FinWise Bank: SBA business acquisition lending record
FinWise Bank (home state UT) approved 35 SBA 7(a) loans to buy existing businesses since FY2018, totaling $44.5M. The median loan was $650,000. It ranks number 222 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $312,000 and $1,625,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. New York is the largest state (20% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Assisted Living Facilities for the Elderly is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 623 SBA 7(a) loans of any purpose since FY2020, totaling $751M. 3% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 9% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.2% charged off, 18% higher than the 3.5% national average.
FinWise Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $5.5M | $342,000 | |
| FY2019 | 6 | $8.4M | $437,500 | |
| FY2020 | 4 | $3.1M | $698,500 | |
| FY2021 | 7 | $10.1M | $567,000 | |
| FY2022 | 2 | $6.8M | $3,380,000 | |
| FY2023 | 1 | $629K | $629,000 | |
| FY2024 | 3 | $4.8M | $500,000 | |
| FY2025 | 2 | $2.6M | $1,290,500 | |
| FY2026 | 3 | $2.6M | $985,000 |
How often do these acquisition loans fail?
Of the 24 FinWise Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 4.2% by loan count and 0.4% by dollars. 14 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 FinWise Bank is 18% higher 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New York | 7 | 20.0% | $8.9M | |
| 2 | Pennsylvania | 6 | 17.1% | $5.4M | |
| 3 | Florida | 3 | 8.6% | $5.5M | |
| 4 | New Jersey | 3 | 8.6% | $2.2M | |
| 5 | Tennessee | 2 | 5.7% | $4.4M | |
| 6 | Nevada | 2 | 5.7% | $2.7M | |
| 7 | Texas | 2 | 5.7% | $2.6M | |
| 8 | California | 1 | 2.9% | $4.8M | |
| 9 | South Carolina | 1 | 2.9% | $4.1M | |
| 10 | Colorado | 1 | 2.9% | $1.5M | |
| 11 | Montana | 1 | 2.9% | $779K | |
| 12 | Wisconsin | 1 | 2.9% | $650K | |
| 13 | Georgia | 1 | 2.9% | $500K | |
| 14 | Louisiana | 1 | 2.9% | $150K | |
| 15 | Michigan | 1 | 2.9% | $122K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Assisted Living Facilities for the Elderly | 2 | 5.7% | $8.8M | |
| 2 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 2 | 5.7% | $3.3M | |
| 3 | Home Health Care Services | 2 | 5.7% | $2.6M | |
| 4 | Other Residential Care Facilities | 2 | 5.7% | $2M | |
| 5 | Other Computer Related Services | 2 | 5.7% | $644K | |
| 6 | Offices of Physicians (except Mental Health Specialists) | 1 | 2.9% | $5M | |
| 7 | Residential Mental Health and Substance Abuse Facilities | 1 | 2.9% | $4.1M | |
| 8 | Offices of Lawyers | 1 | 2.9% | $2.6M | |
| 9 | Used Car Dealers | 1 | 2.9% | $2.5M | |
| 10 | Electronic Shopping and Mail-Order Houses | 1 | 2.9% | $1.8M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Supercuts | 1 | 2.9% | $650K | |
| 2 | Firehouse Subs | 1 | 2.9% | $225K |
Questions buyers ask
Does FinWise Bank make SBA acquisition loans?
Yes. FinWise Bank approved 35 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 222 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 FinWise Bank's acquisition loans?
The median was $650,000, with the middle half between $312,000 and $1,625,000. The national median is $645,250, so this lender's typical loan is in line with the national figure.
Which states does FinWise Bank lend in?
New York (7), Pennsylvania (6), Florida (3), New Jersey (3), Tennessee (2), Nevada (2). Its loans span at least 15 states.
Which industries does FinWise Bank finance?
Assisted Living Facilities for the Elderly (2), Supermarkets and Other Grocery Retailers (except Convenience Retailers) (2), Home Health Care Services (2), Other Residential Care Facilities (2), Other Computer Related Services (2). The top industry is 6% of its acquisition loans.
How have FinWise Bank's acquisition loans performed?
Of 24 loans approved FY2018 to FY2021: 4.2% charged off, 18% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
The purchase agreement decides what you bought, not the loan approval.
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Related
- New York acquisitions
- Pennsylvania acquisitions
- Florida acquisitions
- Assisted Living Facilities for the Elderly
- Supermarkets and Other Grocery Retailers (except Convenience Retailers)
- Home Health Care Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by FinWise Bank.