Heritage Bank: SBA business acquisition lending record
Heritage Bank (home state WA) approved 110 SBA 7(a) loans to buy existing businesses since FY2018, totaling $98.1M. The median loan was $496,500. It ranks number 91 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 $238,750 and $1,232,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Washington is the largest state (89% of loans). Loans appear in only 4 states, which points to a regional lender.
- Industry concentration. Offices of Lawyers is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 267 SBA 7(a) loans of any purpose since FY2020, totaling $173M. 76% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 13% 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.
Heritage Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 8 | $4.7M | $430,000 | |
| FY2019 | 23 | $24.3M | $493,000 | |
| FY2020 | 10 | $5M | $381,000 | |
| FY2021 | 18 | $16.3M | $652,000 | |
| FY2022 | 7 | $8.2M | $941,000 | |
| FY2023 | 11 | $11.8M | $500,000 | |
| FY2024 | 11 | $5.8M | $450,000 | |
| FY2025 | 11 | $9.8M | $360,000 | |
| FY2026 | 11 | $12.3M | $502,500 |
How often do these acquisition loans fail?
Of the 59 Heritage 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. 34 have already been paid in full.
For comparison, Heritage 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.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAll 50 states. Free consultation.
States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Washington | 98 | 89.1% | $85.7M | |
| 2 | Oregon | 10 | 9.1% | $10.5M | |
| 3 | Kansas | 1 | 0.9% | $1.4M | |
| 4 | Nebraska | 1 | 0.9% | $516K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Offices of Lawyers | 11 | 10.0% | $7.5M | |
| 2 | Full-Service Restaurants | 8 | 7.3% | $5.7M | |
| 3 | Limited-Service Restaurants | 5 | 4.5% | $1.9M | |
| 4 | Offices of Certified Public Accountants | 4 | 3.6% | $4.3M | |
| 5 | Offices of Real Estate Agents and Brokers | 4 | 3.6% | $2.6M | |
| 6 | Offices of Physical, Occupational and Speech Therapists, and Audiologists | 4 | 3.6% | $2.3M | |
| 7 | Residential Remodelers | 3 | 2.7% | $1.4M | |
| 8 | Commercial Printing (except Screen and Books) | 3 | 2.7% | $1.2M | |
| 9 | Plumbing, Heating, and Air-Conditioning Contractors | 2 | 1.8% | $6.4M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Coldwell Banker Commercial | 3 | 2.7% | $664K | |
| 2 | Grease Monkey | 2 | 1.8% | $2.6M | |
| 3 | Chevron | 1 | 0.9% | $350K | |
| 4 | Fitness Together | 1 | 0.9% | $300K | |
| 5 | Subway | 1 | 0.9% | $252K | |
| 6 | Honda Powersports Sales and Service Agreements | 1 | 0.9% | $250K | |
| 7 | True Value | 1 | 0.9% | $235K |
Questions buyers ask
Does Heritage Bank make SBA acquisition loans?
Yes. Heritage Bank approved 110 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 91 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 Heritage Bank's acquisition loans?
The median was $496,500, with the middle half between $238,750 and $1,232,750. The national median is $645,250, so this lender's typical loan is 23% lower than the national figure.
Which states does Heritage Bank lend in?
Washington (98), Oregon (10), Kansas (1), Nebraska (1). Its loans appear in 4 states, so it is closer to a regional lender.
Which industries does Heritage Bank finance?
Offices of Lawyers (11), Full-Service Restaurants (8), Limited-Service Restaurants (5), Offices of Certified Public Accountants (4), Offices of Real Estate Agents and Brokers (4). The top industry is 10% of its acquisition loans.
How have Heritage Bank's acquisition loans performed?
Of 59 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.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAll 50 states. Free consultation.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- Washington acquisitions
- Oregon acquisitions
- Kansas acquisitions
- Offices of Lawyers
- Full-Service Restaurants
- Limited-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Heritage Bank.