Alerus Financial, National Association: SBA business acquisition lending record
Alerus Financial, National Association (home state ND) approved 66 SBA 7(a) loans to buy existing businesses since FY2018, totaling $78.1M. The median loan was $896,500. It ranks number 133 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $372,625 and $1,243,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (39% of loans). Loans appear in only 8 states, which points to a regional lender.
- Industry concentration. Gasoline Stations with Convenience Stores is 9% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 222 SBA 7(a) loans of any purpose since FY2020, totaling $182M. 91% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 15% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 3.9% charged off, 9% higher than the 3.5% national average.
Alerus Financial, National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $569K | $134,550 | |
| FY2019 | 9 | $8.8M | $847,000 | |
| FY2020 | 7 | $5.1M | $780,000 | |
| FY2021 | 6 | $6.8M | $869,300 | |
| FY2022 | 7 | $9.8M | $1,090,200 | |
| FY2023 | 7 | $7.5M | $500,000 | |
| FY2024 | 9 | $11M | $982,500 | |
| FY2025 | 10 | $19.7M | $1,109,050 | |
| FY2026 | 7 | $8.7M | $770,000 |
How often do these acquisition loans fail?
Of the 26 Alerus Financial, National Association 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 3.9% by loan count and 1.7% by dollars. 13 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 Alerus Financial, National Association is 9% higher 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 26 | 39.4% | $24.8M | |
| 2 | Arizona | 21 | 31.8% | $22.8M | |
| 3 | North Dakota | 11 | 16.7% | $23.5M | |
| 4 | Wisconsin | 4 | 6.1% | $4.8M | |
| 5 | Colorado | 1 | 1.5% | $893K | |
| 6 | California | 1 | 1.5% | $770K | |
| 7 | Tennessee | 1 | 1.5% | $325K | |
| 8 | Iowa | 1 | 1.5% | $241K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Gasoline Stations with Convenience Stores | 6 | 9.1% | $6.7M | |
| 2 | Limited-Service Restaurants | 4 | 6.1% | $6.3M | |
| 3 | Assisted Living Facilities for the Elderly | 3 | 4.5% | $4.7M | |
| 4 | All Other Professional, Scientific, and Technical Services | 3 | 4.5% | $3.9M | |
| 5 | Beer, Wine, and Liquor Retailers | 2 | 3.0% | $4.7M | |
| 6 | Golf Courses and Country Clubs | 2 | 3.0% | $3M | |
| 7 | Other Chemical and Allied Products Merchant Wholesalers | 2 | 3.0% | $2.1M | |
| 8 | Electrical Contractors and Other Wiring Installation Contractors | 2 | 3.0% | $1.9M | |
| 9 | Convenience Retailers | 2 | 3.0% | $1.5M | |
| 10 | Snack and Nonalcoholic Beverage Bars | 2 | 3.0% | $1.1M |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Culver's | 2 | 3.0% | $5M | |
| 2 | World Fuel Services | 1 | 1.5% | $1.5M | |
| 3 | Hardware Hank | 1 | 1.5% | $1.3M | |
| 4 | FirstLight HomeCare | 1 | 1.5% | $201K |
Questions buyers ask
Does Alerus Financial, National Association make SBA acquisition loans?
Yes. Alerus Financial, National Association approved 66 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 133 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 Alerus Financial, National Association's acquisition loans?
The median was $896,500, with the middle half between $372,625 and $1,243,750. The national median is $645,250, so this lender's typical loan is 39% higher than the national figure.
Which states does Alerus Financial, National Association lend in?
Minnesota (26), Arizona (21), North Dakota (11), Wisconsin (4), Colorado (1), California (1). Its loans appear in 8 states, so it is closer to a regional lender.
Which industries does Alerus Financial, National Association finance?
Gasoline Stations with Convenience Stores (6), Limited-Service Restaurants (4), Assisted Living Facilities for the Elderly (3), All Other Professional, Scientific, and Technical Services (3), Beer, Wine, and Liquor Retailers (2). The top industry is 9% of its acquisition loans.
How have Alerus Financial, National Association's acquisition loans performed?
Of 26 loans approved FY2018 to FY2021: 3.9% charged off, 9% higher 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
- Arizona acquisitions
- North Dakota acquisitions
- Gasoline Stations with Convenience Stores
- Limited-Service Restaurants
- Assisted Living Facilities for the Elderly
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Alerus Financial, National Association.