Bank of Hope: SBA business acquisition lending record
Bank of Hope (home state CA) approved 479 SBA 7(a) loans to buy existing businesses since FY2018, totaling $394M. The median loan was $250,000. It ranks number 14 of 280 lenders by count and made 1.0% 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 $118,000 and $784,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (54% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 21% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,935 SBA 7(a) loans of any purpose since FY2020, totaling $1.7B. 53% 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: 5.3% charged off, 51% higher than the 3.5% national average.
Bank of Hope acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 63 | $32.9M | $150,000 | |
| FY2019 | 100 | $38.1M | $188,250 | |
| FY2020 | 60 | $27.8M | $200,000 | |
| FY2021 | 78 | $63.8M | $230,000 | |
| FY2022 | 61 | $61.3M | $496,000 | |
| FY2023 | 41 | $54.6M | $552,300 | |
| FY2024 | 27 | $25.3M | $331,000 | |
| FY2025 | 24 | $38.6M | $636,500 | |
| FY2026 | 25 | $52M | $390,000 |
How often do these acquisition loans fail?
Of the 301 Bank of Hope acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 16 have been charged off by the SBA, a rate of 5.3% by loan count and 1.8% by dollars. 218 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 Hope is 51% 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 | 261 | 54.5% | $118M | |
| 2 | Texas | 84 | 17.5% | $98M | |
| 3 | Washington | 39 | 8.1% | $64.8M | |
| 4 | Colorado | 26 | 5.4% | $18.8M | |
| 5 | Georgia | 16 | 3.3% | $30.6M | |
| 6 | New York | 14 | 2.9% | $6.9M | |
| 7 | New Jersey | 4 | 0.8% | $2M | |
| 8 | Virginia | 4 | 0.8% | $516K | |
| 9 | Ohio | 3 | 0.6% | $4.4M | |
| 10 | Illinois | 3 | 0.6% | $235K | |
| 11 | Arizona | 2 | 0.4% | $9.9M | |
| 12 | Tennessee | 2 | 0.4% | $8.7M | |
| 13 | South Carolina | 2 | 0.4% | $8M | |
| 14 | Alabama | 2 | 0.4% | $5.5M | |
| 15 | North Dakota | 2 | 0.4% | $5.3M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 102 | 21.3% | $40.5M | |
| 2 | Limited-Service Restaurants | 68 | 14.2% | $13.8M | |
| 3 | Hotels (except Casino Hotels) and Motels | 56 | 11.7% | $169M | |
| 4 | Beer, Wine, and Liquor Retailers | 49 | 10.2% | $26.4M | |
| 5 | Gasoline Stations with Convenience Stores | 24 | 5.0% | $68.4M | |
| 6 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 23 | 4.8% | $12.3M | |
| 7 | Snack and Nonalcoholic Beverage Bars | 23 | 4.8% | $5M | |
| 8 | Drycleaning and Laundry Services (except Coin-Operated) | 19 | 4.0% | $4.1M | |
| 9 | Coin-Operated Laundries and Drycleaners | 18 | 3.8% | $11.7M | |
| 10 | Convenience Retailers | 12 | 2.5% | $4.3M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 4 | 0.8% | $837K | |
| 2 | Baskin-Robbins | 4 | 0.8% | $803K | |
| 3 | Papa John's | 4 | 0.8% | $365K | |
| 4 | La Quinta | 3 | 0.6% | $14.4M | |
| 5 | Comfort Suites | 3 | 0.6% | $14.2M | |
| 6 | Quality Inn | 3 | 0.6% | $12.2M | |
| 7 | Days Inn | 3 | 0.6% | $9.5M | |
| 8 | Subway | 3 | 0.6% | $578K | |
| 9 | Holiday Inn Express | 2 | 0.4% | $10M | |
| 10 | Extended Stay America Suites | 2 | 0.4% | $7.5M |
Questions buyers ask
Does Bank of Hope make SBA acquisition loans?
Yes. Bank of Hope approved 479 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 14 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 Hope's acquisition loans?
The median was $250,000, with the middle half between $118,000 and $784,000. The national median is $645,250, so this lender's typical loan is 61% lower than the national figure.
Which states does Bank of Hope lend in?
California (261), Texas (84), Washington (39), Colorado (26), Georgia (16), New York (14). Its loans span at least 15 states.
Which industries does Bank of Hope finance?
Full-Service Restaurants (102), Limited-Service Restaurants (68), Hotels (except Casino Hotels) and Motels (56), Beer, Wine, and Liquor Retailers (49), Gasoline Stations with Convenience Stores (24). The top industry is 21% of its acquisition loans.
How have Bank of Hope's acquisition loans performed?
Of 301 loans approved FY2018 to FY2021: 5.3% charged off, 51% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
SBA 7(a) acquisitions, nationwide. Free consultation.
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Related
- California acquisitions
- Texas acquisitions
- Washington acquisitions
- Full-Service Restaurants
- Limited-Service Restaurants
- Hotels (except Casino Hotels) and Motels
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Bank of Hope.