SBA loans for direct selling businesses
Short answer
Code 454390 is not in the 2022 NAICS edition, which files direct selling businesses under retail codes for what they sell. Under code 454390, SBA approved 369 loans from October 2019 to June 2026, with a median of $200,000. Source: SBA 7(a) loan file, June 30, 2026.
- SBA loans, Oct 2019 to Jun 2026
- 369
- Median loan
- $200,000
- Median spread over Prime
- Prime + 2.5
- Loans since Oct 2023
- 15
These figures come from SBA's public loan file for the 7(a) program, which includes SBA Express. They cover NAICS 454390, Other Direct Selling Establishments. The loans were approved from October 1, 2019 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
Code 454390 is not in the 2022 NAICS edition.
The 2022 NAICS edition has no code for direct selling businesses as a group. Lenders file each business under the retail code for what it sells, so loans under code 454390 are not a count of lending to these businesses, and their number by year says nothing about the trade.
What lenders check
Each lender sets its own checklist. SBA sets the basic eligibility tests.
A lender reviewing a loan to direct selling businesses looks at the business's numbers and these items for the trade:
- Whether the business sells goods on its own account or runs a multilevel or pyramid plan, which SBA treats as ineligible
- Route or customer records showing repeat orders, such as home or office delivery stops
- Sales tax permits and local solicitation or vendor permits for each place the business sells
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 delivery van or truck with shelving and refrigeration for the route
- Starting stock and sample kits for a direct selling operation
- Tents, displays and permits for selling at markets, fairs and events
The cash cycle
Goods are bought on supplier terms or for cash and sold for cash or card at the door, the market or the delivery stop. Route customers who reorder on a schedule give steadier cash than one-time sales.
Collateral
Collateral is the route truck, any dispensers or tents, and stock on hand, so a lender usually needs the owner's other assets as well.
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 guaranteeYour promise to repay the loan yourself if the business cannot. . 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
76% of these loans were $500,000 or less, the range where SBA Express is available.
Bars show each band's share of the loans.
The median loan was $200,000, close to the $200,000 median for all SBA 7(a) loans. Half of the loans fell between $100,000 and $500,000. The most common size band was $50,001 to $150,000.
By business age, 72% had operated for more than 2 years and 13% for 2 years or less. 4.1% were startups opening with the loan, and 9.2% paid for a change of ownership.
What they paid
SBA approved 15 loans to these businesses since October 2023. Recent loans that few give no rate of their own, so these figures cover October 1, 2019 to June 30, 2026.
The median spread across 369 approvals was Prime plus 2.5 percentage points, against Prime plus 2.6 percentage points for all industries. A spread is measured against Prime on the approval date, which makes loans from different years comparable. It is not today's rate.
SBA's maximum rate today
SBA caps a variable rate by loan size. For a loan of $50,001 to $250,000, the cap is Prime plus 6.0 percentage points. The typical loan here, $200,000, is in that range. With Prime at 7.00% as of Nov 10, 2026, the maximum is 13.00% today. Source: SOP 50 10 8.1: App. 18, Para. A.2 (p. 395); 13 CFR § 120.214(d)(2).
How the money comes
41% of the loans went through SBA Express and 25% were lines of credit. The median term was 10 years.
Across all industries, 38.5% of loans went through SBA Express and 27% 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
BayFirst National Bank made the most loans, 26 of 369 (7.0%).
| Lender | Type | Loans | Share of loans |
|---|---|---|---|
| BayFirst National Bank | Bank | 26 | 7.0% |
| The Huntington National Bank | Bank | 23 | 6.2% |
| M&T Bank | Bank | 17 | 4.6% |
| Five Star Bank | Bank | 12 | 3.3% |
| TD Bank | Bank | 11 | 3.0% |
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 page.
Where the loans are
California had the most loans, 43 of 369 (12%).
| State | Loans | Share of loans |
|---|---|---|
| California | 43 | 11.7% |
| Texas | 31 | 8.4% |
| Florida | 27 | 7.3% |
| New York | 22 | 6.0% |
| North Carolina | 21 | 5.7% |
Location is the state of the business, not of the lender.
Compare every state on SBA loans by state.
How often these loans went bad
4.9% of 324 seasoned loans were charged off, above the 3.6% rate for all SBA 7(a) loans.
16 of the 324 loans approved October 1, 2019 to September 30, 2022 were charged offThe lender wrote the loan off as a loss because it was not being repaid. by June 30, 2026. By dollars, 1.6% 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.
A payment example
| Item | Example |
|---|---|
| Loan amount | $200,000, the median |
| Term | 10 years (120 months), the median |
| Rate | 10.25%, the national median at approval |
| Monthly payment | $2,671 |
| Total interest over the term | $120,494 |
The example uses the median loan and the median term. These businesses have too few recent loans for their own median rate, so it uses the national median at approval, 10.25%. It covers principal and interest only, and it assumes the loan runs the full term. It leaves out fees, including the SBA guaranty feeA fee SBA charges on the guaranteed part of a loan. The lender pays it and may pass it to you. Full definition.
On a variable-rate loan, a 1 percentage point move in Prime changes this payment by about $113 a month. Prime is 7.00% as of Nov 10, 2026. For a payment at today's rate, use the 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 454390, Other Direct Selling Establishments. 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.
Sources
- SBA 7(a) loan file, June 30, 2026
- 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); 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 § 120.100
- SOP 50 10 8.1: App. 18, Para. A.2 (p. 395); 13 CFR § 120.214(d)(2)
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Cite this page: SBA loans for direct selling businesses. SBA Express Loans, Janover Capital LLC (data as of June 30, 2026). https://www.sbaexpress.loans/industries/other-direct-selling-establishments/
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