East West Bank: SBA business acquisition lending record
East West Bank (home state CA) approved 139 SBA 7(a) loans to buy existing businesses since FY2018, totaling $131M. The median loan was $620,000. It ranks number 71 of 280 lenders by count and made 0.3% 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 $326,000 and $1,194,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (46% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 13% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 829 SBA 7(a) loans of any purpose since FY2020, totaling $681M. 100% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 24% 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.
East West Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $4.2M | $500,000 | |
| FY2019 | 7 | $7.6M | $1,030,000 | |
| FY2020 | 3 | $4.5M | $1,428,000 | |
| FY2021 | 7 | $2.4M | $274,000 | |
| FY2022 | 6 | $13.8M | $2,483,500 | |
| FY2023 | 24 | $39M | $1,171,500 | |
| FY2024 | 4 | $2.3M | $360,000 | |
| FY2025 | 34 | $19.8M | $442,400 | |
| FY2026 | 49 | $37.4M | $591,000 |
How often do these acquisition loans fail?
Of the 22 East West 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. 16 have already been paid in full.
For comparison, East West 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
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 64 | 46.0% | $66.6M | |
| 2 | Washington | 41 | 29.5% | $27.7M | |
| 3 | Texas | 12 | 8.6% | $11.6M | |
| 4 | New Jersey | 4 | 2.9% | $2.6M | |
| 5 | Virginia | 2 | 1.4% | $6.6M | |
| 6 | Georgia | 2 | 1.4% | $3.1M | |
| 7 | North Carolina | 2 | 1.4% | $1.6M | |
| 8 | Maryland | 2 | 1.4% | $1.6M | |
| 9 | Minnesota | 1 | 0.7% | $2.7M | |
| 10 | Massachusetts | 1 | 0.7% | $1.3M | |
| 11 | Wisconsin | 1 | 0.7% | $1.1M | |
| 12 | Idaho | 1 | 0.7% | $1M | |
| 13 | Alabama | 1 | 0.7% | $850K | |
| 14 | South Carolina | 1 | 0.7% | $750K | |
| 15 | Ohio | 1 | 0.7% | $530K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 18 | 12.9% | $12.5M | |
| 2 | Full-Service Restaurants | 17 | 12.2% | $10.7M | |
| 3 | Gasoline Stations with Convenience Stores | 16 | 11.5% | $29.4M | |
| 4 | Hotels (except Casino Hotels) and Motels | 12 | 8.6% | $23.4M | |
| 5 | Beer, Wine, and Liquor Retailers | 11 | 7.9% | $7.7M | |
| 6 | Snack and Nonalcoholic Beverage Bars | 6 | 4.3% | $1.8M | |
| 7 | Assisted Living Facilities for the Elderly | 5 | 3.6% | $7.2M | |
| 8 | Coin-Operated Laundries and Drycleaners | 4 | 2.9% | $2.4M | |
| 9 | Convenience Retailers | 4 | 2.9% | $2.1M | |
| 10 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 2.9% | $1.4M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Paris Baguette | 3 | 2.2% | $2.9M | |
| 2 | Chevron | 1 | 0.7% | $4.6M | |
| 3 | Phillips 66 | 1 | 0.7% | $3.1M | |
| 4 | Red Roof Inn | 1 | 0.7% | $3M | |
| 5 | Van De Pol Enterprises | 1 | 0.7% | $2.7M | |
| 6 | Super 8 | 1 | 0.7% | $2.4M | |
| 7 | Days Inn | 1 | 0.7% | $2.2M | |
| 8 | Valley Pacific Petroleum Services | 1 | 0.7% | $1.3M | |
| 9 | WNB Factory | 1 | 0.7% | $917K | |
| 10 | Motel 6 | 1 | 0.7% | $850K |
Questions buyers ask
Does East West Bank make SBA acquisition loans?
Yes. East West Bank approved 139 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 71 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 East West Bank's acquisition loans?
The median was $620,000, with the middle half between $326,000 and $1,194,000. The national median is $645,250, so this lender's typical loan is in line with the national figure.
Which states does East West Bank lend in?
California (64), Washington (41), Texas (12), New Jersey (4), Virginia (2), Georgia (2). Its loans span at least 15 states.
Which industries does East West Bank finance?
Limited-Service Restaurants (18), Full-Service Restaurants (17), Gasoline Stations with Convenience Stores (16), Hotels (except Casino Hotels) and Motels (12), Beer, Wine, and Liquor Retailers (11). The top industry is 13% of its acquisition loans.
How have East West Bank's acquisition loans performed?
Of 22 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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- California acquisitions
- Washington acquisitions
- Texas acquisitions
- Limited-Service Restaurants
- Full-Service Restaurants
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by East West Bank.