Busey Bank: SBA business acquisition lending record
Busey Bank (home state IL) approved 138 SBA 7(a) loans to buy existing businesses since FY2018, totaling $161M. The median loan was $885,950. It ranks number 72 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 $502,000 and $1,482,200. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Colorado is the largest state (27% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 7% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 436 SBA 7(a) loans of any purpose since FY2020, totaling $464M. 80% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 9% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.7% charged off, 52% lower than the 3.5% national average.
Busey Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 13 | $18.4M | $1,037,400 | |
| FY2019 | 18 | $15.2M | $624,400 | |
| FY2020 | 11 | $11.3M | $879,200 | |
| FY2021 | 17 | $27.9M | $1,358,000 | |
| FY2022 | 23 | $24.5M | $680,000 | |
| FY2023 | 23 | $23.5M | $730,800 | |
| FY2024 | 7 | $11.1M | $2,000,000 | |
| FY2025 | 16 | $19.8M | $870,450 | |
| FY2026 | 10 | $9.7M | $857,000 |
How often do these acquisition loans fail?
Of the 59 Busey Bank 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 1.7% by loan count and 0.8% by dollars. 34 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 Busey Bank is 52% 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 | Colorado | 37 | 26.8% | $42.3M | |
| 2 | Illinois | 35 | 25.4% | $46.3M | |
| 3 | Missouri | 21 | 15.2% | $22.2M | |
| 4 | Florida | 13 | 9.4% | $15M | |
| 5 | Kansas | 10 | 7.2% | $10.3M | |
| 6 | Arizona | 6 | 4.3% | $4.1M | |
| 7 | Indiana | 5 | 3.6% | $2.9M | |
| 8 | California | 2 | 1.4% | $4M | |
| 9 | Georgia | 1 | 0.7% | $5M | |
| 10 | Nebraska | 1 | 0.7% | $2.1M | |
| 11 | New Hampshire | 1 | 0.7% | $1.6M | |
| 12 | Kentucky | 1 | 0.7% | $1.4M | |
| 13 | Texas | 1 | 0.7% | $1.3M | |
| 14 | Minnesota | 1 | 0.7% | $989K | |
| 15 | Iowa | 1 | 0.7% | $879K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 9 | 6.5% | $9.6M | |
| 2 | All Other Specialty Trade Contractors | 3 | 2.2% | $6.3M | |
| 3 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | 2.2% | $4.9M | |
| 4 | Home Health Care Services | 3 | 2.2% | $2.7M | |
| 5 | Other Building Equipment Contractors | 3 | 2.2% | $2.4M | |
| 6 | Couriers and Express Delivery Services | 3 | 2.2% | $1.6M | |
| 7 | Limited-Service Restaurants | 3 | 2.2% | $1.3M | |
| 8 | Beer, Wine, and Liquor Retailers | 3 | 2.2% | $1.2M | |
| 9 | Offices of Chiropractors | 3 | 2.2% | $1.1M | |
| 10 | All Other Plastics Product Manufacturing | 2 | 1.4% | $5.6M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Massage Envy | 1 | 0.7% | $2.2M | |
| 2 | Altitude Trampoline Park | 1 | 0.7% | $1.8M | |
| 3 | Wild Birds Unlimited | 1 | 0.7% | $1.1M | |
| 4 | The UPS Store | 1 | 0.7% | $638K | |
| 5 | ServiceMaster | 1 | 0.7% | $609K | |
| 6 | Beef 'O' Brady's | 1 | 0.7% | $456K | |
| 7 | Carstar | 1 | 0.7% | $416K | |
| 8 | Hoodz | 1 | 0.7% | $247K |
Questions buyers ask
Does Busey Bank make SBA acquisition loans?
Yes. Busey Bank approved 138 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 72 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 Busey Bank's acquisition loans?
The median was $885,950, with the middle half between $502,000 and $1,482,200. The national median is $645,250, so this lender's typical loan is 37% higher than the national figure.
Which states does Busey Bank lend in?
Colorado (37), Illinois (35), Missouri (21), Florida (13), Kansas (10), Arizona (6). Its loans span at least 15 states.
Which industries does Busey Bank finance?
Full-Service Restaurants (9), All Other Specialty Trade Contractors (3), Plumbing, Heating, and Air-Conditioning Contractors (3), Home Health Care Services (3), Other Building Equipment Contractors (3). The top industry is 7% of its acquisition loans.
How have Busey Bank's acquisition loans performed?
Of 59 loans approved FY2018 to FY2021: 1.7% charged off, 52% 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
- Colorado acquisitions
- Illinois acquisitions
- Missouri acquisitions
- Full-Service Restaurants
- All Other Specialty Trade Contractors
- Plumbing, Heating, and Air-Conditioning Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Busey Bank.