Commonwealth Business Bank: SBA business acquisition lending record
Commonwealth Business Bank (home state CA) approved 284 SBA 7(a) loans to buy existing businesses since FY2018, totaling $295M. The median loan was $565,000. It ranks number 34 of 280 lenders by count and made 0.6% 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 $315,750 and $1,205,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (60% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Convenience Retailers is 23% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 982 SBA 7(a) loans of any purpose since FY2020, totaling $1.3B. 92% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 21% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.8% charged off, 49% lower than the 3.5% national average.
Commonwealth Business Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 21 | $22.5M | $584,000 | |
| FY2019 | 18 | $17M | $430,500 | |
| FY2020 | 17 | $24M | $1,050,000 | |
| FY2021 | 55 | $60.4M | $638,000 | |
| FY2022 | 51 | $43.7M | $350,000 | |
| FY2023 | 30 | $23.9M | $385,000 | |
| FY2024 | 48 | $54.3M | $560,000 | |
| FY2025 | 29 | $31.1M | $600,000 | |
| FY2026 | 15 | $18.6M | $880,000 |
How often do these acquisition loans fail?
Of the 111 Commonwealth Business Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 1.8% by loan count and 0.3% by dollars. 53 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 Commonwealth Business Bank is 49% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 170 | 59.9% | $126M | |
| 2 | Texas | 30 | 10.6% | $49.9M | |
| 3 | Washington | 25 | 8.8% | $32.3M | |
| 4 | Georgia | 18 | 6.3% | $26.5M | |
| 5 | Colorado | 8 | 2.8% | $16.7M | |
| 6 | Oregon | 6 | 2.1% | $7.5M | |
| 7 | Hawaii | 5 | 1.8% | $1.1M | |
| 8 | North Carolina | 3 | 1.1% | $5.3M | |
| 9 | New York | 3 | 1.1% | $3.2M | |
| 10 | Alabama | 2 | 0.7% | $4.5M | |
| 11 | Virginia | 2 | 0.7% | $3.5M | |
| 12 | Tennessee | 2 | 0.7% | $1.5M | |
| 13 | West Virginia | 1 | 0.4% | $5M | |
| 14 | Kentucky | 1 | 0.4% | $3.2M | |
| 15 | Florida | 1 | 0.4% | $3.2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Convenience Retailers | 65 | 22.9% | $35.3M | |
| 2 | Beer, Wine, and Liquor Retailers | 52 | 18.3% | $39.1M | |
| 3 | Gasoline Stations with Convenience Stores | 51 | 18.0% | $83.8M | |
| 4 | Full-Service Restaurants | 24 | 8.5% | $16.5M | |
| 5 | Limited-Service Restaurants | 23 | 8.1% | $13.7M | |
| 6 | Hotels (except Casino Hotels) and Motels | 19 | 6.7% | $66.1M | |
| 7 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 8 | 2.8% | $6.4M | |
| 8 | Assisted Living Facilities for the Elderly | 6 | 2.1% | $9M | |
| 9 | Tobacco, Electronic Cigarette, and Other Smoking Supplies Retailers | 4 | 1.4% | $1.4M | |
| 10 | Baked Goods Retailers | 3 | 1.1% | $3.7M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Christensen Inc. | 3 | 1.1% | $5.7M | |
| 2 | Golden Chick | 3 | 1.1% | $5.3M | |
| 3 | Comfort Suites | 2 | 0.7% | $9.3M | |
| 4 | La Quinta | 2 | 0.7% | $8.4M | |
| 5 | SureStay | 2 | 0.7% | $6.7M | |
| 6 | Super 8 | 2 | 0.7% | $5.7M | |
| 7 | Phillips 66 | 2 | 0.7% | $3.1M | |
| 8 | AM/PM Mini-Mart | 2 | 0.7% | $3M | |
| 9 | World Fuel Services | 2 | 0.7% | $2.6M | |
| 10 | Paris Baguette | 2 | 0.7% | $2.2M |
Questions buyers ask
Does Commonwealth Business Bank make SBA acquisition loans?
Yes. Commonwealth Business Bank approved 284 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 34 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 Commonwealth Business Bank's acquisition loans?
The median was $565,000, with the middle half between $315,750 and $1,205,000. The national median is $645,250, so this lender's typical loan is 12% lower than the national figure.
Which states does Commonwealth Business Bank lend in?
California (170), Texas (30), Washington (25), Georgia (18), Colorado (8), Oregon (6). Its loans span at least 15 states.
Which industries does Commonwealth Business Bank finance?
Convenience Retailers (65), Beer, Wine, and Liquor Retailers (52), Gasoline Stations with Convenience Stores (51), Full-Service Restaurants (24), Limited-Service Restaurants (23). The top industry is 23% of its acquisition loans.
How have Commonwealth Business Bank's acquisition loans performed?
Of 111 loans approved FY2018 to FY2021: 1.8% charged off, 49% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- California acquisitions
- Texas acquisitions
- Washington acquisitions
- Convenience Retailers
- Beer, Wine, and Liquor Retailers
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Commonwealth Business Bank.