CDC Small Business Finance Corp.: SBA business acquisition lending record
CDC Small Business Finance Corp. (home state CA) approved 165 SBA 7(a) loans to buy existing businesses since FY2018, totaling $34.3M. The median loan was $216,000. It ranks number 59 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 $150,000 and $250,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (79% of loans). Loans appear in only 11 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,579 SBA 7(a) loans of any purpose since FY2020, totaling $247M. 21% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 12% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 23.3% charged off, 562% higher than the 3.5% national average.
CDC Small Business Finance Corp. acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 26 | $5.1M | $207,050 | |
| FY2019 | 20 | $4.1M | $223,850 | |
| FY2020 | 12 | $2.2M | $192,500 | |
| FY2021 | 15 | $2.9M | $166,500 | |
| FY2022 | 28 | $5.3M | $211,250 | |
| FY2023 | 29 | $6.3M | $215,100 | |
| FY2024 | 19 | $4.6M | $270,000 | |
| FY2025 | 13 | $3.1M | $230,000 | |
| FY2026 | 3 | $647K | $225,000 |
How often do these acquisition loans fail?
Of the 73 CDC Small Business Finance Corp. acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 17 have been charged off by the SBA, a rate of 23.3% by loan count and 16.2% by dollars. 22 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 CDC Small Business Finance Corp. is 562% 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 | 131 | 79.4% | $26.8M | |
| 2 | Arizona | 17 | 10.3% | $3.9M | |
| 3 | Nevada | 6 | 3.6% | $1M | |
| 4 | Texas | 3 | 1.8% | $642K | |
| 5 | Virginia | 2 | 1.2% | $410K | |
| 6 | Maryland | 1 | 0.6% | $350K | |
| 7 | Colorado | 1 | 0.6% | $300K | |
| 8 | New Jersey | 1 | 0.6% | $298K | |
| 9 | Illinois | 1 | 0.6% | $198K | |
| 10 | Washington | 1 | 0.6% | $180K | |
| 11 | Florida | 1 | 0.6% | $135K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 13 | 7.9% | $2.9M | |
| 2 | General Automotive Repair | 11 | 6.7% | $1.9M | |
| 3 | Limited-Service Restaurants | 8 | 4.8% | $1.8M | |
| 4 | Fitness and Recreational Sports Centers | 7 | 4.2% | $1.5M | |
| 5 | Snack and Nonalcoholic Beverage Bars | 6 | 3.6% | $1.6M | |
| 6 | Pet Care (except Veterinary) Services | 6 | 3.6% | $1.3M | |
| 7 | All Other Specialty Trade Contractors | 4 | 2.4% | $1.1M | |
| 8 | All Other Personal Services | 4 | 2.4% | $818K | |
| 9 | All Other General Merchandise Retailers | 4 | 2.4% | $793K | |
| 10 | Jewelry Retailers | 3 | 1.8% | $706K |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | CarePatrol | 2 | 1.2% | $648K | |
| 2 | Play It Again Sports | 1 | 0.6% | $302K | |
| 3 | CertaPro Painters | 1 | 0.6% | $250K | |
| 4 | Yogurtland | 1 | 0.6% | $250K | |
| 5 | PostalAnnex+ | 1 | 0.6% | $243K | |
| 6 | Fish Window Cleaning Services | 1 | 0.6% | $235K | |
| 7 | Image360 | 1 | 0.6% | $227K | |
| 8 | Edible Arrangements | 1 | 0.6% | $225K | |
| 9 | Pure Barre | 1 | 0.6% | $173K | |
| 10 | Subway | 1 | 0.6% | $170K |
Questions buyers ask
Does CDC Small Business Finance Corp. make SBA acquisition loans?
Yes. CDC Small Business Finance Corp. approved 165 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 59 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 CDC Small Business Finance Corp.'s acquisition loans?
The median was $216,000, with the middle half between $150,000 and $250,000. The national median is $645,250, so this lender's typical loan is 67% lower than the national figure.
Which states does CDC Small Business Finance Corp. lend in?
California (131), Arizona (17), Nevada (6), Texas (3), Virginia (2), Maryland (1). Its loans appear in 11 states, so it is closer to a regional lender.
Which industries does CDC Small Business Finance Corp. finance?
Full-Service Restaurants (13), General Automotive Repair (11), Limited-Service Restaurants (8), Fitness and Recreational Sports Centers (7), Snack and Nonalcoholic Beverage Bars (6). The top industry is 8% of its acquisition loans.
How have CDC Small Business Finance Corp.'s acquisition loans performed?
Of 73 loans approved FY2018 to FY2021: 23.3% charged off, 562% 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
- Arizona acquisitions
- Nevada acquisitions
- Full-Service Restaurants
- General Automotive Repair
- Limited-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by CDC Small Business Finance Corp..