable-rate loans only. [How we build these pages](https://www.sbaexpress.loans/method/).

## Sources

- [SBA 7(a) loan file, June 30, 2026](https://data.sba.gov/dataset/7a-504-foia)
- [SOP 50 10 8.1: App. 19, Para. A (p. 404); Sec. B, Ch. 2, Para. C.2 (Para. C begins p. 127); App. 19, Para. B.3 (Para. B begins p. 408); App. 16, Para. B.2 (Para. B begins p. 388); Sec. B, Ch. 2 (p. 125); Sec. B, Ch. 2, Para. B.1 (p. 126); Sec. A, Ch. 5, Para. A.1 (p. 93); Sec. A, Ch. 1, Para. D.1 (p. 14); Sec. A, Ch. 1, Para. D.2 (p. 14); App. 17, Para. A.2 (p. 390); App. 17, Para. A.1 (p. 390); SBA Procedural Notice 5000-876777; 13 CFR § 120.160(a); 13 CFR § 121.301](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.100](https://www.ecfr.gov/current/title-13/section-120.100)
- [SOP 50 10 8.1: App. 18, Para. A.2 (p. 395); 13 CFR § 120.214(d)(3)](https://www.ecfr.gov/current/title-13/section-120.214)
- [SOP 50 10 8.1: Sec. A, Ch. 1, Para. D.1 (p. 14); 13 CFR § 121.301(b)(2)](https://www.ecfr.gov/current/title-13/section-121.301)
- [91 FR 53741 (Aug. 20, 2026)](https://www.govinfo.gov/content/pkg/FR-2026-08-20/pdf/2026-17042.pdf)
- [13 CFR § 121.201](https://www.ecfr.gov/current/title-13/section-121.201)