Banc of California: SBA business acquisition lending record
Banc of California (home state CA) approved 132 SBA 7(a) loans to buy existing businesses since FY2018, totaling $163M. The median loan was $981,100. It ranks number 78 of 280 lenders by count and made 0.3% 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 $482,000 and $1,717,525. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (23% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 37% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 541 SBA 7(a) loans of any purpose since FY2020, totaling $770M. 96% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 45% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.5% charged off, 29% higher than the 3.5% national average.
Banc of California acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 17 | $14.3M | $460,000 | |
| FY2019 | 20 | $25.4M | $1,077,000 | |
| FY2020 | 23 | $27M | $806,000 | |
| FY2021 | 28 | $32.6M | $915,500 | |
| FY2022 | 12 | $14.9M | $1,070,500 | |
| FY2023 | 7 | $6.3M | $830,500 | |
| FY2024 | 7 | $11.6M | $1,652,000 | |
| FY2025 | 10 | $16.3M | $1,109,250 | |
| FY2026 | 8 | $14.9M | $1,512,000 |
How often do these acquisition loans fail?
Of the 88 Banc of California acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 4 have been charged off by the SBA, a rate of 4.5% by loan count and 3.0% by dollars. 44 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 Banc of California is 29% 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 31 | 23.5% | $37.7M | |
| 2 | Texas | 7 | 5.3% | $14.5M | |
| 3 | New York | 7 | 5.3% | $10.8M | |
| 4 | Georgia | 6 | 4.5% | $9.6M | |
| 5 | Florida | 6 | 4.5% | $8.3M | |
| 6 | Ohio | 6 | 4.5% | $3.9M | |
| 7 | Pennsylvania | 5 | 3.8% | $7M | |
| 8 | North Carolina | 5 | 3.8% | $5.1M | |
| 9 | Colorado | 5 | 3.8% | $5M | |
| 10 | New Jersey | 5 | 3.8% | $4.7M | |
| 11 | Arizona | 5 | 3.8% | $3.1M | |
| 12 | Michigan | 4 | 3.0% | $7M | |
| 13 | Louisiana | 4 | 3.0% | $6.9M | |
| 14 | Maryland | 3 | 2.3% | $7.3M | |
| 15 | Illinois | 3 | 2.3% | $2.6M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 49 | 37.1% | $50.3M | |
| 2 | Veterinary Services | 8 | 6.1% | $9.2M | |
| 3 | Insurance Agencies and Brokerages | 8 | 6.1% | $5.9M | |
| 4 | Full-Service Restaurants | 5 | 3.8% | $7.5M | |
| 5 | Bed-and-Breakfast Inns | 4 | 3.0% | $5.2M | |
| 6 | General Automotive Repair | 4 | 3.0% | $4.8M | |
| 7 | Home Health Care Services | 4 | 3.0% | $3M | |
| 8 | Pet Care (except Veterinary) Services | 3 | 2.3% | $3.3M | |
| 9 | Offices of Certified Public Accountants | 3 | 2.3% | $2.6M | |
| 10 | Sign Manufacturing | 2 | 1.5% | $5.3M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Domino's Pizza | 37 | 28.0% | $36.3M | |
| 2 | Zaxby's | 4 | 3.0% | $7.3M | |
| 3 | Little Caesars | 3 | 2.3% | $3.2M | |
| 4 | Dogtopia | 2 | 1.5% | $2.3M | |
| 5 | Ace Hardware | 1 | 0.8% | $4.8M | |
| 6 | Polaris | 1 | 0.8% | $3.2M | |
| 7 | The Goddard School | 1 | 0.8% | $2.8M | |
| 8 | Home Helpers Home Care | 1 | 0.8% | $2.2M | |
| 9 | Golden Chick | 1 | 0.8% | $1.7M | |
| 10 | Budget Blinds | 1 | 0.8% | $1.3M |
Questions buyers ask
Does Banc of California make SBA acquisition loans?
Yes. Banc of California approved 132 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 78 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 Banc of California's acquisition loans?
The median was $981,100, with the middle half between $482,000 and $1,717,525. The national median is $645,250, so this lender's typical loan is 52% higher than the national figure.
Which states does Banc of California lend in?
California (31), Texas (7), New York (7), Georgia (6), Florida (6), Ohio (6). Its loans span at least 15 states.
Which industries does Banc of California finance?
Limited-Service Restaurants (49), Veterinary Services (8), Insurance Agencies and Brokerages (8), Full-Service Restaurants (5), Bed-and-Breakfast Inns (4). The top industry is 37% of its acquisition loans.
How have Banc of California's acquisition loans performed?
Of 88 loans approved FY2018 to FY2021: 4.5% charged off, 29% 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
- California acquisitions
- Texas acquisitions
- New York acquisitions
- Limited-Service Restaurants
- Veterinary Services
- Insurance Agencies and Brokerages
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Banc of California.