Industry data
Financing for auto repair shops: what the loan data shows
3,095 SBA 7(a) loans went to auto repair shops recently, at a median of $180,000. The lenders that make them, the terms they write, and what underwriters look at.
3,095 SBA 7(a) loans went to auto repair shops in the most recent fiscal years, at a median of $180,000 over 10 years. 25.9% went to new or under-two-year-old businesses, and the most active lender was U.S. Bank.
What a auto repair shop loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Auto repair shops | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 3,095 | 214,102 |
| Median loan | $180,000 | $150,000 |
| 25th - 75th percentile | $50,000 - $571,000 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.24% | 10.25% |
| Share to new businesses | 25.9% | 33.6% |
| Charge-off rate, FY2010-19 | 6.4% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $180,000 is 20% above the $150,000 national median. Expect lenders in this market to be geared toward bigger deals, and expect a small request to get less attention.
- Startup share is about average, at 26% against 34% nationally.
- Lending here is fragmented. The top three lenders made only 21% of these loans between them, so no single institution owns this market. That is good news: it means shopping genuinely pays.
What lenders look at in this sector
Lowest startup share of the service niches here, which tells you lenders in this sector strongly prefer buying an existing shop over opening one. Bay count, technician retention and whether the building is owned or leased drive the terms.
Which lenders actually fund auto repair shops
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to auto repair shops, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| U.S. Bank | 254 | $45,300 | 28% | 9.49% |
| The Huntington National Bank | 214 | $57,500 | 22% | 10.00% |
| Newtek Bank | 182 | $175,000 | 14% | 11.00% |
| Live Oak Banking Company | 180 | $772,500 | 21% | 9.24% |
| TD Bank | 170 | $50,000 | 30% | 11.30% |
| Manufacturers and Traders Trust Company | 153 | $50,000 | 22% | 11.25% |
| BayFirst National Bank | 107 | $150,000 | 3% | 12.25% |
| Northeast Bank | 74 | $126,750 | 14% | 10.50% |
| JPMorgan Chase Bank | 58 | $150,000 | 10% | 10.38% |
| Wells Fargo Bank | 57 | $30,000 | 84% | 11.62% |
Where these businesses borrow
Most active states for auto repair shops: California (404), Texas (238), Florida (174), New York (159), Ohio (129), Illinois (129).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Line of credit | For seasonality and payroll timing | 9.0% - 60.0% APR |
| SBA microloan | If you need under $50,000 | 8.0% - 13.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.