Eastern Bank: SBA business acquisition lending record
Eastern Bank (home state MA) approved 81 SBA 7(a) loans to buy existing businesses since FY2018, totaling $37.6M. The median loan was $300,000. It ranks number 117 of 280 lenders by count and made 0.2% 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 $160,000 and $558,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Massachusetts is the largest state (74% of loans). Loans appear in only 3 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 14% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 2,273 SBA 7(a) loans of any purpose since FY2020, totaling $332M. 54% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 4% 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.
Eastern Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $2.9M | $270,000 | |
| FY2019 | 5 | $662K | $67,000 | |
| FY2020 | 7 | $2.9M | $500,000 | |
| FY2021 | 13 | $6.4M | $250,000 | |
| FY2022 | 12 | $5.6M | $290,250 | |
| FY2023 | 19 | $11.5M | $432,000 | |
| FY2024 | 4 | $2.2M | $347,500 | |
| FY2025 | 5 | $2.4M | $350,000 | |
| FY2026 | 7 | $3M | $350,000 |
How often do these acquisition loans fail?
Of the 34 Eastern 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. 21 have already been paid in full.
For comparison, Eastern 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 | Massachusetts | 60 | 74.1% | $27.6M | |
| 2 | Rhode Island | 12 | 14.8% | $7.8M | |
| 3 | New Hampshire | 9 | 11.1% | $2.2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 11 | 13.6% | $6.6M | |
| 2 | Beer, Wine, and Liquor Retailers | 5 | 6.2% | $4.6M | |
| 3 | General Automotive Repair | 3 | 3.7% | $1.9M | |
| 4 | Limited-Service Restaurants | 3 | 3.7% | $1.3M | |
| 5 | Offices of Certified Public Accountants | 3 | 3.7% | $1.3M | |
| 6 | Other Personal and Household Goods Repair and Maintenance | 3 | 3.7% | $936K | |
| 7 | Clothing and Clothing Accessories Retailers | 3 | 3.7% | $877K | |
| 8 | Site Preparation Contractors | 3 | 3.7% | $700K | |
| 9 | Breweries | 3 | 3.7% | $442K | |
| 10 | Other Services Related to Advertising | 2 | 2.5% | $2.4M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Sir Speedy | 1 | 1.2% | $150K | |
| 2 | Filta Environmental Kitchen Solutions | 1 | 1.2% | $135K |
Questions buyers ask
Does Eastern Bank make SBA acquisition loans?
Yes. Eastern Bank approved 81 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 117 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 Eastern Bank's acquisition loans?
The median was $300,000, with the middle half between $160,000 and $558,000. The national median is $645,250, so this lender's typical loan is 54% lower than the national figure.
Which states does Eastern Bank lend in?
Massachusetts (60), Rhode Island (12), New Hampshire (9). Its loans appear in 3 states, so it is closer to a regional lender.
Which industries does Eastern Bank finance?
Full-Service Restaurants (11), Beer, Wine, and Liquor Retailers (5), General Automotive Repair (3), Limited-Service Restaurants (3), Offices of Certified Public Accountants (3). The top industry is 14% of its acquisition loans.
How have Eastern Bank's acquisition loans performed?
Of 34 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
- Massachusetts acquisitions
- Rhode Island acquisitions
- New Hampshire acquisitions
- Full-Service Restaurants
- Beer, Wine, and Liquor Retailers
- General Automotive Repair
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Eastern Bank.