Hanmi Bank: SBA business acquisition lending record
Hanmi Bank (home state CA) approved 870 SBA 7(a) loans to buy existing businesses since FY2018, totaling $732M. The median loan was $550,000. It ranks number 4 of 280 lenders by count and made 1.8% 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 $345,000 and $1,000,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Colorado is the largest state (33% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Beer, Wine, and Liquor Retailers is 38% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 1,216 SBA 7(a) loans of any purpose since FY2020, totaling $1.1B. 93% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 8% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.9% charged off, 45% lower than the 3.5% national average.
Hanmi Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 76 | $46.3M | $465,000 | |
| FY2019 | 115 | $80.1M | $432,000 | |
| FY2020 | 101 | $73.4M | $522,000 | |
| FY2021 | 71 | $50.8M | $480,000 | |
| FY2022 | 76 | $87.1M | $700,500 | |
| FY2023 | 90 | $89.7M | $561,250 | |
| FY2024 | 91 | $80.6M | $550,000 | |
| FY2025 | 123 | $108M | $685,000 | |
| FY2026 | 127 | $115M | $614,000 |
How often do these acquisition loans fail?
Of the 363 Hanmi Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 7 have been charged off by the SBA, a rate of 1.9% by loan count and 1.1% by dollars. 200 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 Hanmi Bank is 45% 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 | Colorado | 289 | 33.2% | $257M | |
| 2 | California | 171 | 19.7% | $121M | |
| 3 | Washington | 146 | 16.8% | $120M | |
| 4 | Maryland | 60 | 6.9% | $62.4M | |
| 5 | Texas | 60 | 6.9% | $51.4M | |
| 6 | Georgia | 31 | 3.6% | $28.4M | |
| 7 | New York | 29 | 3.3% | $25.2M | |
| 8 | Virginia | 27 | 3.1% | $23.1M | |
| 9 | District of Columbia | 25 | 2.9% | $19.5M | |
| 10 | New Jersey | 8 | 0.9% | $5.2M | |
| 11 | Oregon | 8 | 0.9% | $2.9M | |
| 12 | Illinois | 3 | 0.3% | $2.9M | |
| 13 | Wyoming | 2 | 0.2% | $2M | |
| 14 | Florida | 2 | 0.2% | $1.8M | |
| 15 | North Carolina | 2 | 0.2% | $638K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 328 | 37.7% | $269M | |
| 2 | Full-Service Restaurants | 148 | 17.0% | $77.4M | |
| 3 | Limited-Service Restaurants | 91 | 10.5% | $37.2M | |
| 4 | Convenience Retailers | 51 | 5.9% | $36.2M | |
| 5 | Gasoline Stations with Convenience Stores | 37 | 4.3% | $64.2M | |
| 6 | Hotels (except Casino Hotels) and Motels | 32 | 3.7% | $69.6M | |
| 7 | Coin-Operated Laundries and Drycleaners | 31 | 3.6% | $34.1M | |
| 8 | Drycleaning and Laundry Services (except Coin-Operated) | 30 | 3.4% | $18.9M | |
| 9 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 29 | 3.3% | $30.5M | |
| 10 | Snack and Nonalcoholic Beverage Bars | 25 | 2.9% | $16.9M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | It's Boba Time | 7 | 0.8% | $4.4M | |
| 2 | Wilson Oil | 4 | 0.5% | $7.4M | |
| 3 | Super 8 | 4 | 0.5% | $7.1M | |
| 4 | World Fuel Services | 4 | 0.5% | $6.5M | |
| 5 | Rodeway Inn | 3 | 0.3% | $8.1M | |
| 6 | Christensen Inc. | 3 | 0.3% | $2.4M | |
| 7 | American Deli | 3 | 0.3% | $2.3M | |
| 8 | Days Inn | 2 | 0.2% | $6.8M | |
| 9 | Travelodge | 2 | 0.2% | $6.7M | |
| 10 | Jackson Food Stores | 2 | 0.2% | $6.2M |
Questions buyers ask
Does Hanmi Bank make SBA acquisition loans?
Yes. Hanmi Bank approved 870 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 4 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 Hanmi Bank's acquisition loans?
The median was $550,000, with the middle half between $345,000 and $1,000,000. The national median is $645,250, so this lender's typical loan is 15% lower than the national figure.
Which states does Hanmi Bank lend in?
Colorado (289), California (171), Washington (146), Maryland (60), Texas (60), Georgia (31). Its loans span at least 15 states.
Which industries does Hanmi Bank finance?
Beer, Wine, and Liquor Retailers (328), Full-Service Restaurants (148), Limited-Service Restaurants (91), Convenience Retailers (51), Gasoline Stations with Convenience Stores (37). The top industry is 38% of its acquisition loans.
How have Hanmi Bank's acquisition loans performed?
Of 363 loans approved FY2018 to FY2021: 1.9% charged off, 45% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
SBA 7(a) acquisitions, nationwide. Free consultation.
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Related
- Colorado acquisitions
- California acquisitions
- Washington acquisitions
- Beer, Wine, and Liquor Retailers
- Full-Service Restaurants
- Limited-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Hanmi Bank.