Best Iowa SBA Lenders & Rates (2026)
2025 FOIA data: top lenders, rates, industries & loan types in Iowa
SBA Loans in Iowa
Iowa businesses received $178.6M in SBA 7(a) loan approvals across 429 businesses in 2025, supporting 4,024 jobs. With 101 active SBA lenders competing for business in Iowa, comparing offers is essential — rates vary significantly by lender.
The average SBA loan in Iowa is $416K at 9.9%, which is 0.42% below the national average of 10.32%. The top lender in Iowa is Newtek Bank, National Association, with the most-funded industry being Hotels (except Casino Hotels) and Motels.
SBA Loans in Iowa by Business Type
Whether you’re starting a business, buying one, or expanding an existing operation in Iowa, here’s how SBA lending breaks down:
Startups represent 16% of Iowa SBA loans (72 loans totaling $29.0M). Business acquisitions (change of ownership) account for 24% (62 loans, $42.4M). Existing businesses make up the largest share at 45% (208 loans). If you’re buying a business in Iowa, acquisitions are a well-established use case for SBA 7(a) loans.
Iowa vs. National Average
How does Iowa’s SBA lending market compare to the national average in 2025?
Iowa9.9%
National Avg10.32%
✅ Iowa’s avg rate is 0.42% lower than the national average
Iowa$416K
National Avg$478K
Iowa’s avg loan is 0.9x the national average
A rate lower than the national average of 10.32% is significant context for Iowa borrowers. Individual rates depend on your credit profile, deal structure, loan size, and the specific lender you work with — which is why comparing multiple offers from different banks is consistently the best strategy to get the lowest possible rate on your SBA loan.
Top SBA Lenders in Iowa (2025 Data)
The table below ranks every SBA 7(a) lender active in Iowa in 2025 by total dollar volume approved. This data comes directly from SBA FOIA records and represents actual funded loans — not pre-qualifications or applications received.
| # | Lender | Volume | Loans | Avg Rate |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | $8.4M | 18 | 10.56% |
| 2 | U.S. Bank, National Association | $8.2M | 85 | 10.8% |
| 3 | Climate First Bank | $7.2M | 4 | 9.44% |
| 4 | GBank | $6.9M | 3 | 8.67% |
| 5 | Truliant FCU | $6.8M | 4 | 10% |
| 6 | Farmers State Bank | $6.7M | 17 | 8.52% |
| 7 | Central Bank | $6.5M | 2 | 8% |
| 8 | MidWestOne Bank | $6.0M | 12 | 9.77% |
| 9 | Live Oak Banking Company | $5.8M | 6 | 9.09% |
| 10 | The Huntington National Bank | $5.7M | 12 | 9.78% |
| 11 | Northeast Bank | $5.3M | 35 | 11.01% |
| 12 | Pathward National Association | $5.0M | 2 | 9% |
| 13 | Availa Bank | $4.6M | 2 | 6.7% |
| 14 | Wells Fargo Bank National Association | $4.1M | 7 | 11.05% |
| 15 | TruBank | $3.8M | 4 | 8.75% |
Pay close attention to the “Avg Rate” column — rates vary significantly between lenders operating in the same state. The spread between the lowest and highest rate in this table can represent tens of thousands of dollars over the life of your loan. The top lenders in Iowa have funded the most deals locally, meaning their loan officers understand Iowa’s commercial real estate values, industry mix, and economic conditions. This familiarity typically translates into faster underwriting and more competitive terms.
However, don’t limit your search to local banks alone. Many of the top national SBA lenders fund loans across all 50 states and may offer better rates or more experience with your specific industry. An SBA loan broker like GoSBA gives you access to both Iowa-based lenders and national lenders with a single application — ensuring you get the most competitive offer available.
Get Matched with the Best SBA Lender in Iowa
One 5-minute application. 101 lenders competing for your deal. GoSBA matches you to the best fit — free, no obligation.
Top Industries Funded in Iowa
SBA lending in Iowa reflects the state’s economic profile and business formation trends. The table below shows which industries received the most SBA 7(a) funding in Iowa in 2025, ranked by total dollar volume:
| Industry | Loans | Volume |
|---|---|---|
| Hotels (except Casino Hotels) and Motels | 7 | $10.5M |
| Limited-Service Restaurants | 12 | $8.5M |
| Meat Processed from Carcasses | 2 | $6.2M |
| Offices of Dentists | 4 | $5.7M |
| Full-Service Restaurants | 20 | $5.2M |
| Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Sta | 1 | $5.0M |
| All Other Plastics Product Manufacturing | 2 | $5.0M |
| Iron Foundries | 2 | $4.6M |
| Fitness and Recreational Sports Centers | 15 | $3.8M |
| Plumbing, Heating, and Air-Conditioning Contractors | 6 | $3.7M |
| All Other Specialty Trade Contractors | 4 | $3.5M |
| Fabricated Pipe and Pipe Fitting Manufacturing | 2 | $3.3M |
| Elementary and Secondary Schools | 1 | $3.3M |
| Veterinary Services | 1 | $3.2M |
| Soil Preparation, Planting, and Cultivating | 2 | $3.1M |
If your business operates in one of Iowa’s top-funded industries, you’re in a strong position. Lenders who have funded dozens of similar businesses in your state understand the unit economics, seasonal revenue patterns, and typical margins for your sector. This familiarity translates into faster approvals, less documentation back-and-forth, and more accurate risk pricing — which typically means better terms for the borrower.
Even if your industry isn’t listed above, SBA 7(a) loans are available for nearly every legal business type. An SBA loan broker can identify which lenders have the most experience with your specific industry.
Top Cities for SBA Loans in Iowa
SBA lending activity within Iowa is concentrated in major metropolitan areas, but businesses in smaller cities and towns also receive significant funding. The table below shows where in Iowa the most SBA 7(a) loans were funded in 2025:
| City | Loans | Volume |
|---|---|---|
| West Des Moines | 19 | $11.4M |
| Des Moines | 41 | $10.1M |
| Cedar Rapids | 26 | $10.0M |
| Grimes | 8 | $5.8M |
| Waterloo | 8 | $5.4M |
| Webster City | 4 | $5.3M |
| Altoona | 5 | $5.1M |
| Palmer | 1 | $5.0M |
| Monroe | 2 | $5.0M |
| Davenport | 12 | $4.4M |
How to Get an SBA Loan in Iowa
Option 1: Apply directly to one of the top Iowa lenders above. You’ll get a single quote from one bank.
Option 2: Use an SBA loan broker (recommended). GoSBA Loans submits your application to multiple Iowa-active lenders simultaneously, creating competition for your deal. Better rates, faster approvals — at no cost to you.
Frequently Asked Questions
How many SBA loans were funded in Iowa in 2025?
What is the average SBA loan interest rate in Iowa?
Can I get an SBA loan to start a business in Iowa?
Who is the top SBA lender in Iowa?
What industries get the most SBA loans in Iowa?
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Data sourced from official SBA 7(a) FOIA loan approval records for Calendar Year 2025, published by the U.S. Small Business Administration. For official information, visit sba.gov.
