Question 1

Is SBA lending in San Antonio growing or shrinking right now?

Accepted Answer

Much bigger than it was two years ago, and running behind last year on the current pace. The SBA San Antonio District approved 1,104 7(a) loans for $546.5 million in fiscal 2024, then 1,389 loans for $845.6 million in fiscal 2025. Fiscal 2026 stood at 780 loans for $491.8 million through July 31, which is ten months of the year and short of the fiscal 2025 pace. Read that with one caveat: the San Antonio District is 55 counties, including Travis, Williamson, Hays, and Laredo, so those totals are south central Texas, not Bexar County. One more thing worth knowing before you take a meeting. The top 7(a) lenders in this district are out-of-state SBA specialists such as Live Oak, Newtek, and Huntington, not San Antonio banks, so the local branch relationship you have may not be the file's best home. We shop it across our partner network instead. See the SBA program page for structure.

Question 2

Why does nobody around here seem to use the 504?

Accepted Answer

Because locally, almost nobody does. The whole San Antonio District closed 80 504 loans for $113.0 million in fiscal 2025, and Bexar County accounted for just 9 of them. For a metro with 280,254 small businesses, that is an underused program rather than a crowded one. Two things follow. First, the thin volume is not evidence the program is a bad fit, it usually means the borrower was never shown the 504 side of the comparison. Second, do not assume heavy local expertise. Capital CDC, based in Austin, handles roughly 61% to 66% of the district's 504 dollars; LiftFund is headquartered in San Antonio and is second in the district, though its widely quoted portfolio figure is cumulative microlending and has nothing to do with commercial real estate scale. Nationally the 504 is up in fiscal 2026, but that is a national trend and we won't claim it for Bexar County. Read 7(a) versus 504 before you pick a lane.

Question 3

How much of the building do I have to occupy?

Accepted Answer

51% of an existing building, 60% of a new one, and the new-construction rule is stricter than most people are told. Under 13 CFR 120.131, an existing building needs your operating business in at least 51% of the rentable space, and you can lease out the rest permanently. New construction is different: you must occupy at least 60%, and only 20% of the space may be permanently leased to third parties. The remaining 20% has to be covered by an absorption plan, meaning space you intend to occupy within three years and fully occupy within ten. The common line that you can occupy 60% and rent out the other 40% is simply wrong, and it is the kind of error that kills a file after you have spent money on it. If your plan is majority-tenant from day one, that is an investment property and an SBA loan is the wrong tool. Talk to your attorney or CPA about how your entity structure and lease plan sit against the rule.

Question 4

Is a 504 really just 10% down, and what do the rates look like?

Accepted Answer

Ten percent is the floor, not the rule, and two common San Antonio scenarios push it to 15% or 20%. Under 13 CFR 120.910 the borrower puts in 10% on an ordinary project, 15% if the business has been operating under two years or the building is single purpose, and 20% if both are true. A new venture buying a car wash, a restaurant shell, or a self-storage building hits the 20% case. The CDC piece is capped at 40% of the project cost under 13 CFR 120.930, with the third-party lender taking the balance. On pricing, as of August 2026 the 504 effective debenture rate was about 6.272% on the 25-year and 6.274% on the 20-year. Those are all-in numbers that already include the CDC, SBA, and central servicing agent fees, so compare them to a bank quote plus its fees, not to a bare note rate. Small manufacturers run roughly 25 basis points under that because the annual fee is waived. On the 7(a) side, the prime rate has sat at 6.75% since December 2025, and SBA's variable ceiling is prime plus 3.0% over $350,000, which works out to 9.75% at that prime. Your actual quote comes from the lender and is subject to underwriting. Rates move monthly, so confirm the current number before you model it.

Question 5

I heard SBA fees were waived. Is that still true?

Accepted Answer

No. Fees came back for fiscal 2026, and any page still saying otherwise is stale. For loans approved between October 1, 2025 and September 30, 2026, the 7(a) upfront guaranty fee is back at 2% to 3.5% and up depending on size, after being zero under $1 million in fiscal 2025. The 504 upfront fee returned at 0.50%, while the annual service fee was cut to 0.209%. Budget the upfront fee into your closing costs rather than discovering it at the commitment stage. There is a real carve-out, and San Antonio has 4,196 small manufacturers who may qualify for it: a manufacturer pays no 7(a) upfront fee at or under $950,000, has 504 fees waived, and gets the higher $5.5 million 504 cap under 13 CFR 120.931 instead of the standard $5 million. If you run a NAICS 31 to 33 operation, say so on the first call, because it changes both the pricing and the ceiling.

Question 6

What recent SBA rule changes are most likely to catch my file?

Accepted Answer

An ownership citizenship rule and a tighter underwriting SOP, both current as of August 2026. Effective March 1, 2026, SBA policy requires that 100% of a borrower's direct and indirect owners be US citizens or US nationals with a US principal residence. Under that notice, lawful permanent residents, meaning green card holders, may not hold any ownership percentage in an SBA borrower. Note that SBA's posted SOP 50 10 8 document still carries the older language that included permanent residents; the notice governs. This is SBA policy, not our rule and not a comment on anyone's status, and it is the first thing to check on your cap table before you spend money on an appraisal. If it rules you out, conventional or private financing is still open to you. Separately, SOP 50 10 8 raised the small business credit score floor from 155 to 165, removed the preferred lender override of a failed screen, reinstated the franchise directory, and now requires seller debt used in the equity injection to be on full standby for the life of the loan and capped at half the injection. Confirm your own situation with your attorney or CPA, and with the lender, before you rely on any of it.

SBA Financing in San Antonio

How it works

Run your SBA Financing numbers.

SBA Financing in San Antonio: local questions

Guides for SBA Financing

SBA Financing vs. other options

Other programs in San Antonio

Funding San Antonio deals fast.