Frandsen Bank and Trust: SBA business acquisition lending record
Legal name in the SBA file: Frandsen Bank and Trust
Frandsen Bank and Trust (home state MN) approved 92 SBA 7(a) loans to buy existing businesses since FY2018, totaling $61.6M. The median loan was $518,750. It ranks number 107 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 $261,325 and $832,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (89% of loans). Loans appear in only 3 states, which points to a regional lender.
- Industry concentration. Electrical Contractors and Other Wiring Installation Contractors is 5% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 330 SBA 7(a) loans of any purpose since FY2020, totaling $179M. 92% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 12% 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.
Frandsen Bank and Trust acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $1.7M | $229,500 | |
| FY2019 | 2 | $3.6M | $1,785,000 | |
| FY2020 | 8 | $3.9M | $441,250 | |
| FY2021 | 15 | $8.5M | $425,000 | |
| FY2022 | 15 | $13.5M | $612,000 | |
| FY2023 | 13 | $9.3M | $685,000 | |
| FY2024 | 9 | $6.3M | $327,200 | |
| FY2025 | 12 | $10M | $799,500 | |
| FY2026 | 12 | $4.9M | $297,950 |
How often do these acquisition loans fail?
Of the 31 Frandsen Bank and Trust 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. 19 have already been paid in full.
For comparison, Frandsen Bank and Trust 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 82 | 89.1% | $55.3M | |
| 2 | Wisconsin | 8 | 8.7% | $4.2M | |
| 3 | North Dakota | 2 | 2.2% | $2.1M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Electrical Contractors and Other Wiring Installation Contractors | 5 | 5.4% | $2.3M | |
| 2 | Limited-Service Restaurants | 4 | 4.3% | $2.9M | |
| 3 | Coin-Operated Laundries and Drycleaners | 4 | 4.3% | $2.4M | |
| 4 | Beer, Wine, and Liquor Retailers | 4 | 4.3% | $1.2M | |
| 5 | All Other Specialty Trade Contractors | 3 | 3.3% | $3.6M | |
| 6 | Full-Service Restaurants | 3 | 3.3% | $2.2M | |
| 7 | Offices of Chiropractors | 3 | 3.3% | $1M | |
| 8 | General Automotive Repair | 3 | 3.3% | $798K | |
| 9 | General Freight Trucking, Local | 2 | 2.2% | $3.2M | |
| 10 | All Other Amusement and Recreation Industries | 2 | 2.2% | $1.4M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Jersey Mike's Subs | 2 | 2.2% | $1.8M | |
| 2 | The UPS Store | 2 | 2.2% | $1.1M | |
| 3 | Toppers Pizza | 1 | 1.1% | $859K | |
| 4 | Great Harvest | 1 | 1.1% | $499K | |
| 5 | H&R Block | 1 | 1.1% | $267K | |
| 6 | Fantastic Sams | 1 | 1.1% | $210K |
Questions buyers ask
Does Frandsen Bank and Trust make SBA acquisition loans?
Yes. Frandsen Bank and Trust approved 92 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 107 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 Frandsen Bank and Trust's acquisition loans?
The median was $518,750, with the middle half between $261,325 and $832,000. The national median is $645,250, so this lender's typical loan is 20% lower than the national figure.
Which states does Frandsen Bank and Trust lend in?
Minnesota (82), Wisconsin (8), North Dakota (2). Its loans appear in 3 states, so it is closer to a regional lender.
Which industries does Frandsen Bank and Trust finance?
Electrical Contractors and Other Wiring Installation Contractors (5), Limited-Service Restaurants (4), Coin-Operated Laundries and Drycleaners (4), Beer, Wine, and Liquor Retailers (4), All Other Specialty Trade Contractors (3). The top industry is 5% of its acquisition loans.
How have Frandsen Bank and Trust's acquisition loans performed?
Of 31 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.
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Related
- Minnesota acquisitions
- Wisconsin acquisitions
- North Dakota acquisitions
- Electrical Contractors and Other Wiring Installation Contractors
- Limited-Service Restaurants
- Coin-Operated Laundries and Drycleaners
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Frandsen Bank and Trust.