SBA loans for tobacco and smoking supply shops
Short answer
SBA approved 138 loans to tobacco and smoking supply shops since October 2023, with a median of $150,000. Half of the loans were between $50,000 and $390,000. Source: SBA 7(a) loan file, June 30, 2026.
- SBA loans since October 2023
- 138
- Median loan
- $150,000
- Median rate at approval
- 10.50%
- Through SBA Express
- 33%
These figures come from SBA's public loan file for the 7(a) program, which includes SBA Express. They cover NAICS 459991, Tobacco, Electronic Cigarette, and Other Smoking Supplies 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 453991.
NAICS codes were revised in 2022, and lenders moved these businesses to code 459991 during FY2022 and FY2023. Most of the rise in loans under 459991 in those years is that change of code. The older loans are on NAICS 453991, Tobacco stores.
| Fiscal year | NAICS 453991 (2017) | NAICS 459991 (2022) | Codes together |
|---|---|---|---|
| FY2020 | 45 | 0 | 45 |
| FY2021 | 35 | 0 | 35 |
| FY2022 | 24 | 20 | 44 |
| FY2023 | 0 | 42 | 42 |
| FY2024 | Fewer than 5 | 58 | 59 to 62 |
| FY2025 | 0 | 52 | 52 |
| FY2026 (to June 30) | 0 | 28 | 28 |
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 tobacco and smoking supply shops looks at the business's numbers and these items for the trade:
- Whether the vapor products sold have FDA marketing authorization, since selling unauthorized products can bring seizures and fines
- CBD and hemp-derived products, whose legality the lender must document, and any devices sold for marijuana use
- State and local flavor restrictions and retailer license limits, since a new ban can remove a leading product line
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:
- Authorized vapor devices, pods and e-liquids ordered from licensed distributors
- Display cases, age-verification equipment and security for a compliant retail floor
- A cigar lounge or smoking room with ventilation, where local smoke-free laws allow one
The cash cycle
Distributors want payment at or before delivery for regulated products, so the shop funds its stock from cash on hand. New restrictions or product removals can strand inventory that has already been paid for.
Collateral
Cases, fixtures and authorized stock are the collateral, and lenders count vapor inventory conservatively because regulation can remove products from sale.
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
Half of these loans were between $50,000 and $390,000.
Bars show each band's share of the loans. Fewer than 5 marks a band whose count we do not publish.
The median loan was $150,000, close to the $150,300 median for all SBA 7(a) loans. Half of the loans fell between $50,000 and $390,000. The most common size band was $50,000 or less.
By business age, 49% had operated for more than 2 years and 20% for 2 years or less. 19% were startups opening with the loan, and 12% paid for a change of ownership.
What they paid
The median loan priced at Prime plus 2.75 percentage points, the same as the median for all SBA 7(a) loans.
The median rate at approval was 10.50% 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 $50,001 to $250,000, the cap is Prime plus 6.0 percentage points. The typical loan here, $150,000, 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
33% of the loans went through SBA Express and 26% were lines of credit. The median term was 10 years.
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. An SBA Express line of credit can run 10 years, including any term-out period. 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); App. 17, Para. B.3.
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
M&T Bank made the most loans, 15 of 138 (11%).
| Lender | Type | Loans | Share of loans |
|---|---|---|---|
| M&T Bank | Bank | 15 | 10.9% |
| U.S. Bank | Bank | 8 | 5.8% |
| Financial Resources | Credit union | 7 | 5.1% |
| Readycap Lending, LLC | Non-bank lender | 7 | 5.1% |
| KeyBank | Bank | 6 | 4.3% |
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 page.
Where the loans are
Pennsylvania had the most loans, 16 of 138 (12%).
| State | Loans | Share of loans |
|---|---|---|
| Pennsylvania | 16 | 11.6% |
| Washington | 16 | 11.6% |
| California | 13 | 9.4% |
| Ohio | 10 | 7.2% |
| Florida | 9 | 6.5% |
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
Only 20 loans to these businesses are old enough to judge, too few for a charge-off rate that means anything.
The seasoned group is loans approved October 1, 2019 to September 30, 2022. A rate built on fewer than 30 loans changes a lot with one loan, so we publish none. For comparison, 3.6% of the 124,132 seasoned loans in all industries were charged offThe lender wrote the loan off as a loss because it was not being repaid. .
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 459991 has its own size standard.
For NAICS 459991, SBA's size standard is $11.5 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
| Item | Example |
|---|---|
| Loan amount | $150,000, the median |
| Term | 10 years (120 months), the median |
| Rate | 10.50%, the median at approval |
| Monthly payment | $2,024 |
| Total interest over the term | $92,883 |
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 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 $85 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 459991, Tobacco, Electronic Cigarette, and Other Smoking Supplies 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.
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); App. 17, Para. B.3 (Para. B begins p. 391); 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
- 13 CFR § 120.100
- SOP 50 10 8.1: App. 18, Para. A.2 (p. 395); 13 CFR § 120.214(d)(2)
- SOP 50 10 8.1: Sec. A, Ch. 1, Para. D.1 (p. 14); 13 CFR § 121.301(b)(2)
- 91 FR 53741 (Aug. 20, 2026)
- 13 CFR § 121.201
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Cite this page: SBA loans for tobacco and smoking supply shops. SBA Express Loans, Janover Capital LLC (data as of June 30, 2026). https://www.sbaexpress.loans/industries/tobacco-electronic-cigarette-other-smoking-supplies-retailers/
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