As we pass the midpoint of 2026, we've been analyzing the types of projects moving through the SBA 504 program. While every market is unique, the activity WBD has experienced this year provides valuable insight into where many small business owners are focusing investment efforts.
At WBD, our fiscal year ends September 30. Through the first three quarters of our fiscal year, 130 SBA 504 projects have been approved, totaling more than $131 million in SBA 504 financing and leveraging approximately $360 million in total project costs. What stands out isn't just the volume – it’s the composition of those projects. Nearly 88 percent of approvals have involved established businesses through acquisitions, ownership transitions, facility purchases, or expansion initiatives.
Taken together, these trends provide a snapshot of where small business owners are investing and planning for the future.
Ownership transition activity remains strong
The largest category of approvals this year has been change of ownership transactions, accounting for 31 percent of all approved projects.
Many business owners are approaching retirement age, leading to continued activity involving management buyouts, family succession plans, employee ownership transitions, and third-party acquisitions. This trend reflects the broader ownership transition discussions taking place across many industries and communities.
As business owners consider long-term succession strategies, financing often plays a critical role in facilitating successful ownership transitions. We continue to see SBA 504 used as part of the broader financing structure for many acquisition projects, helping finance eligible owner-occupied commercial real estate and long-term equipment assets associated with the transaction. When paired with conventional financing, seller financing, and borrower equity, the SBA 504 program can help create a flexible capital structure that supports successful ownership transitions.
Existing businesses continue to invest
Expansion projects represent nearly 30 percent of approvals this year, indicating many established businesses remain focused on long-term growth and investment. Whether it's purchasing additional equipment, expanding manufacturing capacity, adding warehouse space, or constructing new facilities, business owners continue to invest in projects designed to improve efficiency, increase production, and support future demand.
In many cases, these projects are driven by practical business needs such as space constraints, operational efficiencies, workforce growth, or increasing customer demand. Many of these growth initiatives require significant investments in facilities and equipment. The SBA 504 program is designed to support these long-term fixed-asset investments, whether through building acquisition, new construction, facility expansion, renovation projects, or equipment purchases. By providing long-term fixed-rate financing with lower equity requirements than many conventional structures, the SBA 504 program can help businesses preserve working capital while investing in future growth.
Real estate a strategic priority
Property acquisitions remain another major driver of SBA 504 activity, representing 28 percent of approved projects. Many business owners continue to view owner-occupied commercial real estate as a strategic investment that provides stability, control over occupancy costs, and the opportunity to build long-term equity.
These projects often arise when companies are evaluating facility needs, approaching lease renewals, or looking to establish greater control over their operating locations. For businesses pursuing owner-occupied real estate, the SBA 504 program continues to provide an attractive financing option. Long-term fixed-rate financing, coupled with lower equity injection requirements, can help businesses acquire, construct, expand or renovate their facilities while maintaining liquidity for operations, staffing, and future investment.
Refinance activity emerging
While refinance projects represent a smaller share of overall volume, WBD has seen refinance activity become increasingly visible during the past three months. Refinancing accounted for 11 percent of the 61 approvals completed between April to June 2026.
Many businesses continue to evaluate their capital structures, looking for opportunities to improve cash flow, consolidate debt, or access equity for future investments. As market conditions evolve, refinancing remains an option some businesses are exploring as part of their overall financial strategy.
The SBA 504 refinance program can provide a valuable tool for eligible businesses seeking to improve their balance sheet or support future growth. In qualified situations, refinancing existing owner-occupied commercial real estate and equipment debt through the 504 program may enhance cash flow, provide payment stability through long-term fixed rates, and potentially access equity for eligible business expenses.
Established businesses are investing in their future
Perhaps the most notable takeaway from this year's activity is that business owners continue to make strategic, long-term investments in their companies. Whether through ownership transition, expansion, facility acquisition, or refinancing, the underlying theme is one of planning, investing and committing to future growth.
For lending partners and business advisors alike, these trends offer insight into the priorities and capital needs of today's small business community. Succession planning, growth initiatives, commercial real estate ownership, and balance sheet optimization continue to be common themes across many of the projects moving through the SBA 504 program.
As always, WBD remains committed to working alongside our lending partners to help provide financing solutions that support the long-term success of the businesses and communities we serve.
