Arizona Financial Credit Union: SBA business acquisition lending record
Arizona Financial Credit Union (home state AZ) approved 34 SBA 7(a) loans to buy existing businesses since FY2018, totaling $29.1M. The median loan was $462,500. It ranks number 226 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $306,000 and $1,244,150. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Arizona is the largest state (94% of loans). Loans appear in only 3 states, which points to a regional lender.
- Industry concentration. Assisted Living Facilities for the Elderly is 9% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 139 SBA 7(a) loans of any purpose since FY2020, totaling $88.6M. 97% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 18% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 3.2% charged off, 8% lower than the 3.5% national average.
Arizona Financial Credit Union acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $8.2M | $455,000 | |
| FY2019 | 14 | $12.4M | $422,850 | |
| FY2020 | 1 | $104K | $103,600 | |
| FY2021 | 7 | $6.3M | $712,500 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 3 | $2.1M | $799,800 |
How often do these acquisition loans fail?
Of the 31 Arizona Financial Credit Union 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 3.2% by loan count and 0.3% 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 Arizona Financial Credit Union is 8% 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Arizona | 32 | 94.1% | $25M | |
| 2 | Florida | 1 | 2.9% | $2.3M | |
| 3 | California | 1 | 2.9% | $1.8M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Assisted Living Facilities for the Elderly | 3 | 8.8% | $2.7M | |
| 2 | All Other Miscellaneous Retailers | 3 | 8.8% | $1M | |
| 3 | Other Services to Buildings and Dwellings | 2 | 5.9% | $2M | |
| 4 | Home Health Care Services | 2 | 5.9% | $1.4M | |
| 5 | Other Building Equipment Contractors | 1 | 2.9% | $3.9M | |
| 6 | Outpatient Mental Health and Substance Abuse Centers | 1 | 2.9% | $2.3M | |
| 7 | All Other Miscellaneous Fabricated Metal Product Manufacturing | 1 | 2.9% | $1.9M | |
| 8 | Hotels (except Casino Hotels) and Motels | 1 | 2.9% | $1.8M | |
| 9 | Full-Service Restaurants | 1 | 2.9% | $1.8M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motel 6 | 1 | 2.9% | $1.8M | |
| 2 | SYNERGY HomeCare | 1 | 2.9% | $973K | |
| 3 | Touching Hearts at Home | 1 | 2.9% | $455K | |
| 4 | Batteries Plus | 1 | 2.9% | $363K | |
| 5 | PacWest Energy (Shell) | 1 | 2.9% | $300K |
Questions buyers ask
Does Arizona Financial Credit Union make SBA acquisition loans?
Yes. Arizona Financial Credit Union approved 34 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 226 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 Arizona Financial Credit Union's acquisition loans?
The median was $462,500, with the middle half between $306,000 and $1,244,150. The national median is $645,250, so this lender's typical loan is 28% lower than the national figure.
Which states does Arizona Financial Credit Union lend in?
Arizona (32), Florida (1), California (1). Its loans appear in 3 states, so it is closer to a regional lender.
Which industries does Arizona Financial Credit Union finance?
Assisted Living Facilities for the Elderly (3), All Other Miscellaneous Retailers (3), Other Services to Buildings and Dwellings (2), Home Health Care Services (2), Other Building Equipment Contractors (1). The top industry is 9% of its acquisition loans.
How have Arizona Financial Credit Union's acquisition loans performed?
Of 31 loans approved FY2018 to FY2021: 3.2% charged off, 8% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
The purchase agreement decides what you bought, not the loan approval.
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Related
- Arizona acquisitions
- Florida acquisitions
- California acquisitions
- Assisted Living Facilities for the Elderly
- All Other Miscellaneous Retailers
- Other Services to Buildings and Dwellings
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Arizona Financial Credit Union.