Industry data
Financing for beauty salons: what the loan data shows
3,213 SBA 7(a) loans went to beauty salons recently, at a median of $70,000. The lenders that make them, the terms they write, and what underwriters look at.
3,213 SBA 7(a) loans went to beauty salons in the most recent fiscal years, at a median of $70,000 over 10 years. 34.3% went to new or under-two-year-old businesses, and the most active lender was The Huntington National Bank.
Also searched as: hair salon loans, spa and salon financing.
What a beauty salon loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Beauty salons | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 3,213 | 214,102 |
| Median loan | $70,000 | $150,000 |
| 25th - 75th percentile | $29,050 - $216,550 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.50% | 10.25% |
| Share to new businesses | 34.3% | 33.6% |
| Charge-off rate, FY2010-19 | 7.8% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run smaller than average. The median of $70,000 is 53% below the $150,000 national median. Smaller loans price higher under the SBA spread caps, so budget for a rate above the headline range.
- Startup share is about average, at 34% against 34% nationally.
- No single lender dominates, but the top three made 27% of these loans, so the shortlist below covers most of the active market.
Which lenders actually fund beauty salons
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to beauty salons, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| The Huntington National Bank | 386 | $50,000 | 46% | 10.25% |
| U.S. Bank | 267 | $25,400 | 22% | 9.49% |
| TD Bank | 220 | $25,000 | 40% | 11.50% |
| Readycap Lending, LLC | 200 | $50,000 | 4% | 14.00% |
| Manufacturers and Traders Trust Company | 198 | $33,400 | 42% | 11.25% |
| Newtek Bank | 129 | $105,000 | 19% | 11.25% |
| Northeast Bank | 110 | $50,000 | 13% | 10.75% |
| BayFirst National Bank | 91 | $139,000 | 2% | 12.25% |
| Wells Fargo Bank | 75 | $20,000 | 89% | 13.00% |
| Celtic Bank Corporation | 73 | $120,000 | 11% | 10.50% |
Where these businesses borrow
Most active states for beauty salons: California (299), Texas (246), Florida (234), New York (230), Ohio (179), Pennsylvania (142).
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.
How to actually finance one
The data above says what lenders did. This is what the process looks like from your side, and what is specific to beauty salons rather than true of any business.
What you are actually financing
| Transaction | What it involves |
|---|---|
| Buying an existing salon | You buy the chairs, the fit-out and ideally the stylists and their books. |
| New build-out | Plumbing, electrical, stations, wash units, reception — more construction than people expect. |
| Booth rental model | Far lower capital requirement, and a different business entirely. |
| Equipment and inventory | Smaller ticket, often financed informally. |
Matching the money to the transaction
Buying or building a salon
SBA 7(a), covering improvements, equipment and working capital.
Smaller amounts
SBA microloans or a CDFI — this sector's median loan is small, and these routes fit it.
The fit-out specifically
See renovation and build-out — and match the term to the lease, not the fit-out.
The numbers this sector is judged on
- Whether the stylists come with the business. A salon purchase where the operators leave is a purchase of furniture.
- Chair count and utilisation, and the split between employed and booth-rental.
- The lease, since a plumbed-out salon cannot move cheaply.
- Retail product revenue, which is higher margin and often undervalued in a sale.
- Your own licence and experience.
The obstacle specific to this sector
The sector-specific paperwork
- Returns and chair-by-chair revenue if buying
- The staffing model, and any agreements keeping stylists in place
- The lease and the fit-out condition
- Your licence and experience
- A realistic build-out quote if fitting out
The general list is in the document checklist, and the application readiness check will tell you how much of it you actually have. Before any of it, run the payment through the affordability calculator — coverage is the test most declined applicants actually failed.