Choice Financial Group: SBA business acquisition lending record
Choice Financial Group (home state ND) approved 31 SBA 7(a) loans to buy existing businesses since FY2018, totaling $24.8M. The median loan was $486,500. It ranks number 243 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 $235,500 and $1,060,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (90% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Custom Computer Programming Services is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 218 SBA 7(a) loans of any purpose since FY2020, totaling $124M. 65% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 19% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: none charged off, against the 3.5% national average.
Choice Financial Group acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $6.8M | $309,200 | |
| FY2019 | 7 | $5.1M | $562,100 | |
| FY2020 | 1 | $3.1M | $3,100,000 | |
| FY2021 | 6 | $4.5M | $436,000 | |
| FY2022 | 2 | $1.2M | $597,500 | |
| FY2023 | 4 | $3M | $789,000 | |
| FY2024 | 2 | $821K | $410,250 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 2 | $340K | $170,000 |
How often do these acquisition loans fail?
Of the 21 Choice Financial Group acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 17 have already been paid in full.
For comparison, Choice Financial Group has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.
Seller note standby terms and third-party consents are reviewed before closing.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 28 | 90.3% | $22.9M | |
| 2 | North Dakota | 3 | 9.7% | $1.9M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Custom Computer Programming Services | 2 | 6.5% | $3.7M | |
| 2 | All Other Specialty Trade Contractors | 2 | 6.5% | $1.9M | |
| 3 | Snack and Nonalcoholic Beverage Bars | 2 | 6.5% | $529K | |
| 4 | Offices of Chiropractors | 2 | 6.5% | $255K | |
| 5 | Commercial Screen Printing | 1 | 3.2% | $3.1M | |
| 6 | Engineering Services | 1 | 3.2% | $2.3M | |
| 7 | Pet Care (except Veterinary) Services | 1 | 3.2% | $2.1M | |
| 8 | All Other Miscellaneous General Purpose Machinery Manufacturing | 1 | 3.2% | $1.6M | |
| 9 | Motor Vehicle Towing | 1 | 3.2% | $1M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Paul Davis Restoration | 1 | 3.2% | $1.1M | |
| 2 | Orange Theory Fitness | 1 | 3.2% | $487K | |
| 3 | Amazing Lash Studio | 1 | 3.2% | $407K | |
| 4 | Rita's Ice-Custard-Happiness | 1 | 3.2% | $309K | |
| 5 | Dunn Brothers Coffee | 1 | 3.2% | $220K |
Questions buyers ask
Does Choice Financial Group make SBA acquisition loans?
Yes. Choice Financial Group approved 31 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 243 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 Choice Financial Group's acquisition loans?
The median was $486,500, with the middle half between $235,500 and $1,060,000. The national median is $645,250, so this lender's typical loan is 25% lower than the national figure.
Which states does Choice Financial Group lend in?
Minnesota (28), North Dakota (3). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does Choice Financial Group finance?
Custom Computer Programming Services (2), All Other Specialty Trade Contractors (2), Snack and Nonalcoholic Beverage Bars (2), Offices of Chiropractors (2), Commercial Screen Printing (1). The top industry is 6% of its acquisition loans.
How have Choice Financial Group's acquisition loans performed?
Of 21 loans approved FY2018 to FY2021: none charged off, against 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
- Minnesota acquisitions
- North Dakota acquisitions
- Custom Computer Programming Services
- All Other Specialty Trade Contractors
- Snack and Nonalcoholic Beverage Bars
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Choice Financial Group.