10/11/23 - The Small Business Administration released their loan approval summary report for small-to-medium sized businesses as of October 3, 2023. The SBA Loan Summary Report is a good market indicator of main street, small business & middle market merger & acquisition activity. The SBA 7(a) loan is the primary loan product banks use to finance small business acquisitions. Small businesses are generally considered those doing $5mm or less in annual revenue.

The total 7(a) approval count is outpacing 2022 in number of transactions. Despite rising interest rates main street activity remains steady. The average transaction size year-to-date is for $877,321.

The Accommodations & Food Services industry is outpacing the rest of the market. Of all loan approvals, 21.1% of them are in the industry. The next closest is Retail Trade at 14.4%. The Accommodations & Food Services industry operates under NAICS 72, and comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services establishments.

Through October of 2023, 654 Accommodations & Food Services deals nationwide have been approved through SBA Financing. These 654 deals represent $561,054,800 in total transaction value. The average sized deal for this industry its $857,882 - just under the overall average.