Central Bank: SBA business acquisition lending record
Central Bank (home state UT) approved 58 SBA 7(a) loans to buy existing businesses since FY2018, totaling $34.9M. The median loan was $380,100. It ranks number 150 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $187,700 and $821,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Utah is the largest state (71% of loans). Loans appear in only 5 states, which points to a regional lender.
- Industry concentration. Janitorial Services is 5% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 571 SBA 7(a) loans of any purpose since FY2020, totaling $236M. 72% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 16% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.5% charged off, 29% higher than the 3.5% national average.
Central Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $1.9M | $539,700 | |
| FY2019 | 2 | $559K | $279,500 | |
| FY2020 | 6 | $4.8M | $661,000 | |
| FY2021 | 11 | $6.6M | $531,600 | |
| FY2022 | 11 | $3.8M | $195,800 | |
| FY2023 | 10 | $9.7M | $459,000 | |
| FY2024 | 10 | $4.3M | $363,100 | |
| FY2025 | 3 | $2.2M | $351,300 | |
| FY2026 | 2 | $945K | $472,500 |
How often do these acquisition loans fail?
Of the 22 Central 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 4.5% by loan count and 0.6% by dollars. 13 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 Central Bank is 29% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Utah | 41 | 70.7% | $19.4M | |
| 2 | Florida | 8 | 13.8% | $7.7M | |
| 3 | Iowa | 6 | 10.3% | $5.6M | |
| 4 | Texas | 2 | 3.4% | $1.8M | |
| 5 | South Dakota | 1 | 1.7% | $374K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Janitorial Services | 3 | 5.2% | $696K | |
| 2 | Fitness and Recreational Sports Centers | 2 | 3.4% | $3.1M | |
| 3 | Gasoline Stations with Convenience Stores | 2 | 3.4% | $2M | |
| 4 | All Other Miscellaneous Retailers | 2 | 3.4% | $1.7M | |
| 5 | Landscaping Services | 2 | 3.4% | $1.1M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 2 | 3.4% | $1M | |
| 7 | Limited-Service Restaurants | 2 | 3.4% | $488K | |
| 8 | Retail Bakeries | 2 | 3.4% | $395K | |
| 9 | Vending Machine Operators | 2 | 3.4% | $292K | |
| 10 | Electrical Contractors and Other Wiring Installation Contractors | 2 | 3.4% | $150K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Jackson Food Stores | 1 | 1.7% | $1.1M | |
| 2 | True Value | 1 | 1.7% | $860K | |
| 3 | FASTSIGNS | 1 | 1.7% | $365K | |
| 4 | The Cleaning Authority | 1 | 1.7% | $344K | |
| 5 | Marco's Pizza | 1 | 1.7% | $339K |
Questions buyers ask
Does Central Bank make SBA acquisition loans?
Yes. Central Bank approved 58 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 150 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 Central Bank's acquisition loans?
The median was $380,100, with the middle half between $187,700 and $821,750. The national median is $645,250, so this lender's typical loan is 41% lower than the national figure.
Which states does Central Bank lend in?
Utah (41), Florida (8), Iowa (6), Texas (2), South Dakota (1). Its loans appear in 5 states, so it is closer to a regional lender.
Which industries does Central Bank finance?
Janitorial Services (3), Fitness and Recreational Sports Centers (2), Gasoline Stations with Convenience Stores (2), All Other Miscellaneous Retailers (2), Landscaping Services (2). The top industry is 5% of its acquisition loans.
How have Central Bank's acquisition loans performed?
Of 22 loans approved FY2018 to FY2021: 4.5% charged off, 29% 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
- Utah acquisitions
- Florida acquisitions
- Iowa acquisitions
- Janitorial Services
- Fitness and Recreational Sports Centers
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Central Bank.