Industry data
Financing for hardware stores: what the loan data shows
388 SBA 7(a) loans went to hardware stores recently, at a median of $367,900. The lenders that make them, the terms they write, and what underwriters look at.
388 SBA 7(a) loans went to hardware stores in the most recent fiscal years, at a median of $367,900 over 10 years. 35.1% went to new or under-two-year-old businesses, and the most active lender was Live Oak Banking Company.
What a hardware store loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Hardware retailers | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 388 | 214,102 |
| Median loan | $367,900 | $150,000 |
| 25th - 75th percentile | $100,000 - $1,000,000 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 9.25% | 10.25% |
| Share to new businesses | 35.1% | 33.6% |
| Charge-off rate, FY2010-19 | not enough history | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $367,900 is 145% 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 35% against 34% nationally.
- No single lender dominates, but the top three made 31% of these loans, so the shortlist below covers most of the active market.
- Rates run lower here. The median initial rate of 9.25% is 1.00 points below the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
Which lenders actually fund hardware stores
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to hardware stores, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| Live Oak Banking Company | 77 | $990,000 | 48% | 8.88% |
| The Huntington National Bank | 28 | $62,250 | 14% | 9.75% |
| Newtek Bank | 14 | $150,000 | 7% | 11.50% |
| Wells Fargo Bank | 13 | $604,800 | 92% | 7.89% |
| Northeast Bank | 11 | $105,000 | 27% | 10.00% |
| TD Bank | 10 | $125,000 | 30% | 9.50% |
| Banco Popular de Puerto Rico | 9 | $15,000 | 22% | 11.50% |
| U.S. Bank | 9 | $263,000 | 44% | 8.75% |
| Manufacturers and Traders Trust Company | 8 | $117,500 | 50% | 10.37% |
| Bank of America | 7 | $732,200 | 43% | 6.50% |
Where these businesses borrow
Most active states for hardware stores: California (43), Ohio (37), Texas (33), Wisconsin (25), Michigan (24), Florida (19).
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 |
| 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.