Lenders Report Strong Q2 Growth in SBA Loan Applications from Service-Based Startups

As the U.S. economy continues its steady recovery in 2025, service-based startups are leading a new surge in SBA loan applications, particularly under the popular 7(a) program. With increased demand for services, better loan access, and enhanced startup tools, entrepreneurs are using SBA funding to grow, hire, and scale faster than ever.

📈 SBA Lending Surges in Q2 FY2025

According to iBusiness Funding, SBA approved 22,764 7(a) loans totaling $10B+ in Q2 FY2025—up 35% in loan count and 45% in funding compared to the same quarter in FY2024. Over 75% of these loans supported small service-oriented businesses with 10 or fewer employees.

Key Growth Metrics:

12,674 loans went to businesses with 5 or fewer employees
17,191 loans approved for businesses with 10 or fewer employees

🚀 Why Service-Based Startups Are Leading the Charge

Post-Pandemic Entrepreneurship: Many professionals are launching consulting firms, personal service brands, and tech-enabled businesses.
Consumer Demand: Growth in home services, wellness, IT support, and delivery-based models continues to rise.
Simplified SBA Access: Streamlined applications, expanded lender networks, and faster approvals (especially under $500K) are fueling adoption.

🍽️ Top Industries Seeing SBA Loan Growth

Full-Service Restaurants: Using SBA funds to expand dining space, renovate kitchens, and build staff.
Quick-Service & Food Trucks: Popular among startups for funding mobile kitchens and delivery infrastructure.
Home Services & Remodeling: With fewer home sales, consumers are upgrading—boosting demand for SBA-backed remodelers and contractors.

💡 Why SBA 7(a) Loans Are Ideal for Service Startups

Startups are using 7(a) loans to:

Lease office, kitchen, or storefront space
Hire staff and pay early-stage payroll
Purchase essential equipment or software
Market their services online and locally

Loan Highlights:

Loan amounts up to $5M
10-year terms for working capital
25-year terms for real estate
Interest rates from 7.5%–10.5%
Low down payments (10%)

🧾 How to Apply for an SBA Loan as a Startup

Estimate Your Funding Needs: Create a budget for lease, payroll, insurance, equipment, and marketing.
Check Eligibility: Ensure you’re a U.S.-based, for-profit business owned by U.S. citizens or permanent residents.
Gather Documents:
- Business plan and financial projections
- Personal and business tax returns
- Credit reports and debt schedule
Use SBA Lender Match: Or apply through a preferred lender like BoomerBiz Loans for faster approvals.

📊 What This Trend Means for the Future

The continued growth in SBA loan approvals signals a bright future for small service startups:

More digital tools and lending platforms are improving borrower access
Increased awareness is helping underserved entrepreneurs fund growth
Expect continued expansion in service sectors throughout 2025 and beyond

Q2 2025 has cemented the SBA 7(a) loan as a game-changer for service-based startups. Whether you’re launching a personal training studio, opening a food truck, or scaling a home care agency—SBA loans provide the fuel to turn ideas into impact.

Accessible, flexible, and built for growth, these loans are empowering a new generation of entrepreneurs to take control of their future.

🚀 Take the Next Step with BoomerBiz Loans

BoomerBiz Loans specializes in SBA loans for service startups and baby boomer acquisitions. Our 3-step process delivers fast approvals in 24–48 hours.

With loans up to $10M, low interest rates, and expert advisors, we help founders fund their future—fast.

👉 Start Your SBA Loan Application Now