FranchiseBudget

SBA Franchise Loans in Iowa

2026 lenders, rates, and how to apply

Iowa SBA-approved lenders issued 1,520 SBA 7(a) loans in 2025, averaging $295,000 per loan. About 11.0% of those went to franchise businesses, with franchise loans averaging $355,000.

1,520
SBA 7(a) loans (2025)
$295,000
Average loan amount
11.0%
Franchise share of SBA
$355,000
Avg franchise loan

Top SBA Franchise Lenders in Iowa

1

Hills Bank and Trust

Highest SBA 7(a) franchise loan volume in Iowa

2

MidWestOne Bank

Second-highest SBA franchise volume

National franchise lenders (Live Oak Bank, Guidant Financial, ApplePie Capital) also serve Iowa. Compare at least 3 lenders before signing.

SBA Loan Payment Estimator

$2,571
Monthly payment
$0
Total interest
$0
Down payment due

Estimate only. Actual rates and terms depend on credit, collateral, and lender. SBA guarantee fee (0.25-3.75%) not included.

How to Get an SBA Franchise Loan in Iowa

1

Confirm your franchise is SBA-approved

Check the SBA Franchise Directory at sba.gov. If your brand isn't listed, your lender will need to submit the FDD for SBA review (adds 2-4 weeks).

2

Build your business plan

Iowa has 15 SBDC locations and 5 SCORE chapters that offer free business plan help. Include 3-year projections and use FDD Item 19 data if available.

3

Compare lenders

Start with Hills Bank and Trust (highest SBA franchise volume in Iowa). Compare at least 2-3 SBA-approved lenders. Rates, closing speed, and franchise experience vary a lot.

4

Apply and close

SBA 7(a) loan processing takes 30-90 days. Have your equity injection ready. Expect the lender to verify your personal credit, tax returns (2-3 years), and the franchise agreement.

Iowa SBA District OfficeVisit SBA.gov office page