Beauty supply store loans
Cosmetics, Beauty Supplies, and Perfume Stores · NAICS 456120 · Program that usually fits: 7(a)
Beauty supply and cosmetics store loans are mostly about inventory. A typical store carries thousands of items, from hair care and wigs to skin care, fragrance and salon tools, and the opening order alone can be a large share of the startup budget. Lenders look at inventory turnover and gross margin, the store's location and lease, and how it competes with big-box and online sellers. Strong vendor relationships and a loyal local customer base help a great deal.
Who qualifies
Independent beauty supply stores, cosmetics and fragrance shops, and stores selling to both consumers and licensed salon professionals. Lenders want retail experience, ideally in beauty, a lease that covers the loan term, and supplier accounts or distributor terms in place. Start-ups need a detailed opening inventory list and pricing plan. Franchises of beauty retail brands are eligible when the brand meets SBA franchise rules.
Which SBA program fits
7(a) for opening or buying a store
Covers opening inventory, build-out, fixtures, a point-of-sale system and working capital, or the purchase of an existing store, on a 10-year term. Real estate can be included on a longer term.
Express for restocking and remodels
SBA Express loans under $500,000 fund inventory expansion, a remodel or a second location with a faster decision. Rates run slightly higher than standard 7(a), with less paperwork.
Microloans for small shops
SBA microlenders provide up to $50,000 for small cosmetics or fragrance shops and kiosks that need a modest first order. Many microlenders also offer retail coaching.
What borrowers use the money for
- Opening inventory of hair care, wigs, cosmetics and fragrance
- Store build-out, shelving, display cases and lighting
- Buying an existing beauty supply store
- Point-of-sale and inventory management systems
- Working capital to take advantage of vendor bulk pricing
Typical loan amounts, down payment and terms
Most beauty supply store loans range from $100,000 to $500,000. A smaller store may need $150,000 to $300,000 to open, much of it inventory, while larger stores with wig departments can cost more. Terms run up to 10 years, or 25 years if you buy the building. Expect at least 10% equity, and 15% to 20% for a new store.
What lenders look at for a beauty supply store
Inventory management is the core question. Lenders review turnover, shrinkage, and how much stock is slow-moving or expired, since cosmetics and hair care lose value. They look at gross margin by category and how the store competes on price with online sellers. Location matters: traffic, nearby salons and barbershops, and competing stores. The lease term and rent as a share of sales are checked, and so is the owner's buying experience and vendor credit.
Example: a $250,000 loan
At today's maximum variable 7(a) rate of 13.00% over 10 years, the payment would be about $3,733 a month. Most well-qualified borrowers get a lower rate. Try your own numbers.
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Answer four questions and see SBA lenders that fit your state, loan size and industry, with your maximum rate. Compare at least two quotes before you sign. Rates move monthly: check current SBA loan rates and the 504 rate.
Today's rate caps
These are the SBA's maximum 7(a) rates with prime at 7.00%. See current SBA loan rates and SBA 504 rates for the full picture.
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Related industries and lenders
SBA lenders active nationwide
Questions about beauty supply stores loans
Can I get an SBA loan to open a beauty supply store?
Yes. Beauty supply start-ups qualify for 7(a) loans and microloans. Lenders want retail experience, a signed lease or letter of intent, a detailed opening inventory list with supplier quotes, and usually 15% to 20% equity.
How much does it cost to open a beauty supply store?
Many independent stores need $150,000 to $400,000 including inventory, build-out, fixtures and working capital. Inventory is often the largest single cost. Stores with large wig and hair departments or bigger footprints cost more. Lenders want a detailed inventory budget.
Can an SBA loan be used for inventory?
Yes. Inventory is an eligible use of 7(a), Express and microloan funds. Lenders usually finance the opening order within the overall project and may set up a working capital line for restocking. They value inventory at a discount when counting collateral.
What are SBA rates for a beauty supply store loan?
With prime at 7.00%, a 7(a) loan of $50,000 or less is capped at 13.50%, $50,001 to $250,000 at 13.00%, and $250,001 to $350,000 at 11.50%. Express loans can price slightly higher than standard 7(a).
Can I buy an existing beauty supply store with an SBA loan?
Yes. A 7(a) loan can fund the price, inventory at a counted value, fixtures and working capital. Lenders review the seller's tax returns, point-of-sale reports and lease terms, and want an inventory count at closing.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); November 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.