Happen Bank: SBA business acquisition lending record
Happen Bank (home state UT) approved 102 SBA 7(a) loans to buy existing businesses since FY2018, totaling $182M. The median loan was $1,366,150. It ranks number 97 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 $732,625 and $2,770,350. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (23% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 350 SBA 7(a) loans of any purpose since FY2020, totaling $479M. 82% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 25% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 8.3% charged off, 137% higher than the 3.5% national average.
Happen Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 30 | $53.6M | $1,398,000 | |
| FY2019 | 17 | $31.4M | $1,830,600 | |
| FY2020 | 11 | $14.7M | $1,235,000 | |
| FY2021 | 14 | $28.5M | $1,436,500 | |
| FY2022 | 4 | $6.4M | $825,500 | |
| FY2023 | 10 | $14.3M | $845,000 | |
| FY2024 | 3 | $4.9M | $1,230,000 | |
| FY2025 | 4 | $2.2M | $586,850 | |
| FY2026 | 9 | $26.4M | $2,601,000 |
How often do these acquisition loans fail?
Of the 72 Happen Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 6 have been charged off by the SBA, a rate of 8.3% by loan count and 10.5% by dollars. 46 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 Happen Bank is 137% higher 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 23 | 22.5% | $41.1M | |
| 2 | Illinois | 9 | 8.8% | $22.7M | |
| 3 | New Jersey | 9 | 8.8% | $14.4M | |
| 4 | California | 8 | 7.8% | $15.9M | |
| 5 | Texas | 7 | 6.9% | $13.2M | |
| 6 | Indiana | 5 | 4.9% | $7.6M | |
| 7 | Colorado | 5 | 4.9% | $4.8M | |
| 8 | Ohio | 4 | 3.9% | $5.6M | |
| 9 | New York | 3 | 2.9% | $8M | |
| 10 | Connecticut | 3 | 2.9% | $7.5M | |
| 11 | Wisconsin | 3 | 2.9% | $5M | |
| 12 | Utah | 3 | 2.9% | $4.2M | |
| 13 | Kansas | 2 | 2.0% | $4.6M | |
| 14 | Arizona | 2 | 2.0% | $3.5M | |
| 15 | Pennsylvania | 2 | 2.0% | $2.1M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 6 | 5.9% | $6.9M | |
| 2 | Home Health Care Services | 5 | 4.9% | $9.5M | |
| 3 | Beer, Wine, and Liquor Retailers | 4 | 3.9% | $4.5M | |
| 4 | Child Care Services | 4 | 3.9% | $2.3M | |
| 5 | Electronic Shopping and Mail-Order Houses | 3 | 2.9% | $11.5M | |
| 6 | Other Computer Related Services | 3 | 2.9% | $8.8M | |
| 7 | Professional and Management Development Training | 3 | 2.9% | $5.4M | |
| 8 | Beauty Salons | 3 | 2.9% | $4.4M | |
| 9 | Fitness and Recreational Sports Centers | 3 | 2.9% | $4.4M | |
| 10 | All Other Amusement and Recreation Industries | 3 | 2.9% | $3.5M |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | FASTSIGNS | 2 | 2.0% | $3.6M | |
| 2 | Great Clips | 2 | 2.0% | $3.6M | |
| 3 | Little Caesars | 2 | 2.0% | $1.3M | |
| 4 | Urban Air Adventure Park | 1 | 1.0% | $3.6M | |
| 5 | European Wax Center | 1 | 1.0% | $3.2M | |
| 6 | Dunkin' | 1 | 1.0% | $2.5M | |
| 7 | Carstar | 1 | 1.0% | $2.4M | |
| 8 | Big O Tires | 1 | 1.0% | $1.6M | |
| 9 | Super 8 | 1 | 1.0% | $1.4M | |
| 10 | Senior Helpers | 1 | 1.0% | $1.1M |
Questions buyers ask
Does Happen Bank make SBA acquisition loans?
Yes. Happen Bank approved 102 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 97 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 Happen Bank's acquisition loans?
The median was $1,366,150, with the middle half between $732,625 and $2,770,350. The national median is $645,250, so this lender's typical loan is 112% higher than the national figure.
Which states does Happen Bank lend in?
Florida (23), Illinois (9), New Jersey (9), California (8), Texas (7), Indiana (5). Its loans span at least 15 states.
Which industries does Happen Bank finance?
Limited-Service Restaurants (6), Home Health Care Services (5), Beer, Wine, and Liquor Retailers (4), Child Care Services (4), Electronic Shopping and Mail-Order Houses (3). The top industry is 6% of its acquisition loans.
How have Happen Bank's acquisition loans performed?
Of 72 loans approved FY2018 to FY2021: 8.3% charged off, 137% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Florida acquisitions
- Illinois acquisitions
- New Jersey acquisitions
- Limited-Service Restaurants
- Home Health Care Services
- Beer, Wine, and Liquor Retailers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Happen Bank.