ChoiceOne Bank: SBA business acquisition lending record
ChoiceOne Bank (home state MI) approved 56 SBA 7(a) loans to buy existing businesses since FY2018, totaling $39.1M. The median loan was $390,000. It ranks number 157 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 $181,000 and $884,350. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Michigan is the largest state (98% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Limited-Service Restaurants is 14% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 425 SBA 7(a) loans of any purpose since FY2020, totaling $261M. 41% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 20% 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.
ChoiceOne Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $1.8M | $110,400 | |
| FY2019 | 11 | $4.8M | $186,000 | |
| FY2020 | 5 | $2.2M | $395,000 | |
| FY2021 | 9 | $9.8M | $850,000 | |
| FY2022 | 5 | $3.1M | $228,600 | |
| FY2023 | 4 | $3.3M | $811,950 | |
| FY2024 | 3 | $1.3M | $253,400 | |
| FY2025 | 4 | $1.3M | $296,750 | |
| FY2026 | 11 | $11.4M | $1,113,900 |
How often do these acquisition loans fail?
Of the 29 ChoiceOne Bank 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. 19 have already been paid in full.
For comparison, ChoiceOne Bank 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.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 8 | 14.3% | $5.5M | |
| 2 | Offices of Chiropractors | 3 | 5.4% | $369K | |
| 3 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 2 | 3.6% | $3.9M | |
| 4 | Machine Shops | 2 | 3.6% | $2.4M | |
| 5 | Hardware Retailers | 2 | 3.6% | $2.4M | |
| 6 | Full-Service Restaurants | 2 | 3.6% | $2.1M | |
| 7 | Couriers and Express Delivery Services | 2 | 3.6% | $2M | |
| 8 | Other Industrial Machinery Manufacturing | 2 | 3.6% | $1.4M | |
| 9 | Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers | 2 | 3.6% | $971K |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Little Caesars | 4 | 7.1% | $3.7M | |
| 2 | Ace Hardware | 2 | 3.6% | $2.4M | |
| 3 | Shredder Indoor Ski and Snowboard School | 2 | 3.6% | $285K | |
| 4 | Dairy Queen | 1 | 1.8% | $833K |
Questions buyers ask
Does ChoiceOne Bank make SBA acquisition loans?
Yes. ChoiceOne Bank approved 56 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 157 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 ChoiceOne Bank's acquisition loans?
The median was $390,000, with the middle half between $181,000 and $884,350. The national median is $645,250, so this lender's typical loan is 40% lower than the national figure.
Which states does ChoiceOne Bank lend in?
Michigan (55), Indiana (1). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does ChoiceOne Bank finance?
Limited-Service Restaurants (8), Offices of Chiropractors (3), Supermarkets and Other Grocery Retailers (except Convenience Retailers) (2), Machine Shops (2), Hardware Retailers (2). The top industry is 14% of its acquisition loans.
How have ChoiceOne Bank's acquisition loans performed?
Of 29 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Michigan acquisitions
- Indiana acquisitions
- Limited-Service Restaurants
- Offices of Chiropractors
- Supermarkets and Other Grocery Retailers (except Convenience Retailers)
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by ChoiceOne Bank.