Korean Banks Lead US SBA Lending in Q1 2026
Korean financial institutions demonstrated strong performance in Compact Business Administration (SBA) lending during the first quarter of fiscal year 2026, totaling $388.85 million across 298 loans. This positions them as leaders in SBA lending within the Asian banking sector in the United States.
SBA Loan Performance: Q1 2026
According to data released by the Small Business Administration on February 13, 2026, thirteen Korean financial institutions operating in the U.S. Facilitated $388,849,100 in SBA 7(a) loans during the October-December 2025 period. This represents a 12.4% increase compared to the $346,081,900 lent in the same quarter of fiscal year 2025.
Loan Volume and Average Size
While the total number of loans decreased by 11.8%—from 338 in Q1 2025 to 298 in Q1 2026—the average loan amount increased significantly. The average loan size in Q1 2026 was $1,300,486, a 27.0% rise from $1,023,911 in the prior-year period. This increase is attributed to the growth in size and revenue of Korean-owned businesses.
Top Performing Banks
US Metro Bank and Bank of Hope secured the top two positions among Korean banks. US Metro Bank led with $105.64 million in loans, while Bank of Hope followed with $81.16 million. Metro City Bank and Hanmi Bank ranked third and fourth, with $47.72 million and $33.38 million, respectively. CBB Bank, Centerstone SBA Lending, and PCB Bank also demonstrated strong performance.
In terms of the number of loans issued, Bank of Hope led with 82, followed by US Metro Bank (50), Hanmi Bank (49), and Metro City Bank (23).
SBA Loan Advantages and Future Considerations
Korean financial institutions continue to prioritize SBA loans due to the SBA’s guarantee of up to 75% of the loan amount, which mitigates the risk of losses from non-performing loans. SBA loans are also a key revenue source, as portfolios can be sold between financial institutions.
However, a potential future variable is the Small Business Administration’s decision to suspend SBA loans to non-citizens starting in March 2026.
Korean Banks in the SBA Landscape
Eight Korean financial institutions were included in the top 100 SBA lenders nationwide, out of a total of 677 financial institutions. This underscores the continued prominence of Korean banks in the US SBA lending sector.