Hanover Community Bank: SBA business acquisition lending record
Hanover Community Bank (home state NY) approved 78 SBA 7(a) loans to buy existing businesses since FY2018, totaling $166M. The median loan was $2,015,000. It ranks number 125 of 280 lenders by count and made 0.2% of all SBA acquisition loans nationally.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $740,500 and $3,000,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. New Jersey is the largest state (29% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 42% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 502 SBA 7(a) loans of any purpose since FY2020, totaling $592M. 88% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 28% 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.
Hanover Community Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $12.5M | $1,600,000 | |
| FY2019 | 15 | $31.8M | $2,040,000 | |
| FY2020 | 9 | $5.5M | $702,000 | |
| FY2021 | 8 | $14.5M | $2,015,000 | |
| FY2022 | 4 | $14.9M | $4,658,500 | |
| FY2023 | 4 | $9.4M | $2,261,000 | |
| FY2024 | 9 | $30.3M | $3,726,000 | |
| FY2025 | 15 | $36.1M | $2,191,000 | |
| FY2026 | 7 | $10.5M | $991,000 |
How often do these acquisition loans fail?
Of the 39 Hanover Community Bank 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. 23 have already been paid in full.
For comparison, Hanover Community Bank 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 | New Jersey | 23 | 29.5% | $39.3M | |
| 2 | New York | 15 | 19.2% | $31.4M | |
| 3 | Pennsylvania | 9 | 11.5% | $13.8M | |
| 4 | Connecticut | 5 | 6.4% | $8.9M | |
| 5 | California | 4 | 5.1% | $5.1M | |
| 6 | Indiana | 2 | 2.6% | $8.7M | |
| 7 | Maryland | 2 | 2.6% | $7.5M | |
| 8 | Florida | 2 | 2.6% | $6.5M | |
| 9 | Louisiana | 2 | 2.6% | $4.9M | |
| 10 | Arkansas | 2 | 2.6% | $3.8M | |
| 11 | Maine | 1 | 1.3% | $5M | |
| 12 | North Carolina | 1 | 1.3% | $5M | |
| 13 | Texas | 1 | 1.3% | $5M | |
| 14 | Utah | 1 | 1.3% | $4M | |
| 15 | Georgia | 1 | 1.3% | $3.2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 33 | 42.3% | $89.1M | |
| 2 | Beer, Wine, and Liquor Retailers | 8 | 10.3% | $7.5M | |
| 3 | Gasoline Stations with Convenience Stores | 3 | 3.8% | $8.8M | |
| 4 | General Freight Trucking, Local | 3 | 3.8% | $7.2M | |
| 5 | Assisted Living Facilities for the Elderly | 3 | 3.8% | $5.6M | |
| 6 | Limited-Service Restaurants | 3 | 3.8% | $2.3M | |
| 7 | Full-Service Restaurants | 2 | 2.6% | $5.7M | |
| 8 | Automotive Body, Paint, and Interior Repair and Maintenance | 2 | 2.6% | $2.3M | |
| 9 | Snack and Nonalcoholic Beverage Bars | 2 | 2.6% | $958K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Super 8 | 4 | 5.1% | $10M | |
| 2 | Red Roof Inn | 3 | 3.8% | $12.5M | |
| 3 | Quality Inn | 3 | 3.8% | $8.3M | |
| 4 | Motel 6 | 2 | 2.6% | $3.2M | |
| 5 | Candlewood Suites | 1 | 1.3% | $5M | |
| 6 | Ramada | 1 | 1.3% | $5M | |
| 7 | Hampton Inn & Suites | 1 | 1.3% | $5M | |
| 8 | Baymont | 1 | 1.3% | $3.7M | |
| 9 | Dunkin' | 1 | 1.3% | $980K | |
| 10 | Maaco | 1 | 1.3% | $860K |
Questions buyers ask
Does Hanover Community Bank make SBA acquisition loans?
Yes. Hanover Community Bank approved 78 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 125 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 Hanover Community Bank's acquisition loans?
The median was $2,015,000, with the middle half between $740,500 and $3,000,000. The national median is $645,250, so this lender's typical loan is 212% higher than the national figure.
Which states does Hanover Community Bank lend in?
New Jersey (23), New York (15), Pennsylvania (9), Connecticut (5), California (4), Indiana (2). Its loans span at least 15 states.
Which industries does Hanover Community Bank finance?
Hotels (except Casino Hotels) and Motels (33), Beer, Wine, and Liquor Retailers (8), Gasoline Stations with Convenience Stores (3), General Freight Trucking, Local (3), Assisted Living Facilities for the Elderly (3). The top industry is 42% of its acquisition loans.
How have Hanover Community Bank's acquisition loans performed?
Of 39 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.
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Related
- New Jersey acquisitions
- New York acquisitions
- Pennsylvania acquisitions
- Hotels (except Casino Hotels) and Motels
- Beer, Wine, and Liquor Retailers
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Hanover Community Bank.