Harborstone CU: SBA business acquisition lending record
Harborstone CU (home state WA) approved 82 SBA 7(a) loans to buy existing businesses since FY2018, totaling $75.8M. The median loan was $536,650. It ranks number 116 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 $298,950 and $997,800. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Washington is the largest state (84% of loans). Loans appear in only 3 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 15% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 196 SBA 7(a) loans of any purpose since FY2020, totaling $165M. 87% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 5% 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.
Harborstone CU acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $3.2M | $335,000 | |
| FY2019 | 9 | $5.6M | $420,700 | |
| FY2020 | 10 | $10.6M | $732,000 | |
| FY2021 | 10 | $17.5M | $1,191,250 | |
| FY2022 | 11 | $16.2M | $906,000 | |
| FY2023 | 9 | $6.4M | $321,000 | |
| FY2024 | 6 | $3.1M | $503,000 | |
| FY2025 | 10 | $3.4M | $273,850 | |
| FY2026 | 10 | $9.8M | $603,800 |
How often do these acquisition loans fail?
Of the 36 Harborstone CU acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 8.3% by loan count and 1.8% by dollars. 11 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 Harborstone CU 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Washington | 69 | 84.1% | $58.5M | |
| 2 | Oregon | 9 | 11.0% | $6.9M | |
| 3 | Alaska | 4 | 4.9% | $10.4M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 12 | 14.6% | $7.2M | |
| 2 | Limited-Service Restaurants | 7 | 8.5% | $1.8M | |
| 3 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | 3.7% | $7M | |
| 4 | Convenience Retailers | 3 | 3.7% | $809K | |
| 5 | Hotels (except Casino Hotels) and Motels | 2 | 2.4% | $2.2M | |
| 6 | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers | 2 | 2.4% | $1.3M | |
| 7 | Child Care Services | 2 | 2.4% | $1.2M | |
| 8 | Other Management Consulting Services | 2 | 2.4% | $1M | |
| 9 | Landscaping Services | 2 | 2.4% | $817K | |
| 10 | Offices of Lawyers | 2 | 2.4% | $730K |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Signs by Tomorrow | 1 | 1.2% | $423K |
Questions buyers ask
Does Harborstone CU make SBA acquisition loans?
Yes. Harborstone CU approved 82 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 116 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 Harborstone CU's acquisition loans?
The median was $536,650, with the middle half between $298,950 and $997,800. The national median is $645,250, so this lender's typical loan is 17% lower than the national figure.
Which states does Harborstone CU lend in?
Washington (69), Oregon (9), Alaska (4). Its loans appear in 3 states, so it is closer to a regional lender.
Which industries does Harborstone CU finance?
Full-Service Restaurants (12), Limited-Service Restaurants (7), Plumbing, Heating, and Air-Conditioning Contractors (3), Convenience Retailers (3), Hotels (except Casino Hotels) and Motels (2). The top industry is 15% of its acquisition loans.
How have Harborstone CU's acquisition loans performed?
Of 36 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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- Washington acquisitions
- Oregon acquisitions
- Alaska acquisitions
- Full-Service Restaurants
- Limited-Service Restaurants
- Plumbing, Heating, and Air-Conditioning Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Harborstone CU.