Bank of America, National Association: SBA business acquisition lending record
Bank of America, National Association (home state NC) approved 183 SBA 7(a) loans to buy existing businesses since FY2018, totaling $215M. The median loan was $739,000. It ranks number 51 of 280 lenders by count and made 0.4% 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 $436,950 and $1,535,250. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (16% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Child Care Services is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 3,799 SBA 7(a) loans of any purpose since FY2020, totaling $2.0B. 99% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 33% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 0.9% charged off, 76% lower than the 3.5% national average.
Bank of America, National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 34 | $32.3M | $596,600 | |
| FY2019 | 58 | $56.3M | $672,950 | |
| FY2020 | 24 | $22.6M | $676,750 | |
| FY2021 | 2 | $4.2M | $2,077,000 | |
| FY2022 | 2 | $356K | $177,900 | |
| FY2023 | 5 | $10.7M | $1,345,400 | |
| FY2024 | 4 | $10.2M | $2,692,100 | |
| FY2025 | 24 | $25.8M | $714,000 | |
| FY2026 | 30 | $53M | $1,433,400 |
How often do these acquisition loans fail?
Of the 118 Bank of America, 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 0.9% by loan count and 0.1% by dollars. 65 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 Bank of America, National Association is 76% 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
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 29 | 15.8% | $26.9M | |
| 2 | Florida | 20 | 10.9% | $23.8M | |
| 3 | Texas | 17 | 9.3% | $16M | |
| 4 | Washington | 11 | 6.0% | $10M | |
| 5 | New Jersey | 9 | 4.9% | $12.2M | |
| 6 | North Carolina | 9 | 4.9% | $6.8M | |
| 7 | Illinois | 8 | 4.4% | $6.2M | |
| 8 | Arizona | 8 | 4.4% | $5.1M | |
| 9 | Colorado | 7 | 3.8% | $16.8M | |
| 10 | Massachusetts | 7 | 3.8% | $11.1M | |
| 11 | New York | 7 | 3.8% | $9.5M | |
| 12 | Missouri | 6 | 3.3% | $7.5M | |
| 13 | South Carolina | 4 | 2.2% | $10.7M | |
| 14 | Michigan | 4 | 2.2% | $5.4M | |
| 15 | Utah | 3 | 1.6% | $6.8M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Child Care Services | 15 | 8.2% | $29M | |
| 2 | Beauty Salons | 13 | 7.1% | $11.2M | |
| 3 | Private Mail Centers | 10 | 5.5% | $7.6M | |
| 4 | Full-Service Restaurants | 10 | 5.5% | $6.3M | |
| 5 | Limited-Service Restaurants | 8 | 4.4% | $4M | |
| 6 | Offices of Certified Public Accountants | 7 | 3.8% | $5.9M | |
| 7 | Fitness and Recreational Sports Centers | 5 | 2.7% | $2.9M | |
| 8 | General Automotive Repair | 5 | 2.7% | $2.3M | |
| 9 | Plumbing, Heating, and Air-Conditioning Contractors | 4 | 2.2% | $5.7M | |
| 10 | Insurance Agencies and Brokerages | 4 | 2.2% | $3.9M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Goddard School | 10 | 5.5% | $21.6M | |
| 2 | Supercuts | 10 | 5.5% | $9.8M | |
| 3 | The UPS Store | 10 | 5.5% | $7.6M | |
| 4 | Jet's Pizza | 3 | 1.6% | $1.7M | |
| 5 | Orange Theory Fitness | 3 | 1.6% | $1.7M | |
| 6 | FASTSIGNS | 2 | 1.1% | $1.1M | |
| 7 | Christian Brothers Automotive | 2 | 1.1% | $856K | |
| 8 | Dairy Queen | 2 | 1.1% | $735K | |
| 9 | Primrose Schools | 1 | 0.5% | $5M | |
| 10 | Mathnasium | 1 | 0.5% | $3.8M |
Questions buyers ask
Does Bank of America, National Association make SBA acquisition loans?
Yes. Bank of America, National Association approved 183 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 51 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 Bank of America, National Association's acquisition loans?
The median was $739,000, with the middle half between $436,950 and $1,535,250. The national median is $645,250, so this lender's typical loan is 15% higher than the national figure.
Which states does Bank of America, National Association lend in?
California (29), Florida (20), Texas (17), Washington (11), New Jersey (9), North Carolina (9). Its loans span at least 15 states.
Which industries does Bank of America, National Association finance?
Child Care Services (15), Beauty Salons (13), Private Mail Centers (10), Full-Service Restaurants (10), Limited-Service Restaurants (8). The top industry is 8% of its acquisition loans.
How have Bank of America, National Association's acquisition loans performed?
Of 118 loans approved FY2018 to FY2021: 0.9% charged off, 76% 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
- California acquisitions
- Florida acquisitions
- Texas acquisitions
- Child Care Services
- Beauty Salons
- Private Mail Centers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Bank of America, National Association.