Scrutiny against loss

The categories drawing the most scrutiny are not the ones producing the most loss

Loan volume against expected loss, for special-purpose categories where both are computable.

Special-purpose classification measures how hard an asset is to sell after a default. Expected loss measures how often defaults happen and how much is written off. They are different questions, and hotels sit at the safe end of the second while carrying the full weight of the first.

1.12%expected loss on hotel lending — lowest of any category

5.77%expected loss on restaurant lending

16.9%of SBA lending classified special purpose

Source: SBA SOP 50 10 8 (effective 1 June 2025) and analysis of SBA 7(a) and 504 FOIA loan-level data (as of 31 March 2026), FY2021–FY2025 originations. Published by sba-feasibility-study.com.