SBA Acquisition Data

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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acquisition loans
63
FY2018 to FY2026
total approved
$54.2M
gross loan amount
median loan
$595,000
middle half: $327K to $1.2M
avg initial rate
6.00%
at approval, mixed years
median term
10 years
120 months
charge-off rate
2.0%
FY2018 to FY2021 cohort, 49 loans

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

21st Century Bank SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian 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%.

Small sample: 49 seasoned loans. A single additional charge-off would move this rate by about 2.0 percentage points. Read it as a direction, not a precise figure.

"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

State ranked by SBA acquisition loans
#StateLoansShareDollars
1Minnesota59
93.7%$50.4M
2Wisconsin2
3.2%$2.9M
3Iowa1
1.6%$763K
4Florida1
1.6%$221K

Industries financed

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SBA-financed deals. All 50 states.

Franchise brands financed

Franchise ranked by SBA acquisition loans
#FranchiseLoansShareDollars
1World Fuel Services1
1.6%$945K
2The UPS Store1
1.6%$237K
3Comfort Keepers1
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

Figures are aggregates of public SBA data. This page is not provided or endorsed by 21st Century Bank.