SBA Loans for Pet Care Businesses

Pet care businesses — boarding, grooming, daycare, and training — benefit from the same recession-resistant pet spending dynamic that makes veterinary SBA lending the strongest industry category in the portfolio. Charge-offs run at 0.70%, roughly half the SBA average.

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What's your pet care service?

Pet care SBA lending — by the numbers

SBA 7(a) loans to pet care (except veterinary) services (NAICS 812910), fiscal years 2020 through December 2025. Pulled from SBA FOIA 7(a) dataset.

Loans approved
2,865
FY2020-2025
Total approved
$1.41B
Combined 7(a) volume
Average loan size
$492K
Median $230K
Charge-off rate ↓
0.70%
vs 1.36% SBA avg — better than average
YoY growth ↑
+11.11%
Year-over-year loan volume
Top lending state
TX 8.9%
Then FL 7.3%, CA 6.3%

Pet care SBA vs. SBA overall — at a glance

-5.4%
Average loan size
$492K pet care  vs  $520K SBA avg
Close to SBA average loan size across all industries.
-0.66pp
Charge-off rate
0.70% pet care  vs  1.36% SBA avg
Materially below SBA average — one of the stronger performers in the portfolio.
2,865
Pet care SBA loans (FY2020-2025)
0.8% of all SBA 7(a) loans nationally across $1.41B in approvals.

Four financing paths for pet care deals

SBA 7(a) handles most pet care acquisitions and expansion needs. SBA 504 adds long-term fixed rates when real estate is part of the deal. Equipment financing is the non-SBA alternative for speed.

Acquisition + buildout

SBA 7(a) Standard

$5M
max
10%
min equity
60-90d
to close

Right for: facility buildouts for boarding and daycare, acquisitions, multi-location expansion.

Real estate + heavy equipment

SBA 504

$5.5M
max (SBA)
10%
min equity
75-120d
to close

Right for: buying the facility real estate. Particularly valuable in pet care given zoning sensitivity around noise and animal housing.

Under $500K deals

SBA 7(a) Small Loan

$500K
max
10%
min equity
45-75d
to close

Right for: grooming equipment, minor buildouts, working capital under $500K.

Non-SBA alternative

Equipment Financing

Full
replacement
Equip
as collateral
3-10d
to close

Right for: grooming tables, mobile unit outfitting. Faster than SBA.

How lenders evaluate pet care business files

Pet care SBA lending — boarding, grooming, daycare, training, and related services — sits in the same favorable structural territory as veterinary medicine (covered in our veterinary SBA guide). Pet spending is non-discretionary in ways most consumer categories are not, and the franchise-heavy industry structure creates clearer underwriting patterns than many small-business categories.

Facility-heavy capital requirements

A boarding or daycare facility requires 3,000 to 15,000 square feet depending on capacity, plus outdoor run space, dedicated bathing and grooming areas, climate control for animal welfare, and noise containment for neighbors. New facility buildouts run $400K to $1.5M in tenant improvements on top of any real estate acquisition. SBA 504 frequently handles the real estate portion while SBA 7(a) covers the operating business.

Franchise-heavy industry structure

Pet care is one of the most franchise-concentrated SBA categories at 27.5% franchise participation. Established franchise concepts — Camp Bow Wow, Dogtopia, Pet Supplies Plus grooming, and multiple regional brands — provide brand-level underwriting shortcuts when listed in the SBA Franchise Directory. Franchise operations close faster and at higher approval rates than independent startups at comparable operator profiles.

Revenue mix and recurring service patterns

Lenders evaluate the mix across boarding (high margin, seasonal peaks around holidays), daycare (recurring weekly revenue, stable cash flow), grooming (recurring 4-8 week cycles, strong retention), and training (package-based, higher margin, variable cash flow). Daycare-heavy operations with recurring weekly clients underwrite with unusually predictable cash flow; pure boarding operations show more seasonal variance.

Distinct from veterinary medicine

Pet care businesses don’t require veterinary licensure, which differentiates underwriting from veterinary practices. Some overlap exists — many boarding and daycare operations maintain veterinary relationships for emergency care or medicated boarding — but the businesses are economically distinct. See our SBA veterinary practice guide for the veterinary-side mechanics.

Franchise dominance and independent alternatives

Pet care is one of the most franchise-friendly SBA categories — 27.50% of pet care SBA loans are to franchise operators. Franchise brands provide operational playbooks (staff training, safety protocols, marketing systems) that new operators find valuable in a business where mistakes can have animal-welfare and liability consequences. Franchise-brand recognition also helps with local customer acquisition in a category where trust matters enormously.

Independent pet care businesses also qualify for SBA financing and close routinely, but typically require stronger operator experience, clearer facility diligence, and a documented operational playbook to compensate for the lack of franchise infrastructure. First-time operators without pet care experience typically find franchise concepts easier to fund on SBA than independent startups.

Charge-off performance and +11% YoY growth

Pet care charge-offs run at 0.70%%, compared to the SBA average of 1.36%% — a 0.51x ratio, roughly half the SBA average. The favorable performance reflects the same pet-spending-is-non-discretionary dynamics that drive veterinary performance, plus the stabilizing effect of franchise-industry structure on operational quality.

The +11% YoY growth in SBA lending to pet care reflects the broader pet-industry expansion: pet ownership increased meaningfully through the pandemic, pet-spending grew even as general consumer spending weakened, and consolidation activity has created exit markets for independent operators. Corporate pet-care consolidators (PE-backed rollups in boarding/daycare) actively acquire independent operations at competitive valuations, which both pushes prices up and creates SBA-financed individual-buyer alternatives.

For cross-reference: veterinary practices show even stronger performance (0.18% charge-off, +40% YoY) with higher-dollar average deals. Pet care and veterinary are complementary categories with different underwriting but shared industry tailwinds.

Top SBA lenders for pet care deals

The ten banks that have approved the most SBA 7(a) pet care loans FY2020-2025. Pulled directly from SBA FOIA data. Loan count alone doesn’t capture lender fit for your specific deal — volume leaders and specialist fit can differ.

Top 10 SBA pet care lenders by loan count Horizontal bar chart: The Huntington National Bank 468 loans; Live Oak Banking Company 156 loans; First Financial Bank 92 loans; TD Bank, National Association 82 loans; Newtek Bank, National Association 76 loans; Readycap Lending, LLC 76 loans; Manufacturers and Traders Trust Company 73 loans; Wells Fargo Bank National Association 70 loans; Northeast Bank 64 loans; First Bank of the Lake 62 loans. The Huntington National Bank 468 Live Oak Banking Company 156 First Financial Bank 92 TD Bank, N.A. 82 Newtek Bank, N.A. 76 Readycap Lending, LLC 76 Manufacturers and Traders Trust Company 73 Wells Fargo Bank National Association 70 Northeast Bank 64 First Bank of the Lake 62

Top 10 lenders account for approximately 42.5% of all pet care SBA 7(a) volume.

Where pet care SBA lending concentrates

The eight states leading in pet care SBA 7(a) approvals FY2020-2025. TX leads the next-largest state (FL) by roughly 1.22× on loan count; top 8 states account for roughly half of all national pet care SBA volume.

Top 8 states for SBA pet care lending Horizontal bar chart of the top 8 states by SBA pet care loan count: TX 255 loans (8.9%); FL 209 loans (7.3%); CA 181 loans (6.3%); OH 178 loans (6.2%); NY 155 loans (5.4%); NC 114 loans (4.0%); PA 111 loans (3.9%); NJ 108 loans (3.8%). Leading state highlighted in green. TX 255 • 8.9% FL 209 • 7.3% CA 181 • 6.3% OH 178 • 6.2% NY 155 • 5.4% NC 114 • 4.0% PA 111 • 3.9% NJ 108 • 3.8%

Related SBA guides

Adjacent SBA lending pages with shared underwriting mechanics or audience overlap for pet care borrowers.

Frequently Asked Questions

Can I get an SBA loan for a pet boarding, daycare, or grooming business?
Yes. Pet care is an active SBA 7(a) category — 2,865 loans approved FY2020-2025 covering boarding, grooming, daycare, and training businesses. Average pet care SBA loan was approximately $492,000. The industry's favorable charge-off profile (0.70%, roughly half the SBA average) makes specialist lenders competitive on pricing.
Is a franchise pet care business easier to finance with SBA?
Typically yes. Pet care is one of the most franchise-concentrated SBA categories at 27.5% franchise participation. Established franchise concepts listed in the SBA Franchise Directory benefit from brand-level underwriting shortcuts and close faster than independent startups. Franchise operations are particularly favored for first-time operators who benefit from the brand's operational playbook.
What's the SBA charge-off rate for pet care businesses?
Pet care SBA 7(a) charge-offs run at 0.70%, roughly half the all-industry SBA average of 1.36%. The favorable performance reflects non-discretionary pet spending patterns, franchise-industry structure that stabilizes operational quality, and recurring-service revenue patterns (daycare, grooming) that smooth cash flow.
How much can I borrow with an SBA loan for a pet care business?
SBA 7(a) Standard goes up to $5 million; SBA 504 adds real estate capacity. Single-facility pet care acquisitions commonly run $400K to $1.5M without real estate and $1M to $3M with real estate. Grooming-only operations and mobile services typically run smaller ($100K to $500K) and often fit SBA 7(a) Small Loan.
What's the difference between pet care SBA loans and veterinary SBA loans?
Pet care businesses (boarding, grooming, daycare, training) don't require veterinary licensure and operate economically distinct from veterinary practices. Veterinary practices have even stronger SBA performance (0.18% charge-off, +40% YoY) with higher-dollar deals averaging $1.2M. Some operations combine both — boarding facilities with medicated-boarding capability often maintain veterinary relationships. See our SBA veterinary practice guide for veterinary-side mechanics.
Should I buy the facility real estate for a pet care business?
When possible, yes — SBA 504 was built for facility-heavy industries. Pet care is particularly zoning-sensitive: noise ordinances, animal-housing regulations, and outdoor-run setbacks make pet care facilities hard to relocate. Owning the facility protects against zoning changes or landlord conflicts. SBA 504 provides fixed long-term rates on the real estate; 7(a) covers the business.
Is pet care SBA lending growing?
Yes. SBA 7(a) lending to pet care is up 11% year-over-year, reflecting broader pet-industry expansion: pet ownership grew through the pandemic, pet spending outpaced general consumer spending, and PE-backed consolidators actively acquire independent operations. Growth has been steadier than most consumer-services categories through the recent higher-rate cycle.

Get matched with pet care-experienced SBA lenders

Pet care SBA is a narrow specialty. The top ten lenders above handle a meaningful share of all pet care 7(a) volume — matching there vs. a generalist branch is the difference between a clean 60-day close and a stalled file. See the broader SBA loans hub or SBA acquisition mechanics.

Match with pet care SBA lenders →

MMM does not originate SBA loans. Applications are processed through SBA-authorized lenders. Statistics above are sourced from the SBA FOIA 7(a) dataset, fiscal years 2020 through December 2025.