Buying a Business in Alabama
The Numbers
FY2025 Acquisition Loans
74
$89.9M approved
Median Loan
$816k
FY2020 through FY2025
Loans Since FY2020
383
$478M in total approvals
Share of U.S. Activity
1.1%
Of change-of-ownership loans
What the Data Says
Alabama ranks 27th of 53 states and territories for change-of-ownership SBA 7(a) lending: 383 loans since FY2020, 1% of the national total.
The typical deal runs large: its $816k median loan sits above the $650k midpoint across states, so expect bigger checks and the larger injection and cash flow they need.
Activity is accelerating: FY2025's 74 loans ran ahead of the state's own ~64 a year pace since FY2020.
The most-financed target is hotels (except casino hotels) and motels (30 loans), and the 5 most active lenders wrote about 32% of the state's acquisitions, a broad lender field.
Most Active Acquisition Lenders in Alabama
- 1. Live Oak Banking Company54 loans
- 2. The Huntington National Bank20 loans
- 3. United Midwest Savings Bank National Association17 loans
- 4. Pinnacle Bank (TN)17 loans
- 5. ServisFirst Bank15 loans
A lender being active in Alabama does not require a local branch; several top SBA lenders work nationally. Build a shortlist with Lenders.
What Gets Bought in Alabama
- Hotels (except Casino Hotels) and Motels30 loans
- Broilers and Other Meat Type Chicken Production22 loans
- Insurance Agencies and Brokerages20 loans
- Limited-Service Restaurants19 loans
- Full-Service Restaurants16 loans
Industry-specific pricing and diligence live in the Guides. Where the buyable targets sit in Alabama, by county, is in the Alabama buying guide.
By Metro Area in Alabama
Birmingham, AL
113 purchase loans, median $765k. Bought most: Limited-Service Restaurants. Most active lender: ServisFirst Bank (11).
Mobile, AL
42 purchase loans, median $795k. Bought most: Hotels (except Casino Hotels) and Motels. Most active lender: Live Oak Banking Company (7).
Daphne-Fairhope-Foley, AL
39 purchase loans, median $558k. Bought most: All Other General Merchandise Retailers. Most active lender: Live Oak Banking Company (13).
Columbus, GA-AL
29 purchase loans, median $1.00M. Bought most: Hotels (except Casino Hotels) and Motels. Most active lender: GBank (3).
Huntsville, AL
29 purchase loans, median $877k. Bought most: Limited-Service Restaurants. Most active lender: Live Oak Banking Company (4).
Every metro area that drew 20 purchase loans, with three lenders each, is in the metro table.
Method & Source
Computed from the SBA 7(a) FOIA loan-level dataset (FY2020 through FY2025), filtered to approvals flagged change of ownership with a Alabama project address. Approvals, not closings; excludes conventional and 504 financing.