Alabama SBA lending, from federal loan records
SBA Lenders Actively Funding Businesses in Alabama
Since FY2020, 193 lenders have funded 2,737 SBA loans worth $2.0B for businesses in Alabama. Borrowers reported 31,978 jobs supported by those loans. Below is who actually writes them, how big they run, and which Alabama businesses get funded.
Most active SBA lenders in Alabama
Ranked by loans funded for Alabama projects since FY2020, not by advertising budget. A lender headquartered elsewhere that funds heavily in Alabama beats a local name that rarely writes SBA loans.
| Lender | Program | AL loans since FY2020 | Since FY2025 | Median loan | Median rate |
|---|---|---|---|---|---|
| The Huntington National Bank | 7(a) | 177 | 58 | $290K | 10% |
| Southern Development Council | 504 (CDC) | 149 | 40 | $597K | n/a |
| Wells Fargo Bank National Association | 7(a) | 135 | 22 | $15K | 10.5% |
| Live Oak Banking Company | 7(a) | 120 | 46 | $878K | 8.75% |
| Newtek Bank, National Association | 7(a) | 112 | 71 | $150K | 11.25% |
| Florida Business Development Corporation | 504 (CDC) | 89 | 26 | $553K | n/a |
| BayFirst National Bank | 7(a) | 82 | 22 | $150K | 12.25% |
| Sabre Finance | 7(a) | 82 | 43 | $147K | 10.5% |
| BankFirst Financial Services | 7(a) | 79 | 3 | $147K | 7.75% |
| Readycap Lending, LLC | 7(a) | 79 | 24 | $115K | 10.25% |
| Birmingham Citywide Local Development Company | 504 (CDC) | 79 | 17 | $702K | n/a |
| Florida First Capital Finance Corporation, Inc. | 504 (CDC) | 78 | 6 | $673K | n/a |
| United Midwest Savings Bank National Association | 7(a) | 77 | 18 | $150K | 8.5% |
| Northeast Bank | 7(a) | 74 | 45 | $67K | 10.75% |
| PNC Bank, National Association | 7(a) | 70 | 9 | $35K | 9.75% |
| SouthState Bank, National Association | 7(a) | 57 | 8 | $478K | 8.75% |
| Pinnacle Bank | 7(a) | 57 | 13 | $652K | 8% |
| Regions Bank | 7(a) | 50 | 17 | $318K | 6.75% |
| United Community Bank | 7(a) | 39 | 4 | $490K | 7.5% |
| First Financial Bank | 7(a) | 38 | 7 | $334K | 6.78% |
| Celtic Bank Corporation | 7(a) | 36 | 17 | $150K | 10.25% |
| Renasant Bank | 7(a) | 35 | 12 | $750K | 8.75% |
| SouthPoint Bank | 7(a) | 33 | 7 | $395K | 8.25% |
| Hancock Whitney Bank | 7(a) | 30 | 8 | $281K | 10% |
| ServisFirst Bank | 7(a) | 27 | 8 | $600K | 6.75% |
504 loans are written by Certified Development Companies alongside a bank first mortgage. The 504 file reports no interest rate, so CDC rows show none.
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Start your funding profile →How big Alabama SBA loans run
Share of Alabama 7(a) loans by approval size, next to the national split. If your ask sits in a common band, it is the kind of loan lenders here fund every week.
| 7(a) loan size | AL | US |
|---|---|---|
| Under $150K | 29.3% | 40.4% |
| $150K to $500K | 36.5% | 31.9% |
| $500K to $1M | 14.7% | 12.9% |
| $1M and up | 19.4% | 14.9% |
Who gets funded in Alabama
Business age on Alabama 7(a) loans. 16% funded a change of ownership, against 11.1% nationally. Buying a business? See the acquisition lender shortlist. Starting one? See startup-friendly lenders.
| Business stage | AL | US |
|---|---|---|
| Established, more than 2 years | 41.2% | 55.2% |
| New, 2 years or less | 18.6% | 16.9% |
| Startup, loan opens the business | 24.2% | 16.8% |
| Change of ownership (buying a business) | 16% | 11.1% |
Industries Alabama SBA lenders fund most
Share of all Alabama SBA loans by industry, and how that compares with the national mix.
| Industry | AL loans | Share | Compared with US |
|---|---|---|---|
| Restaurants and hotels | 467 | 17.1% | 1.3x the national share |
| Retail | 341 | 12.5% | in line with national |
| Personal and repair services | 257 | 9.4% | in line with national |
| Healthcare | 253 | 9.2% | in line with national |
| Construction | 234 | 8.5% | 0.7x the national share |
| Professional services | 199 | 7.3% | 0.8x the national share |
| Business support services | 161 | 5.9% | in line with national |
| Manufacturing | 153 | 5.6% | 0.8x the national share |
The most common specific business types funded in Alabama: limited-service restaurants (133), full-service restaurants (130), hotels (except casino hotels) and motels (119), broilers and other meat type chicken production (65), fitness and recreational sports centers (63), insurance agencies and brokerages (54).
Where in Alabama the loans go
| County | SBA loans since FY2020 | Share of state |
|---|---|---|
| Jefferson | 565 | 21% |
| Madison | 279 | 10% |
| Mobile | 253 | 9% |
| Baldwin | 217 | 8% |
| Shelby | 209 | 8% |
| Montgomery | 125 | 5% |
| Lee | 110 | 4% |
| Tuscaloosa | 88 | 3% |
7(a) or 504 in Alabama
15% of Alabama SBA loans are 504 loans, against 12% nationally. A 504 loan funds owner-occupied real estate or major equipment, with a median of $648K here. A 7(a) loan covers almost anything else, including working capital and buying a business. The busiest 504 lenders in Alabama:
- Southern Development Council: 149 504 loans, median $597K
- Florida Business Development Corporation: 89 504 loans, median $553K
- Birmingham Citywide Local Development Company: 79 504 loans, median $702K
- Florida First Capital Finance Corporation, Inc.: 75 504 loans, median $704K
Alabama SBA lending by year
| Fiscal year | 7(a) loans | 504 loans | Dollars |
|---|---|---|---|
| FY2020 | 245 | 54 | $211M |
| FY2021 | 302 | 81 | $323M |
| FY2022 | 267 | 63 | $224M |
| FY2023 | 369 | 53 | $303M |
| FY2024 | 430 | 60 | $314M |
| FY2025 | 476 | 56 | $365M |
| FY2026 (through June 30, 2026) | 248 | 33 | $216M |
The SBA fiscal year runs October through September.
Common questions
Who is the most active SBA lender in Alabama?
By funded loans since FY2020, The Huntington National Bank leads Alabama with 177 loans.
How big is a typical SBA loan in Alabama?
The median 7(a) loan in Alabama is $284K, and the middle half runs from $106K to $750K. The median 504 loan is $648K. Nationally the 7(a) median is $200K.
What interest rate do Alabama SBA borrowers get?
The median starting rate on Alabama 7(a) loans since FY2020 is 9.49%, against 9.25% nationally. 86% of those loans carry a variable rate, which moves with the prime rate.
Can a startup get an SBA loan in Alabama?
Yes. 43% of Alabama 7(a) loans with a reported business age went to startups or businesses two years old or younger, against 34% nationally. Lenders still expect a solid plan, owner equity and usually collateral.
Sources and limits. Derived from U.S. Small Business Administration 7(a) and 504 FOIA loan-level records, FY2020 through June 30, 2026, for projects located in Alabama. Cancelled approvals are excluded. Jobs supported are as reported by borrowers. Figures describe past lending activity only and are not offers, quotes, or qualification decisions. Big Brain Funding is not a lender and is not affiliated with any lender listed.