21st Century Bank: SBA business acquisition lending record
21st Century Bank (home state MN) approved 63 SBA 7(a) loans to buy existing businesses since FY2018, totaling $54.2M. The median loan was $595,000. It ranks number 140 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $326,500 and $1,159,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (94% of loans). Loans appear in only 4 states, which points to a regional lender.
- Industry concentration. Hardware Merchant Wholesalers is 5% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 221 SBA 7(a) loans of any purpose since FY2020, totaling $91.5M. 95% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 5% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 2.0% charged off, 42% lower than the 3.5% national average.
21st Century Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $635K | $634,500 | |
| FY2019 | 18 | $16.8M | $525,500 | |
| FY2020 | 13 | $13.2M | $595,000 | |
| FY2021 | 17 | $11.4M | $557,500 | |
| FY2022 | 11 | $6.8M | $492,300 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $2.3M | $1,138,750 | |
| FY2025 | 1 | $3M | $3,000,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 49 21st Century Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 2.0% by loan count and 1.8% by dollars. 17 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so 21st Century Bank is 42% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hardware Merchant Wholesalers | 3 | 4.8% | $3.2M | |
| 2 | Landscaping Services | 3 | 4.8% | $2.4M | |
| 3 | General Automotive Repair | 3 | 4.8% | $1.7M | |
| 4 | Offices of Chiropractors | 3 | 4.8% | $425K | |
| 5 | Full-Service Restaurants | 2 | 3.2% | $1.8M | |
| 6 | All Other Professional, Scientific, and Technical Services | 2 | 3.2% | $1.5M | |
| 7 | Home Health Care Services | 2 | 3.2% | $1.3M | |
| 8 | All Other Specialty Trade Contractors | 2 | 3.2% | $1.1M | |
| 9 | Pet Care (except Veterinary) Services | 2 | 3.2% | $726K | |
| 10 | Wood Window and Door Manufacturing | 1 | 1.6% | $3M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | World Fuel Services | 1 | 1.6% | $945K | |
| 2 | The UPS Store | 1 | 1.6% | $237K | |
| 3 | Comfort Keepers | 1 | 1.6% | $135K |
Questions buyers ask
Does 21st Century Bank make SBA acquisition loans?
Yes. 21st Century Bank approved 63 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 140 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are 21st Century Bank's acquisition loans?
The median was $595,000, with the middle half between $326,500 and $1,159,500. The national median is $645,250, so this lender's typical loan is 8% lower than the national figure.
Which states does 21st Century Bank lend in?
Minnesota (59), Wisconsin (2), Iowa (1), Florida (1). Its loans appear in 4 states, so it is closer to a regional lender.
Which industries does 21st Century Bank finance?
Hardware Merchant Wholesalers (3), Landscaping Services (3), General Automotive Repair (3), Offices of Chiropractors (3), Full-Service Restaurants (2). The top industry is 5% of its acquisition loans.
How have 21st Century Bank's acquisition loans performed?
Of 49 loans approved FY2018 to FY2021: 2.0% charged off, 42% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
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Related
- Minnesota acquisitions
- Wisconsin acquisitions
- Iowa acquisitions
- Hardware Merchant Wholesalers
- Landscaping Services
- General Automotive Repair
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by 21st Century Bank.