Best Tennessee SBA Lenders & Rates (2026)
2025 FOIA data: top lenders, rates, industries & loan types in Tennessee
SBA Loans in Tennessee
Tennessee businesses received $546.9M in SBA 7(a) loan approvals across 1,020 businesses in 2025, supporting 10,309 jobs. With 119 active SBA lenders competing for business in Tennessee, comparing offers is essential — rates vary significantly by lender.
The average SBA loan in Tennessee is $536K at 10.39%, which is 0.07% above the national average of 10.32%. The top lender in Tennessee is Pinnacle Bank, with the most-funded industry being Hotels (except Casino Hotels) and Motels.
SBA Loans in Tennessee by Business Type
Whether you’re starting a business, buying one, or expanding an existing operation in Tennessee, here’s how SBA lending breaks down:
Startups represent 24% of Tennessee SBA loans (213 loans totaling $128.8M). Business acquisitions (change of ownership) account for 25% (106 loans, $138.3M). Existing businesses make up the largest share at 39% (548 loans). If you’re buying a business in Tennessee, acquisitions are a well-established use case for SBA 7(a) loans.
Tennessee vs. National Average
How does Tennessee’s SBA lending market compare to the national average in 2025?
Tennessee10.39%
National Avg10.32%
Tennessee’s avg rate is 0.07% higher than the national average
Tennessee$536K
National Avg$478K
Tennessee’s avg loan is 1.1x the national average
A rate higher than the national average of 10.32% is significant context for Tennessee 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 Tennessee (2025 Data)
The table below ranks every SBA 7(a) lender active in Tennessee 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 | Pinnacle Bank | $44.2M | 35 | 9.48% |
| 2 | Live Oak Banking Company | $43.7M | 40 | 9.38% |
| 3 | The Huntington National Bank | $37.6M | 79 | 9.84% |
| 4 | Newtek Bank, National Association | $33.7M | 105 | 10.97% |
| 5 | Cadence Bank | $23.5M | 28 | 10.1% |
| 6 | Regions Bank | $22.5M | 28 | 8.85% |
| 7 | U.S. Bank, National Association | $20.8M | 95 | 10.37% |
| 8 | Northeast Bank | $17.8M | 124 | 10.86% |
| 9 | United Midwest Savings Bank National Association | $15.1M | 33 | 10.23% |
| 10 | Bank of America, National Association | $14.7M | 13 | 7.02% |
| 11 | Readycap Lending, LLC | $10.6M | 53 | 12.74% |
| 12 | Old National Bank | $10.5M | 12 | 8.52% |
| 13 | United Community Bank | $9.9M | 7 | 9.36% |
| 14 | GBank | $9.8M | 2 | 8.5% |
| 15 | BayFirst National Bank | $9.2M | 40 | 12.16% |
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 Tennessee have funded the most deals locally, meaning their loan officers understand Tennessee’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 Tennessee-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 Tennessee
One 5-minute application. 119 lenders competing for your deal. GoSBA matches you to the best fit — free, no obligation.
Top Industries Funded in Tennessee
SBA lending in Tennessee reflects the state’s economic profile and business formation trends. The table below shows which industries received the most SBA 7(a) funding in Tennessee in 2025, ranked by total dollar volume:
| Industry | Loans | Volume |
|---|---|---|
| Hotels (except Casino Hotels) and Motels | 13 | $41.3M |
| Full-Service Restaurants | 34 | $22.7M |
| Snack and Nonalcoholic Beverage Bars | 39 | $20.2M |
| Limited-Service Restaurants | 35 | $15.3M |
| Offices of Certified Public Accountants | 12 | $14.0M |
| Fitness and Recreational Sports Centers | 30 | $12.1M |
| Offices of Dentists | 9 | $12.1M |
| Other Personal Care Services | 23 | $11.6M |
| Pet Care (except Veterinary) Services | 14 | $10.2M |
| All Other Specialty Trade Contractors | 18 | $9.3M |
| General Automotive Repair | 20 | $9.2M |
| Computer Systems Design Services | 5 | $7.2M |
| RV (Recreational Vehicle) Parks and Campgrounds | 2 | $7.2M |
| Child Day Care Services | 10 | $6.4M |
| Machine Shops | 3 | $6.1M |
If your business operates in one of Tennessee’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 Tennessee
SBA lending activity within Tennessee is concentrated in major metropolitan areas, but businesses in smaller cities and towns also receive significant funding. The table below shows where in Tennessee the most SBA 7(a) loans were funded in 2025:
| City | Loans | Volume |
|---|---|---|
| Nashville | 164 | $107.0M |
| Chattanooga | 43 | $42.8M |
| Memphis | 66 | $41.7M |
| Knoxville | 102 | $36.5M |
| Murfreesboro | 39 | $18.8M |
| Clarksville | 39 | $16.8M |
| Franklin | 43 | $13.5M |
| Johnson City | 11 | $13.3M |
| Gallatin | 12 | $13.1M |
| Hendersonville | 26 | $12.3M |
How to Get an SBA Loan in Tennessee
Option 1: Apply directly to one of the top Tennessee 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 Tennessee-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 Tennessee in 2025?
What is the average SBA loan interest rate in Tennessee?
Can I get an SBA loan to start a business in Tennessee?
Who is the top SBA lender in Tennessee?
What industries get the most SBA loans in Tennessee?
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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.
