LMMMAlower middle market M&A

NAICS sector 62 · 3,476 financed acquisitions

$3.7bnCapital deployed

Health Care and Social Assistance

Since FY2019, 3,476 businesses in this sector were bought using an SBA 7(a) acquisition loan, together carrying $3.7bn of bank debt. The median deal was financed with $683,250 over 10 years at 7.50%.

§1

Volume and price

What businesses in health care and social assistance financed by an SBA 7(a) acquisition loan actually cost, and how many of them there were.

Financed acquisitions3,476Disbursed loans, FY2019 to date
Capital deployed$3.7bnGross approval, all years
Median loan$683,250Half above, half below
Interquartile range$315k - $1.4MMiddle half of deals
Median rate7.50%3,476 loans with a recorded rate
Median term10 years3,476 loans with a recorded term

Source: SBA 7(a) FOIA loan-level extract, change-of-ownership approvals, FY2019 onward. Data as of 30 June 2026. n = 3,476 financed acquisitions.

Loan size distribution
Size bandAcquisitionsShare
Under $250k67419.4%
$250k to $500k66219.0%
$500k to $1M90526.0%
$1M to $2M72120.7%
$2M to $3.5M3078.8%
$3.5M to $5M1524.4%
$5M and above551.6%
All3,476100.0%

The 7(a) programme caps a single loan at $5M, so the top band is a ceiling of the instrument, not of the market. Deals above it are financed conventionally and do not appear in this file at all.

§2

How the paper was structured

Loan terms here are not spread smoothly. They spike at exactly ten years and again at exactly twenty-five, with very little in between. Those two points are the programme's maturity ceilings, and which one applies depends on what secures the loan, so a term running past ten years indicates real property was financed alongside the business.

Term structure
TermWhat it indicatesAcquisitionsShare
Under 10 yearsShorter than the goodwill maximum2978.5%
Exactly 10 yearsThe standard goodwill-only note1,98257.0%
10 to 20 yearsMixed collateral2065.9%
20 years and overReal property financed with the business99128.5%

57.0% of loans here run exactly ten years and 28.5% run twenty years or more. n = 3,476 loans with a recorded term.

§3

What happened next

Two outcomes are visible in the file: approvals that never funded, and funded loans that later charged off. Both are facts about deals, not forecasts.

Approvals cancelled9.4%362 of 3,838 approvals never disbursed
Charged off, FY2019-FY2021 cohort1.70%25 of 1,470 funded loans
Jobs recorded78,455Jobs supported, as reported by the lender at approval
Franchised15.1%Share of acquisitions carrying a franchise name

The charge-off share is cumulative as of 30 June 2026 for loans approved in FY2019-FY2021. Those loans are five to seven years into terms that are usually ten years, so the figure is a floor and the lifetime rate will be higher. It is not comparable to a rate computed over a fully matured cohort, and the site does not publish one for later years for that reason.

§4

By fiscal year

FY19FY20FY21FY22FY23FY24FY25FY26*

* FY2026 is incomplete. The extract closes 30 June 2026, nine months into a fiscal year that ends 30 September, and some FY2026 approvals have not yet disbursed. Do not read the last column as a decline.

§5

Industry groups inside this sector

A sector median hides a lot. These are the four-digit groups within it that clear the reporting floor on their own.

Industry groups within Health Care and Social Assistance
Industry groupAcquisitionsCapitalMedian loanMedian rateMedian termCancelled
6213 Offices of Other Health Practitioners831$465M$337,5007.75%10 years8.2%
6244 Child Care Services692$873M$796,3507.50%14.9 years11.5%
6216 Home Health Care Services535$568M$709,0007.65%10 years9.8%
6233 Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly397$576M$1,000,0007.20%25 years7.5%
6212 Offices of Dentists385$406M$788,0006.55%10 years9.4%
6241 Individual and Family Services215$257M$640,0008.75%10 years6.9%
6211 Offices of Physicians134$161M$785,3507.74%10 years11.3%
6231 Nursing Care Facilities (Skilled Nursing Facilities)69$111M$1,251,4007.35%25 years11.5%
6239 Other Residential Care Facilities55$62.3M$1,000,0007.00%25 years17.9%
6214 Outpatient Care Centers54$74.0M$968,2009.00%10 years8.5%
6232 Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities36$57.6M$1,105,5009.38%10 years7.7%
6215 Medical and Diagnostic Laboratories34$35.0M$714,0007.75%10 years8.1%
6219 Other Ambulatory Health Care Services29$23.6M$612,9007.75%10 years3.3%
§6

Where this sector changes hands

States with enough deals in this sector to report on their own.

Health Care and Social Assistance acquisitions by state
StateAcquisitionsCapitalMedian loanMedian rateMedian termCancelled
CA California429$507M$830,0007.50%10 years7.9%
FL Florida361$409M$770,4008.25%10 years9.1%
TX Texas300$429M$879,0007.25%10 years8.5%
WA Washington166$159M$810,5007.39%25 years11.7%
MN Minnesota139$83.8M$359,0008.00%10 years10.9%
OH Ohio139$146M$715,0008.00%10 years10.3%
GA Georgia124$144M$788,3007.75%10 years9.5%
MI Michigan118$87.5M$402,5006.75%10 years9.9%
NC North Carolina118$165M$825,0007.92%10 years11.3%
CO Colorado116$134M$773,0007.22%10 years4.9%
PA Pennsylvania105$96.0M$500,0007.50%10 years8.7%
AZ Arizona105$111M$780,0007.25%10 years7.1%
IL Illinois105$103M$575,3007.25%10 years8.7%
NJ New Jersey93$118M$998,0007.50%10 years6.1%
WI Wisconsin91$98.1M$513,9006.50%10 years5.2%
MA Massachusetts67$60.4M$567,4007.75%10 years10.7%
VA Virginia64$69.4M$661,4507.50%10 years9.9%
NY New York59$65.4M$750,0007.50%10 years18.1%
MO Missouri54$32.0M$380,0008.25%10 years8.5%
UT Utah49$55.9M$822,5007.75%10 years16.9%
MD Maryland48$54.6M$628,1007.00%10 years9.4%
KS Kansas41$33.0M$555,0006.11%10 years2.4%
IN Indiana40$36.5M$627,3507.00%10 years13.0%
OR Oregon39$41.7M$725,4008.27%10 years9.3%
SC South Carolina36$30.3M$581,5007.00%10 years10.0%
KY Kentucky35$44.1M$646,0007.75%10 years5.4%
OK Oklahoma34$37.1M$607,3007.62%10 years5.6%
IA Iowa33$12.8M$206,0008.25%10 years2.9%
NV Nevada32$30.9M$647,2507.50%10 years13.5%
ID Idaho32$20.6M$438,1507.38%10 years8.6%
§7

Concentration

Most active states
StateAcquisitionsShare
CA California42912.3%
FL Florida36110.4%
TX Texas3008.6%
WA Washington1664.8%
MN Minnesota1394.0%
OH Ohio1394.0%
GA Georgia1243.6%
MI Michigan1183.4%
NC North Carolina1183.4%
CO Colorado1163.3%
PA Pennsylvania1053.0%
AZ Arizona1053.0%

A lender without a link wrote fewer acquisition loans than the reporting floor and has no page of its own. Shares are of the 3,476 financed acquisitions in this sector.

§8

What to read next

If you are selling

Thinking about selling

The figures above describe health care and social assistance businesses at the size the 7(a) programme reaches. They describe a market, not your business. FIH advises owners of privately held companies on sale processes, and the first conversation costs nothing and commits you to nothing.

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If you are buying

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FIH is an advisory firm that generally acts for sellers, so registering here does not make you a client and no business is listed or offered for sale on this site. It records what you buy, where, at what price you can transact and how a purchase would be funded. It is free, it commits you to nothing, and no deal flow is promised in return.

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Figures on this page are SBA loan amounts, not sale prices. Nothing on this site is an offer, a solicitation, a valuation of any business, or investment advice, and no statement here promises a transaction, a price or a result.