First Resource Bank: SBA business acquisition lending record
First Resource Bank (home state MN) approved 29 SBA 7(a) loans to buy existing businesses since FY2018, totaling $34M. The median loan was $830,000. It ranks number 256 of 280 lenders by count and made 0.1% 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 $450,000 and $1,393,100. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (69% of loans). Loans appear in only 5 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 7% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 133 SBA 7(a) loans of any purpose since FY2020, totaling $90.1M. 66% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Too few of its loans are old enough to measure a charge-off rate.
First Resource Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $237K | $236,700 | |
| FY2019 | 1 | $450K | $450,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $1.5M | $1,480,800 | |
| FY2023 | 3 | $5.4M | $785,000 | |
| FY2024 | 2 | $3.5M | $1,736,250 | |
| FY2025 | 12 | $14.9M | $842,500 | |
| FY2026 | 9 | $8.1M | $855,000 |
How often do these acquisition loans fail?
Fewer than 20 First Resource Bank acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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 | Minnesota | 20 | 69.0% | $16.5M | |
| 2 | Pennsylvania | 5 | 17.2% | $8.7M | |
| 3 | New Jersey | 2 | 6.9% | $5.3M | |
| 4 | California | 1 | 3.4% | $3M | |
| 5 | Wisconsin | 1 | 3.4% | $494K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 2 | 6.9% | $5.6M | |
| 2 | Residential Remodelers | 2 | 6.9% | $2.5M | |
| 3 | Cut Stone and Stone Product Manufacturing | 2 | 6.9% | $2.2M | |
| 4 | Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers | 2 | 6.9% | $1.6M | |
| 5 | Offices of Certified Public Accountants | 2 | 6.9% | $1.1M | |
| 6 | Other Commercial and Industrial Machinery and Equipment Rental and Leasing | 2 | 6.9% | $500K | |
| 7 | Hotels (except Casino Hotels) and Motels | 1 | 3.4% | $4M | |
| 8 | All Other Miscellaneous Schools and Instruction | 1 | 3.4% | $3M | |
| 9 | Window Treatment Retailers | 1 | 3.4% | $2.9M | |
| 10 | Breweries | 1 | 3.4% | $1.5M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ben & Jerry's | 1 | 3.4% | $417K |
Questions buyers ask
Does First Resource Bank make SBA acquisition loans?
Yes. First Resource Bank approved 29 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 256 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 Resource Bank's acquisition loans?
The median was $830,000, with the middle half between $450,000 and $1,393,100. The national median is $645,250, so this lender's typical loan is 29% higher than the national figure.
Which states does First Resource Bank lend in?
Minnesota (20), Pennsylvania (5), New Jersey (2), California (1), Wisconsin (1). Its loans appear in 5 states, so it is closer to a regional lender.
Which industries does First Resource Bank finance?
Full-Service Restaurants (2), Residential Remodelers (2), Cut Stone and Stone Product Manufacturing (2), Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers (2), Offices of Certified Public Accountants (2). The top industry is 7% of its acquisition loans.
How have First Resource Bank's acquisition loans performed?
Fewer than 20 of this lender's loans are old enough to measure. The national benchmark is 3.5% for the FY2018 to FY2021 cohort.
The purchase agreement decides what you bought, not the loan approval.
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Related
- Minnesota acquisitions
- Pennsylvania acquisitions
- New Jersey acquisitions
- Full-Service Restaurants
- Residential Remodelers
- Cut Stone and Stone Product Manufacturing
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by First Resource Bank.