M&T Bank SBA approvals rise 10% as guarantees support equipment financing

M&T Bank‘s Small Business Administration 7(a) loan approvals climbed in fiscal 2026 as the bank used government-backed financing to support equipment purchases by new and expanding businesses. 

SBA guarantees allow the Buffalo, N.Y.-based bank to consider equipment financing when collateral is insufficient or cash flow from a planned expansion has not yet materialized, Christina Smaczniak, director of government lending and small business lending experience, told Equipment Finance News. 

“We don’t underwrite the loan differently, but what we might see in a credit analysis is a collateral shortfall,” she said. 

M&T approved $326.4 million in SBA 7(a) loans during the fiscal year ended Sept. 30, up 11.1% from fiscal 2025, according to an Oct. 14 release.  

The average approved amount increased 0.8% YoY to approximately $109,700, based on the bank’s reported loan counts and dollar volume, while the overall number of approvals rose 10.1% YoY to a record 2,975. 

M&T climbed to fifth among SBA 7(a) lenders nationwide from seventh the year prior and ranked first in 10 SBA districts across its footprint, according to the release. 

Longer maturities support equipment purchases 

Most equipment financing needs supported through M&T’s SBA programs involve new businesses or companies looking to expand operations, Smaczniak said.  

Those businesses might need additional machinery to increase production before they can demonstrate expected revenue, she said. 

SBA guarantees help mitigate risks associated with unproven expansion projects, while longer repayment periods can improve a borrower’s ability to meet cash flow requirements, Smaczniak said. 

“By stretching the maturity, it can often improve the cash flow and allow them to hurdle our cash flow requirements in order to qualify for a loan,” she said. 

The longer maturities are contingent on the equipment’s useful life and can reduce monthly payments compared with conventional financing structures, Smaczniak said. 

Rather than directing customers toward SBA loans, M&T evaluates borrowers’ financial profiles, repayment capacity and financing purposes to determine whether conventional credit is appropriate or a government guarantee could reduce identified risks, she said. 

Small-business investment remains cautious 

Small-business capital spending softened in September, according to a National Federation of Independent Business‘ (NFIB) report released Oct. 13.  

Fifty-one percent of surveyed businesses reported capital expenditures in the previous six months, down 2 percentage points month over month. Among those making investments, 32% purchased new equipment, down 4 points MoM. 

Meanwhile, 22% of surveyed businesses planned capital expenditures over the next six months, also down 2 percentage points MoM, according to the NFIB report. 

Economic uncertainty, tariffs and rising equipment prices have complicated financing discussions, requiring businesses to evaluate investment timing, costs and expected returns, Smaczniak said. 

She said despite these challenges, M&T remains optimistic about SBA lending opportunities in fiscal 2027, including equipment purchases, business acquisitions and expansion projects. 

Equipment dealers, accountants, attorneys and other referral partners play an important role in connecting business owners with financing options, Smaczniak said. 

“Those relationships help entrepreneurs better understand their options and access to capital and they are our connection to the communities that we serve,” she said. 

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