Frost Bank: SBA business acquisition lending record
Frost Bank (home state TX) approved 51 SBA 7(a) loans to buy existing businesses since FY2018, totaling $52.8M. The median loan was $785,800. It ranks number 173 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 $308,850 and $1,247,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Texas is the largest state (100% of loans). Loans appear in only 1 states, which points to a regional lender.
- Industry concentration. Fitness and Recreational Sports Centers is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 534 SBA 7(a) loans of any purpose since FY2020, totaling $330M. 69% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 22% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 2.5% charged off, 29% lower than the 3.5% national average.
Frost Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $3.2M | $302,700 | |
| FY2019 | 12 | $9.6M | $629,150 | |
| FY2020 | 13 | $14.4M | $880,000 | |
| FY2021 | 6 | $10M | $1,541,500 | |
| FY2022 | 4 | $6.5M | $1,720,000 | |
| FY2023 | 2 | $2.7M | $1,331,000 | |
| FY2024 | 2 | $2.8M | $1,417,000 | |
| FY2025 | 2 | $3.4M | $1,691,000 | |
| FY2026 | 1 | $250K | $250,000 |
How often do these acquisition loans fail?
Of the 40 Frost 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 2.5% by loan count and 5.2% by dollars. 19 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 Frost Bank is 29% lower 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 51 | 100.0% | $52.8M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness and Recreational Sports Centers | 4 | 7.8% | $3.6M | |
| 2 | Beauty Salons | 4 | 7.8% | $1.7M | |
| 3 | Testing Laboratories and Services | 3 | 5.9% | $858K | |
| 4 | Limited-Service Restaurants | 2 | 3.9% | $3.2M | |
| 5 | Drinking Places (Alcoholic Beverages) | 2 | 3.9% | $2.7M | |
| 6 | Tire Dealers | 2 | 3.9% | $2.3M | |
| 7 | General Automotive Repair | 2 | 3.9% | $2.1M | |
| 8 | All Other Personal Services | 2 | 3.9% | $2.1M | |
| 9 | Full-Service Restaurants | 2 | 3.9% | $2M | |
| 10 | Landscape Architectural Services | 2 | 3.9% | $1.9M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fastest Labs | 3 | 5.9% | $459K | |
| 2 | Petland | 1 | 2.0% | $1.8M | |
| 3 | Meineke Car Care Center | 1 | 2.0% | $1.1M | |
| 4 | Dairy Queen | 1 | 2.0% | $830K | |
| 5 | 1-800-Radiator & A/C | 1 | 2.0% | $800K | |
| 6 | WaveMAX Laundry | 1 | 2.0% | $250K | |
| 7 | Anytime Fitness | 1 | 2.0% | $178K |
Questions buyers ask
Does Frost Bank make SBA acquisition loans?
Yes. Frost Bank approved 51 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 173 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 Frost Bank's acquisition loans?
The median was $785,800, with the middle half between $308,850 and $1,247,500. The national median is $645,250, so this lender's typical loan is 22% higher than the national figure.
Which states does Frost Bank lend in?
Texas (51). Its loans appear in 1 states, so it is closer to a regional lender.
Which industries does Frost Bank finance?
Fitness and Recreational Sports Centers (4), Beauty Salons (4), Testing Laboratories and Services (3), Limited-Service Restaurants (2), Drinking Places (Alcoholic Beverages) (2). The top industry is 8% of its acquisition loans.
How have Frost Bank's acquisition loans performed?
Of 40 loans approved FY2018 to FY2021: 2.5% charged off, 29% lower than 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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Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- Texas acquisitions
- Fitness and Recreational Sports Centers
- Beauty Salons
- Testing Laboratories and Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Frost Bank.