BMO Bank National Association: SBA business acquisition lending record
BMO Bank National Association (home state IL) approved 262 SBA 7(a) loans to buy existing businesses since FY2018, totaling $222M. The median loan was $582,500. It ranks number 37 of 280 lenders by count and made 0.5% 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 $350,000 and $1,049,575. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (42% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,159 SBA 7(a) loans of any purpose since FY2020, totaling $946M. 97% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 13% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 2.0% charged off, 44% lower than the 3.5% national average.
BMO Bank National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 27 | $26.8M | $579,600 | |
| FY2019 | 48 | $34.5M | $598,850 | |
| FY2020 | 34 | $30.1M | $737,700 | |
| FY2021 | 43 | $43.1M | $559,900 | |
| FY2022 | 42 | $34.8M | $522,300 | |
| FY2023 | 57 | $43.7M | $500,000 | |
| FY2024 | 5 | $6.7M | $985,000 | |
| FY2025 | 4 | $1.8M | $458,600 | |
| FY2026 | 2 | $523K | $261,600 |
How often do these acquisition loans fail?
Of the 152 BMO Bank National Association acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 2.0% by loan count and 0.4% by dollars. 63 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 BMO Bank National Association is 44% 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 | 109 | 41.6% | $94.3M | |
| 2 | Colorado | 42 | 16.0% | $34.5M | |
| 3 | Arizona | 18 | 6.9% | $18.1M | |
| 4 | Illinois | 18 | 6.9% | $13.6M | |
| 5 | Wisconsin | 16 | 6.1% | $14.4M | |
| 6 | Utah | 13 | 5.0% | $10.2M | |
| 7 | New Mexico | 10 | 3.8% | $10.3M | |
| 8 | Oregon | 7 | 2.7% | $3.8M | |
| 9 | Nevada | 5 | 1.9% | $4.7M | |
| 10 | Washington | 4 | 1.5% | $4.3M | |
| 11 | Minnesota | 4 | 1.5% | $2.4M | |
| 12 | Oklahoma | 3 | 1.1% | $1.4M | |
| 13 | Idaho | 2 | 0.8% | $2.2M | |
| 14 | Kansas | 2 | 0.8% | $1.7M | |
| 15 | Indiana | 2 | 0.8% | $1.2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 20 | 7.6% | $16.5M | |
| 2 | Limited-Service Restaurants | 16 | 6.1% | $8.8M | |
| 3 | Offices of Certified Public Accountants | 10 | 3.8% | $6.1M | |
| 4 | General Automotive Repair | 9 | 3.4% | $6.7M | |
| 5 | All Other Specialty Trade Contractors | 9 | 3.4% | $4.6M | |
| 6 | Landscaping Services | 8 | 3.1% | $7.7M | |
| 7 | Child Care Services | 7 | 2.7% | $12.5M | |
| 8 | Tax Preparation Services | 7 | 2.7% | $3.1M | |
| 9 | Insurance Agencies and Brokerages | 5 | 1.9% | $6.1M | |
| 10 | Plumbing, Heating, and Air-Conditioning Contractors | 5 | 1.9% | $4.3M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 4 | 1.5% | $1.6M | |
| 2 | The UPS Store | 3 | 1.1% | $1M | |
| 3 | Primrose Schools | 2 | 0.8% | $7.5M | |
| 4 | Amada Senior Care | 1 | 0.4% | $1.6M | |
| 5 | Yogurtland | 1 | 0.4% | $1.1M | |
| 6 | Carpet One Floor & Home | 1 | 0.4% | $987K | |
| 7 | True Value | 1 | 0.4% | $720K | |
| 8 | TeamLogic IT | 1 | 0.4% | $627K | |
| 9 | Little Caesars | 1 | 0.4% | $610K | |
| 10 | Tire Pros | 1 | 0.4% | $435K |
Questions buyers ask
Does BMO Bank National Association make SBA acquisition loans?
Yes. BMO Bank National Association approved 262 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 37 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 BMO Bank National Association's acquisition loans?
The median was $582,500, with the middle half between $350,000 and $1,049,575. The national median is $645,250, so this lender's typical loan is 10% lower than the national figure.
Which states does BMO Bank National Association lend in?
California (109), Colorado (42), Arizona (18), Illinois (18), Wisconsin (16), Utah (13). Its loans span at least 15 states.
Which industries does BMO Bank National Association finance?
Full-Service Restaurants (20), Limited-Service Restaurants (16), Offices of Certified Public Accountants (10), General Automotive Repair (9), All Other Specialty Trade Contractors (9). The top industry is 8% of its acquisition loans.
How have BMO Bank National Association's acquisition loans performed?
Of 152 loans approved FY2018 to FY2021: 2.0% charged off, 44% 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
- Colorado acquisitions
- Arizona acquisitions
- Full-Service Restaurants
- Limited-Service Restaurants
- Offices of Certified Public Accountants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by BMO Bank National Association.