First Bank: SBA business acquisition lending record
First Bank (home state NC) approved 249 SBA 7(a) loans to buy existing businesses since FY2018, totaling $279M. The median loan was $713,000. It ranks number 39 of 280 lenders by count and made 0.5% 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 $391,000 and $1,488,400. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. North Carolina is the largest state (21% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 5% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 735 SBA 7(a) loans of any purpose since FY2020, totaling $659M. 83% 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: 5.9% charged off, 68% higher than the 3.5% national average.
First Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 41 | $50.9M | $966,300 | |
| FY2019 | 34 | $28.9M | $607,500 | |
| FY2020 | 15 | $19.6M | $513,200 | |
| FY2021 | 45 | $43.9M | $735,000 | |
| FY2022 | 17 | $20.1M | $661,000 | |
| FY2023 | 26 | $22.4M | $551,850 | |
| FY2024 | 39 | $52.4M | $974,000 | |
| FY2025 | 24 | $34.2M | $877,250 | |
| FY2026 | 8 | $6.7M | $741,300 |
How often do these acquisition loans fail?
Of the 135 First Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 8 have been charged off by the SBA, a rate of 5.9% by loan count and 4.0% by dollars. 55 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 First Bank is 68% 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.
Seller note standby terms and third-party consents are reviewed before closing.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 53 | 21.3% | $48.9M | |
| 2 | California | 43 | 17.3% | $50.5M | |
| 3 | New Jersey | 21 | 8.4% | $19.5M | |
| 4 | Pennsylvania | 15 | 6.0% | $18.7M | |
| 5 | Florida | 12 | 4.8% | $15.9M | |
| 6 | South Carolina | 11 | 4.4% | $20.2M | |
| 7 | Georgia | 10 | 4.0% | $8.6M | |
| 8 | Colorado | 9 | 3.6% | $7.1M | |
| 9 | Texas | 6 | 2.4% | $5.6M | |
| 10 | New York | 6 | 2.4% | $5M | |
| 11 | Michigan | 5 | 2.0% | $11.1M | |
| 12 | Arizona | 5 | 2.0% | $6.3M | |
| 13 | Iowa | 5 | 2.0% | $5M | |
| 14 | Massachusetts | 5 | 2.0% | $3M | |
| 15 | Illinois | 4 | 1.6% | $7M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 13 | 5.2% | $16.8M | |
| 2 | Residential Remodelers | 11 | 4.4% | $8.9M | |
| 3 | Insurance Agencies and Brokerages | 9 | 3.6% | $9.1M | |
| 4 | All Other Specialty Trade Contractors | 7 | 2.8% | $7.7M | |
| 5 | Child Care Services | 7 | 2.8% | $6.6M | |
| 6 | Janitorial Services | 7 | 2.8% | $3.8M | |
| 7 | Hotels (except Casino Hotels) and Motels | 6 | 2.4% | $18.4M | |
| 8 | Beer, Wine, and Liquor Retailers | 6 | 2.4% | $9.9M | |
| 9 | Gasoline Stations with Convenience Stores | 6 | 2.4% | $9M | |
| 10 | Pharmacies and Drug Retailers | 6 | 2.4% | $6.9M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Servpro | 5 | 2.0% | $4.8M | |
| 2 | Quality Inn | 4 | 1.6% | $12.6M | |
| 3 | Bee Hive Homes | 3 | 1.2% | $10.6M | |
| 4 | Budget Blinds | 3 | 1.2% | $1.2M | |
| 5 | Maaco | 2 | 0.8% | $3M | |
| 6 | Liberty Tax Service | 2 | 0.8% | $1.5M | |
| 7 | Pizza Ranch | 1 | 0.4% | $4.8M | |
| 8 | Comfort Inn | 1 | 0.4% | $4.3M | |
| 9 | Ramada | 1 | 0.4% | $2.4M | |
| 10 | Best Western | 1 | 0.4% | $2.3M |
Questions buyers ask
Does First Bank make SBA acquisition loans?
Yes. First Bank approved 249 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 39 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 First Bank's acquisition loans?
The median was $713,000, with the middle half between $391,000 and $1,488,400. The national median is $645,250, so this lender's typical loan is 10% higher than the national figure.
Which states does First Bank lend in?
North Carolina (53), California (43), New Jersey (21), Pennsylvania (15), Florida (12), South Carolina (11). Its loans span at least 15 states.
Which industries does First Bank finance?
Full-Service Restaurants (13), Residential Remodelers (11), Insurance Agencies and Brokerages (9), All Other Specialty Trade Contractors (7), Child Care Services (7). The top industry is 5% of its acquisition loans.
How have First Bank's acquisition loans performed?
Of 135 loans approved FY2018 to FY2021: 5.9% charged off, 68% higher 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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- North Carolina acquisitions
- California acquisitions
- New Jersey acquisitions
- Full-Service Restaurants
- Residential Remodelers
- Insurance Agencies and Brokerages
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by First Bank.