SBA Loan Default Rates by Industry: Which Businesses Fail Most?

Table of Contents

Analysis of 357,866 SBA 7(a) loans from 2020-2025 using official FOIA data

502Industries Analyzed
357,866Loans Studied
1.4%Overall Default Rate

Before taking on an SBA loan, smart borrowers want to know: what are the odds this goes wrong? We analyzed every SBA 7(a) loan from 2020 to 2025 — all 357,866 of them — to find which industries have the highest and lowest default rates.

Highest Default Rate Industries

Warning zone: Women’s clothing wholesale (9.4%), health supplement stores (7.2%), and women’s clothing retail (6.5%) lead the chargeoff charts. These industries face intense online competition and thin margins.

Lowest Default Rate Industries

Safe bets: Fuel dealers, boat dealers, securities brokerages, and ambulatory surgical centers all report 0% chargeoff rates. Healthcare, professional services, and asset-backed businesses consistently outperform.

Full SBA Default Rate Rankings by Industry

Every industry with 50+ SBA loans (2020-2025), ranked from highest to lowest default rate:

#IndustryDefault RateTotal LoansDefaultsChargeoff $
1Women’s, Children’s, and Infants’ Clothing and Accessories Merchant Wh9.4%17116$1.4M
2Food (Health) Supplement Stores7.2%13910$444K
3Women’s Clothing Stores6.5%29419$2.2M
4All Other Miscellaneous General Purpose Machinery Manufacturing6.4%785$573K
5Toilet Preparation Manufacturing6.3%795$219K
6Electrical and Electronic Appliance, Television, and Radio Set Merchan5.9%20312$861K
7Electronic Shopping5.9%22013$1.0M
8Office Supplies and Stationery5.6%714$1.1M
9General Freight Trucking, Long-Distance, Less Than Truckload5.6%44525$579K
10All Other Transit and Ground Passenger Transportation5.6%28616$1.5M
11Cosmetics, Beauty Supplies, and Perfume Stores5.3%31917$929K
12Soft Drink Manufacturing5.3%764$372K
13Mortgage and Nonmortgage Loan Brokers5.1%1779$1.5M
14Electronic Shopping and Mail-Order Houses4.9%1,21259$11.4M
15All Other Travel Arrangement and Reservation Services4.7%864$108K
16Art Dealers4.5%663$61K
17New Housing Operative Builders4.5%663$462K
18Metal Window and Door Manufacturing4.5%884$196K
19Appliance Repair and Maintenance4.5%33715$2.0M
20Family Clothing Stores4.4%1145$1.0M
21Drugs and Druggists’ Sundries Merchant Wholesalers4.3%23010$3.9M
22Children’s and Infants’ Clothing Stores4.2%713$204K
23All Other Miscellaneous Ambulatory Health Care Services4.2%2159$1.1M
24Solar Electric Power Generation4.1%1225$1.8M
25Shoe Stores3.9%1024$494K
26All Other Health and Personal Care Stores3.9%1807$899K
27Automotive Transmission Repair3.8%522$206K
28Passenger Car Rental3.8%2108$4.0M
29Horse and Other Equine Production3.8%1054$52K
30Electronics Stores3.8%1596$313K
31Used Household and Office Goods Moving3.7%53920$2.8M
32Jewelry Stores3.7%2439$262K
33Offices of Real Estate Appraisers3.7%1355$3.2M
34Marketing Consulting Services3.7%1,82867$5.7M
35Other Direct Selling Establishments3.6%41915$2.5M
36Audio and Video Equipment Manufacturing3.6%1124$409K
37Continuing Care Retirement Communities3.6%562$597K
38General Freight Trucking, Local3.5%5,639200$21.5M
39Furniture Stores3.5%28310$713K
40Paint and Wallpaper Stores3.5%853$86K
41All Other Miscellaneous Food Manufacturing3.5%2589$2.2M
42Clothing Accessories Stores3.4%1174$78K
43General Freight Trucking, Long Distance, Truckload3.4%6,764231$18.7M
44Other Vegetable (except Potato) and Melon Farming3.4%592$29K
45Special Needs Transportation3.3%33011$848K
46All Other Miscellaneous Store Retailers (except Tobacco Stores)3.3%66722$1.5M
47Employee Leasing Services3.3%913$1.6M
48Tobacco and Tobacco Product Merchant Wholesalers3.3%923$194K
49Other Snack Food Manufacturing3.2%1254$546K
50Gift, Novelty, and Souvenir Stores3.2%2197$629K
51Limousine Service3.2%34611$771K
52Fish and Seafood Merchant Wholesalers3.1%1916$148K
53Automobile and Other Motor Vehicle Merchant Wholesalers3.1%2568$1.6M
54Sound Recording Studios3.1%1284$382K
55Other Management Consulting Services3.1%1,11334$2.6M
56Agents and Managers for Artists, Athletes, Entertainers, and Other Pub3.0%1645$685K
57Other Construction Material Merchant Wholesalers2.9%2056$312K
58Other Electronic Parts and Equipment Merchant Wholesalers2.9%3089$2.6M
59All Other Insurance Related Activities2.9%1374$341K
60Support Activities for Printing2.9%692$151K
61All Other Support Activities for Transportation2.9%1735$512K
62Drywall and Insulation Contractors2.9%1,04630$5.2M
63Other Waste Collection2.9%48914$1.1M
64Musical Groups and Artists2.8%1063$90K
65Couriers2.8%1,10031$7.4M
66Travel Agencies2.8%2146$1.5M
67Used Car Dealers2.8%1,35638$5.1M
68Marketing Research and Public Opinion Polling2.8%1444$473K
69Pet and Pet Supplies Stores2.8%3259$1.1M
70Packaging and Labeling Services2.8%1815$620K
71Boat Building2.7%732$378K
72Other Clothing Stores2.7%2958$723K
73Other Miscellaneous Durable Goods Merchant Wholesalers2.7%1,32836$8.9M
74Computer Training2.7%742$324K
75Facilities Support Services2.7%1494$1.0M
76Hobby, Toy, and Game Stores2.7%1494$354K
77Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesal2.6%64217$3.8M
78Parking Lots and Garages2.6%762$154K
79Professional and Management Development Training2.6%3439$409K
80Framing Contractors2.6%2677$2.8M
81Furniture Merchant Wholesalers2.6%2316$556K
82Administrative Management and General Management Consulting Services2.6%2,54565$3.6M
83Building Inspection Services2.5%2767$653K
84Wood Window and Door Manufacturing2.5%1193$945K
85Other Specialized Design Services2.5%39710$588K
86Specialized Freight (except Used Goods) Trucking, Local2.5%1,23231$1.7M
87Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers2.5%1594$255K
88Nursery and Garden Centers2.5%1995$493K
89Cut and Sew Apparel Contractors2.5%802$67K
90Painting and Wall Covering Contractors2.5%1,95348$3.6M
91Taxi Service2.4%1654$84K
92School and Employee Bus Transportation2.4%1243$71K
93Remediation Services2.4%1,00824$3.5M
94Residential Remodelers2.4%7,351175$15.1M
95Local Messengers and Local Delivery2.4%42410$2.0M
96Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasi2.4%1704$535K
97Other Spectator Sports2.3%862$324K
98Mobile Food Services2.3%1,34931$1.1M
99Other Building Material Dealers2.3%3498$1.1M
100Optical Goods Stores2.3%882$709K
101Commercial Photography2.3%1774$161K
102Amusement and Theme Parks2.3%1333$1.1M
103Janitorial Services2.2%2,94566$8.1M
104Residential Property Managers2.2%1,16326$1.9M
105Flooring Contractors2.2%1,25728$2.6M
106Motorcycle, ATV, and All Other Motor Vehicle Dealers2.2%1353$1.3M
107Convention and Trade Show Organizers2.2%2265$1.8M
108Employment Placement Agencies2.2%91420$7.4M
109Brick, Stone, and Related Construction Material Merchant Wholesalers2.2%1834$188K
110Specialized Freight (except Used Goods) Trucking, Long-Distance2.2%59813$451K
111Window Treatment Stores2.1%1403$356K
112All Other Home Furnishings Stores2.1%1884$686K
113Soap and Other Detergent Manufacturing2.1%952$340K
114Caterers2.1%1,09623$1.4M
115All Other Business Support Services2.1%2866$1.2M
116Independent Artists, Writers, and Performers2.1%62613$477K
117Finish Carpentry Contractors2.1%1,21025$1.8M
118Barber Shops2.1%87718$1.2M
119Other Activities Related to Real Estate2.0%92919$1.5M
120All Other Legal Services2.0%2455$379K
121Wholesale Trade Agents and Brokers2.0%54511$5.7M
122Footwear Merchant Wholesalers2.0%501$9K
123General Line Grocery Merchant Wholesalers2.0%4539$1.8M
124Motor Vehicle Parts (Used) Merchant Wholesalers2.0%1022$320K
125Computer and Office Machine Repair and Maintenance2.0%511$27K
126Fruit and Vegetable Canning2.0%511$81K
127All Other Specialty Food Stores2.0%4098$942K
128Packaged Frozen Food Merchant Wholesalers1.9%1032$249K
129Advertising Agencies1.9%1,03720$2.8M
130Confectionery Manufacturing from Purchased Chocolate1.9%521$26K
131Offices of Real Estate Agents and Brokers1.9%1,88436$3.6M
132Automotive Glass Replacement Shops1.9%3677$757K
133Other Professional Equipment and Supplies Merchant Wholesalers1.9%1062$282K
134Motion Picture and Video Production1.9%69113$1.3M
135Medicinal and Botanical Manufacturing1.9%1072$451K
136Financial Transactions Processing, Reserve, and Clearinghouse Activiti1.9%1072$237K
137Other Individual and Family Services1.9%59011$1.4M
138New Single-Family Housing Construction (except Operative Builders)1.8%2,28042$3.7M
139Florists1.8%2184$210K
140Other Building Equipment Contractors1.8%60311$1.1M
141Vending Machine Operators1.8%2765$559K
142Cosmetology and Barber Schools1.8%1663$342K
143Business Associations1.8%561$65K
144Other Miscellaneous Nondurable Goods Merchant Wholesalers1.8%95417$1.7M
145Dental Laboratories1.8%2254$1.9M
146Pharmacies and Drug Stores1.8%73713$3.5M
147Sporting Goods Stores1.8%5139$702K
148Other Support Activities for Road Transportation1.8%1713$45K
149Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesaler1.7%3446$502K
150All Other Miscellaneous Schools and Instruction1.7%63211$1.2M
151All Other Support Services1.7%3506$851K
152Apparel Accessories and Other Apparel Manufacturing1.7%3566$773K
153Medical Laboratories1.7%2985$2.3M
154Welding and Soldering Equipment Manufacturing1.7%1202$188K
155Sports Teams and Clubs1.7%1212$18K
156Home Furnishing Merchant Wholesalers1.6%2434$240K
157Dairy Product (except Dried or Canned) Merchant Wholesalers1.6%611$14K
158Hardware Manufacturing1.6%611$226K
159All Other Animal Production1.6%611$46K
160Other Business Service Centers (including Copy Shops)1.6%1843$501K
161Poured Concrete Foundation and Structure Contractors1.6%1,35022$5.4M
162Other Grocery and Related Products Merchant Wholesalers1.6%80013$1.5M
163Floor Covering Stores1.6%1853$454K
164Water Supply and Irrigation Systems1.6%2474$427K
165All Other Information Services1.6%621$10K
166Other Automotive Mechanical and Electrical Repair and Maintenance1.6%1242$411K
167Asphalt Paving Mixture and Block Manufacturing1.6%621$276K
168Translation and Interpretation Services1.6%1242$149K
169Plastics Material and Resin Manufacturing1.6%621$1.1M
170Packing and Crating1.6%621$329K
171Glass and Glazing Contractors1.6%62210$807K
172Automotive Parts and Accessories Stores1.6%3746$3.2M
173Sewing, Needlework, and Piece Goods Stores1.6%631$16K
174Teleproduction and Other Postproduction Services1.6%631$94K
175Linen Supply1.6%631$160K
176Confectionery and Nut Stores1.6%1903$146K
177Advertising Material Distribution Services1.6%641$39K
178Beauty Salons1.5%5,03378$4.6M
179Other Electronic and Precision Equipment Repair and Maintenance1.5%651$100K
180Temporary Help Services1.5%2604$52K
181Motorcycle, Bicycle, and Parts Manufacturing1.5%651$48K
182Other Technical and Trade Schools1.5%2624$785K
183Dog and Cat Food Manufacturing1.5%661$73K
184Stationery and Office Supplies Merchant Wholesalers1.5%661$119K
185Educational Support Services1.5%73111$958K
186Other Foundation, Structure, and Building Exterior Contractors1.5%6009$641K
187General Rental Centers1.5%2003$177K
188Other Aircraft Parts and Auxiliary Equipment Manufacturing1.5%671$415K
189Reupholstery and Furniture Repair1.5%1342$148K
190Document Preparation Services1.5%671$37K
191Outpatient Mental Health and Substance Abuse Centers1.5%4707$453K
192Promoters of Performing Arts, Sports, and Similar Events without Facil1.5%2704$397K
193All Other Personal Services1.5%2,78141$5.2M
194Outdoor Power Equipment Stores1.5%681$48K
195Book Stores1.5%681$57K
196Surgical and Medical Instrument Manufacturing1.5%1372$158K
197Home Health Care Services1.5%3,15646$8.0M
198Motor Vehicle Towing1.5%75711$548K
199Photography Studios, Portrait1.4%4837$726K
200Other Electronic Component Manufacturing1.4%691$20K
201Blind and Shade Manufacturing1.4%691$42K
202Investigation Services1.4%1382$1.9M
203Tax Preparation Services1.4%1,25718$3.1M
204Computer Systems Design Services1.4%1,34019$2.4M
205Nursery and Tree Production1.4%1442$352K
206Ship Building and Repairing1.4%721$7K
207Fitness and Recreational Sports Centers1.4%6,77094$17.6M
208Sporting and Athletic Goods Manufacturing1.4%2173$1.8M
209Cafeterias, Grill Buffets, and Buffets1.4%1452$63K
210Other Services Related to Advertising1.4%2944$452K
211Toy and Hobby Goods and Supplies Merchant Wholesalers1.4%2954$780K
212Other Computer Related Services1.4%1,48120$9.4M
213Amusement Arcades1.3%3715$897K
214Convenience Stores1.3%74310$408K
215Meat and Meat Product Merchant Wholesalers1.3%2243$185K
216Supermarkets and Other Grocery (except Convenience) Stores1.3%2,32331$6.1M
217Plumbing, Heating, and Air-Conditioning Contractors1.3%6,12881$13.7M
218Freight Transportation Arrangement1.3%83511$496K
219Sporting and Recreational Goods and Supplies Merchant Wholesalers1.3%5387$422K
220Wood Kitchen Cabinet and Countertop Manufacturing1.3%5397$2.4M
221Small Arms Manufacturing1.3%771$105K
222Limited-Service Restaurants1.3%12,020155$31.2M
223Exterminating and Pest Control Services1.3%77810$801K
224Carpet and Upholstery Cleaning Services1.3%4676$1.1M
225Commercial and Institutional Building Construction1.3%2,25929$3.5M
226Software Publishers1.3%1562$37K
227Masonry Contractors1.3%6248$2.3M
228Recreational and Vacation Camps (except Campgrounds)1.3%781$281K
229Siding Contractors1.3%3124$251K
230Doll, Toy, and Game Manufacturing1.3%781$25K
231Electrical Contractors1.3%4,13753$8.8M
232Media Representatives1.3%791$345K
233Graphic Design Services1.3%4756$932K
234Logging1.3%3174$160K
235Human Resources and Executive Search Consulting Services1.3%2383$175K
236All Other Automotive Repair and Maintenance1.3%79510$1.2M
237Industrial Supplies Merchant Wholesalers1.3%3194$796K
238Roofing, Siding, and Insulation Material Merchant Wholesalers1.2%801$680K
239Cookie and Cracker Manufacturing1.2%801$25K
240Fabricated Structural Metal Manufacturing1.2%3224$263K
241Commercial Screen Printing1.2%5647$631K
242Other Scientific and Technical Consulting Services1.2%88811$704K
243Miscellaneous Financial Investment Activities1.2%1632$244K
244Landscaping Services1.2%5,96273$10.0M
245Computer and Computer Peripheral Equipment and Software Merchant Whole1.2%1642$90K
246Other Nonhazardous Waste Treatment and Disposal1.2%821$10K
247Executive Search Services1.2%821$25K
248Other Personal Care Services1.2%3,61744$4.7M
249Office Administrative Services1.2%2473$334K
250Full-Service Restaurants1.2%16,469200$28.6M
251Security Guards and Patrol Services1.2%4125$351K
252Nail Salons1.2%1,49018$1.4M
253Offices of Podiatrists1.2%2493$146K
254Commercial and Industrial Machinery and Equipment (except Automotive a1.2%1,08713$1.6M
255Confectionery Merchant Wholesalers1.2%841$100K
256Industrial Design Services1.2%841$30K
257Commercial Bakeries1.2%3374$455K
258Custom Computer Programming Services1.2%1,77721$2.5M
259Support Activities for Animal Production1.2%2543$108K
260Musical Instrument and Supplies Stores1.2%851$159K
261Display Advertising1.2%851$40K
262Diagnostic Imaging Centers1.2%1712$217K
263Computer Facilities Management Services1.2%1722$156K
264Other Millwork (including Flooring)1.2%861$4.6M
265Beef Cattle Ranching and Farming1.2%2593$51K
266Roofing Contractors1.2%1,73520$1.3M
267New Multifamily Housing Construction (except Operative Builders)1.1%1772$254K
268Offices of Lawyers1.1%3,12135$3.7M
269All Other Professional, Scientific, and Technical Services1.1%2,98133$6.5M
270Tile and Terrazzo Contractors1.1%3624$725K
271Interior Design Services1.1%99811$805K
272Hardware Merchant Wholesalers1.1%1832$532K
273Power and Communication Line and Related Structures Construction1.1%3684$79K
274Office Equipment Merchant Wholesalers1.1%921$50K
275Fresh Fruit and Vegetable Merchant Wholesalers1.1%1852$274K
276Industrial and Personal Service Paper Merchant Wholesalers1.1%941$78K
277Other Services to Buildings and Dwellings1.1%1,41615$859K
278Insurance Agencies and Brokerages1.1%4,24945$7.8M
279Baked Goods Stores1.1%7588$483K
280Drycleaning and Laundry Services (except Coin-Operated)1.0%8629$1.4M
281Wine and Distilled Alcoholic Beverage Merchant Wholesalers1.0%2883$303K
282Sports and Recreation Instruction1.0%1,54116$1.9M
283All Other Miscellaneous Manufacturing1.0%5816$2.3M
284Architectural Services1.0%7768$233K
285Car Washes1.0%1,67017$1.9M
286Flight Training1.0%991$312K
287Industrial Building Construction1.0%3964$650K
288Food Service Contractors1.0%3984$248K
289New Car Dealers1.0%1992$1.8M
290Offices of Chiropractors1.0%2,99430$5.1M
291Snack and Nonalcoholic Beverage Bars1.0%5,11251$4.8M
292General Automotive Repair1.0%5,41354$6.3M
293All Other Miscellaneous Wood Product Manufacturing1.0%3013$270K
294Automotive Oil Change and Lubrication Shops1.0%4044$232K
295Other Personal and Household Goods Repair and Maintenance1.0%9479$817K
296Security Systems Services (except Locksmiths)1.0%4214$358K
297Fine Arts Schools0.9%6346$446K
298Wineries0.9%3183$373K
299Home Centers0.9%1061$174K
300Services for the Elderly and Persons with Disabilities0.9%9599$1.0M
301Nonresidential Property Managers0.9%2142$178K
302Electroplating, Plating, Polishing, Anodizing, and Coloring0.9%1071$25K
303Coffee and Tea Manufacturing0.9%3233$246K
304Claims Adjusting0.9%1081$203K
305Motor Vehicle Supplies and New Parts Merchant Wholesalers0.9%3393$937K
306Lessors of Residential Buildingsv and Dwellings0.9%1131$74K
307All Other Specialty Trade Contractors0.9%5,85751$8.8M
308Nonupholstered Wood Household Furniture Manufacturing0.9%1151$31K
309Exam Preparation and Tutoring0.9%3483$299K
310Solid Waste Collection0.9%6986$903K
311All Other Telecommunications0.9%1171$385K
312Flower, Nursery Stock, and Florists’ Supplies Merchant Wholesalers0.9%2352$244K
313Automotive Body, Paint, and Interior Repair and Maintenance0.8%1,76715$1.0M
314Elementary and Secondary Schools0.8%3543$93K
315Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant0.8%1191$143K
316Offices of Physicians, Mental Health Specialists0.8%5965$397K
317Investment Advice0.8%4814$720K
318All Other Plastics Product Manufacturing0.8%3623$221K
319Cut Stone and Stone Product Manufacturing0.8%2422$292K
320Fruit and Vegetable Markets0.8%1231$24K
321Surgical Appliance and Supplies Manufacturing0.8%1231$40K
322Drinking Places (Alcoholic Beverages)0.8%2,10717$2.1M
323Tour Operators0.8%1241$202K
324All Other Amusement and Recreation Industries0.8%2,40219$2.2M
325Highway, Street, and Bridge Construction0.8%5204$267K
326Offices of All Other Miscellaneous Health Practitioners0.8%2,48119$1.1M
327All Other Outpatient Care Centers0.8%3943$1.4M
328Marinas0.8%1321$48K
329Distilleries0.8%2642$409K
330Water and Sewer Line and Related Structures Construction0.8%3963$990K
331Meat Processed from Carcasses0.8%1331$15K
332Process, Physical Distribution, and Logistics Consulting Services0.7%4023$198K
333Custom Architectural Woodwork and Millwork Manufacturing0.7%1341$18K
334Soil Preparation, Planting, and Cultivating0.7%1361$15K
335Recyclable Material Merchant Wholesalers0.7%4113$577K
336Pet Care (except Veterinary) Services0.7%2,86520$2.5M
337Other Accounting Services0.7%1,72212$629K
338Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers0.7%2872$1.4M
339Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Whole0.7%1471$54K
340All Other Miscellaneous Electrical Equipment and Component Manufacturi0.7%1471$19K
341Offices of Physicians (except Mental Health Specialists)0.7%3,98627$8.6M
342Coin-Operated Laundries and Drycleaners0.7%1,0407$2.6M
343Site Preparation Contractors0.7%2,08514$1.3M
344Machine Shops0.7%1,0577$8.0M
345Used Merchandise Stores0.6%1581$73K
346Engineering Services0.6%1,60710$701K
347Wood Container and Pallet Manufacturing0.6%1611$6K
348Beer, Wine, and Liquor Stores0.6%1,62410$2.1M
349Scenic and Sightseeing Transportation, Water0.6%1631$24K
350Retail Bakeries0.6%1,1537$663K
351Diet and Weight Reducing Centers0.6%1651$23K
352Ambulance Services0.6%1651$191K
353Recreational Vehicle Dealers0.6%1671$201K
354Construction, Mining, and Forestry Machinery and Equipment Rental and0.6%1671$2K
355Transportation Equipment and Supplies (except Motor Vehicle) Merchant0.6%1681$27K
356Electrical Apparatus and Equipment, Wiring Supplies, and Related Equip0.6%3412$490K
357Industrial Machinery and Equipment Merchant Wholesalers0.6%5173$405K
358Landscape Architectural Services0.6%5183$276K
359All Other Traveler Accommodation0.6%1731$215K
360Public Relations Agencies0.6%1731$18K
361All Other Miscellaneous Fabricated Metal Product Manufacturing0.6%6964$935K
362Offices of Physical, Occupational and Speech Therapists, and Audiologi0.6%1,92811$687K
363Private Mail Centers0.6%8955$323K
364Surveying and Mapping (except Geophysical) Services0.6%1801$63K
365Other Chemical and Allied Products Merchant Wholesalers0.5%1871$79K
366Other Building Finishing Contractors0.5%9575$1.3M
367Dance Companies0.5%1941$116K
368Child Day Care Services0.5%5,08126$2.2M
369Other Residential Care Facilities0.5%2001$99K
370Structural Steel and Precast Concrete Contractors0.5%2021$145K
371Residential Mental Health and Substance Abuse Facilities0.5%2051$31K
372Offices of Certified Public Accountants0.5%2,07210$1.5M
373Sign Manufacturing0.5%6353$114K
374Offices of Mental Health Practitioners (except Physicians)0.5%2,13010$1.2M
375Commercial Gravure Printing0.5%1,0815$1.8M
376Other Commercial and Industrial Machinery and Equipment Rental and Lea0.5%4402$140K
377Golf Courses and Country Clubs0.5%2211$5K
378Sheet Metal Work Manufacturing0.4%2261$9K
379Bed-and-Breakfast Inns0.4%2361$26K
380Other Heavy and Civil Engineering Construction0.4%4752$67K
381Cable Networks0.4%2411$25K
382General Warehousing and Storage0.4%2701$35K
383Testing Laboratories0.4%2821$167K
384All Other Miscellaneous Waste Management Services0.3%2881$3.6M
385Data Processing, Hosting, and Related Services0.3%5912$2.0M
386Lessors of Nonresidential Buildings (except Miniwarehouses)0.3%8963$4.0M
387Gasoline Stations with Convenience Stores0.3%1,7765$1.0M
388Offices of Dentists0.3%4,07011$2.6M
389Hardware Stores0.3%3801$25K
390Breweries0.2%1,2093$414K
391Homes for the Elderly0.2%1,4493$185K
392Veterinary Services0.2%1,6363$137K
393Broilers and Other Meat Type0.1%6731$20K
394Offices of Optometrists0.1%7081$151K
395Hotels (except Casino Hotels) and Motels0.1%5,1915$6.8M
396Lessors of Miniwarehouses and Self-Storage Units0.1%1,0511$119K
397Fuel Dealers0.0%1150$0
398Boat Dealers0.0%1880$0
399Securities Brokerage0.0%520$0
400Freestanding Ambulatory Surgical and Emergency Centers0.0%1660$0
401Portfolio Management0.0%770$0
402Lessors of Other Real Estate Property0.0%2150$0
403Environmental Consulting Services0.0%2910$0
404Household Appliance Stores0.0%780$0
405Other Industrial Machinery Manufacturing0.0%760$0
406Offices of Other Holding Companies0.0%2060$0
407Funeral Homes and Funeral Services0.0%8640$0
408RV (Recreational Vehicle) Parks and Campgrounds0.0%4390$0
409Cemeteries and Crematories0.0%1040$0
410Construction and Mining (except Oil Well) Machinery and Equipment Merc0.0%1230$0
411Pharmaceutical Preparation Manufacturing0.0%970$0
412Other Motor Vehicle Parts Manufacturing0.0%950$0
413Collection Agencies0.0%630$0
414Locksmiths0.0%1550$0
415Consumer Electronics Repair and Maintenance0.0%660$0
416Support Activities for Oil and Gas Operations0.0%3300$0
417Charter Bus Industry0.0%670$0
418Septic Tank and Related Services0.0%3450$0
419Metal Coating, Engraving (except Jewelry and Silverware), and Allied S0.0%1600$0
420Other Farm Product Raw Material Merchant Wholesalers0.0%760$0
421Dairy Cattle and Milk Production0.0%920$0
422Chocolate and Confectionery Manufacturing from Cacao Beans0.0%570$0
423Frozen Specialty Food Manufacturing0.0%750$0
424Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Sta0.0%880$0
425Residential Mental Retardation Facilities0.0%1730$0
426Drilling Oil and Gas Wells0.0%500$0
427Precision Turned Product Manufacturing0.0%1140$0
428Miscellaneous Intermediation0.0%710$0
429Paint and Coating Manufacturing0.0%890$0
430Perishable Prepared Food Manufacturing0.0%1310$0
431Farm Machinery and Equipment Manufacturing0.0%580$0
432Nursing Care Facilities0.0%3570$0
433Television Broadcasting0.0%580$0
434Child and Youth Services0.0%2810$0
435Promoters of Performing Arts, Sports, and Similar Events with Faciliti0.0%3930$0
436All Other Miscellaneous Textile Product Mills0.0%1070$0
437Beer and Ale Merchant Wholesalers0.0%1040$0
438Automobile Driving Schools0.0%1270$0
439Industrial Valve Manufacturing0.0%560$0
440Construction Machinery Manufacturing0.0%550$0
441Other Support Activities for Air Transportation0.0%1410$0
442Other Poultry Production0.0%1350$0
443Ice Cream and Frozen Dessert Manufacturing0.0%1850$0
444Other Animal Food Manufacturing0.0%570$0
445Machine Tool Manufacturing0.0%1100$0
446Metal Service Centers and Other Metal Merchant Wholesalers0.0%1870$0
447Payroll Services0.0%840$0
448Title Abstract and Settlement Offices0.0%1230$0
449Theater Companies and Dinner Theaters0.0%530$0
450All Other Miscellaneous Chemical Product and Preparation Manufacturing0.0%1050$0
451Direct Property and Casualty Insurance Carriers0.0%660$0
452Paint, Varnish, and Supplies Merchant Wholesalers0.0%690$0
453Other Commercial Equipment Merchant Wholesalers0.0%1930$0
454Special Die and Tool, Die Set, Jig, and Fixture Manufacturing0.0%800$0
455Pottery, Ceramics, and Plumbing Fixture Manufacturing0.0%520$0
456Chicken Egg Production0.0%2330$0
457Sawmills0.0%940$0
458Tire Dealers0.0%1830$0
459Bowling Centers0.0%2510$0
460Vocational Rehabilitation Services0.0%1050$0
461Farm Supplies Merchant Wholesalers0.0%1700$0
462Air-Conditioning and Warm Air Heating Equipment and Commercial and Ind0.0%750$0
463Meat Markets0.0%1970$0
464Other Warehousing and Storage0.0%790$0
465Service Establishment Equipment and Supplies Merchant Wholesalers0.0%1920$0
466Prefabricated Metal Building and Component Manufacturing0.0%770$0
467Iron and Steel Pipe and Tube Manufacturing from Purchased Steel0.0%830$0
468Plastics Materials and Basic Forms and Shapes Merchant Wholesalers0.0%560$0
469Industrial Mold Manufacturing0.0%700$0
470All Other Transportation Equipment Manufacturing0.0%910$0
471Hay Farming0.0%530$0
472Other Concrete Product Manufacturing0.0%810$0
473All Other Miscellaneous Crop Farming0.0%1220$0
474Construction Sand and Gravel Mining0.0%990$0
475Other Performing Arts Companies0.0%780$0
476Postal Service0.0%800$0
477Direct Mail Advertising0.0%510$0
478Upholstered Household Furniture Manufacturing0.0%820$0
479Ready-Mix Concrete Manufacturing0.0%700$0
480Drafting Services0.0%870$0
481Iron and Steel Forging0.0%650$0
482Tobacco Stores0.0%1250$0
483General Medical and Surgical Hospitals0.0%890$0
484Consumer Electronics and Appliances Rental0.0%750$0
485Farm Management Services0.0%660$0
486Farm and Garden Machinery and Equipment Merchant Wholesalers0.0%1080$0
487Ornamental and Architectural Metal Work Manufacturing0.0%1520$0
488Cutting Tool and Machine Tool Accessory Manufacturing0.0%620$0
489Home and Garden Equipment Repair and Maintenance0.0%1150$0
490Truck Trailer Manufacturing0.0%660$0
491Finfish Fishing0.0%540$0
492Glass Product Manufacturing Made of Purchased Glass0.0%870$0
493Other Motion Picture and Video Industries0.0%660$0
494Office Machinery and Equipment Rental and Leasing0.0%510$0
495Jewelry and Silverware Manufacturing0.0%1090$0
496Men’s Clothing Stores0.0%660$0
497Commercial Air, Rail, and Water Transportation Equipment Rental and Le0.0%540$0
498Instruments and Related Products Manufacturing for Measuring, Displayi0.0%540$0
499Support Activities for Forestry0.0%1450$0
500Animal (except Poultry) Slaughtering0.0%690$0
501Shellfish Fishing0.0%590$0
502Motion Picture Theaters (except Drive-Ins)0.0%500$0

What This Means for Borrowers

  • Industry matters — the difference between 0% and 9% default rates is enormous. Lenders know this and price accordingly.
  • Retail is risky — clothing, supplements, and general retail consistently show higher default rates.
  • Healthcare is safe — dental, medical, and surgical practices rarely default on SBA loans.
  • Asset-heavy = lower risk — industries with real estate, equipment, or inventory as collateral default less.

Worried About Risk? Let Us Find the Right Lender.

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Data source: U.S. Small Business Administration FOIA 7(a) loan data, FY2020–FY2025. Default rate = loans with chargeoff dates / total loans.