Heritage Bank Inc: SBA business acquisition lending record
Heritage Bank Inc (home state KY) approved 56 SBA 7(a) loans to buy existing businesses since FY2018, totaling $71.8M. The median loan was $870,000. It ranks number 158 of 280 lenders by count and made 0.1% 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 $677,250 and $1,363,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Kentucky is the largest state (16% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 16% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 587 SBA 7(a) loans of any purpose since FY2020, totaling $298M. 77% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 9% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Too few of its loans are old enough to measure a charge-off rate.
Heritage Bank Inc acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $300K | $300,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $1.4M | $1,360,000 | |
| FY2022 | 1 | $436K | $435,500 | |
| FY2023 | 7 | $5.1M | $689,000 | |
| FY2024 | 10 | $8.6M | $736,500 | |
| FY2025 | 16 | $22.6M | $890,500 | |
| FY2026 | 20 | $33.4M | $1,092,500 |
How often do these acquisition loans fail?
Fewer than 20 Heritage Bank Inc acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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 | Kentucky | 9 | 16.1% | $20.1M | |
| 2 | Ohio | 8 | 14.3% | $7.7M | |
| 3 | Texas | 4 | 7.1% | $4.4M | |
| 4 | South Dakota | 4 | 7.1% | $4.4M | |
| 5 | California | 4 | 7.1% | $4.1M | |
| 6 | New Jersey | 3 | 5.4% | $5.1M | |
| 7 | Louisiana | 2 | 3.6% | $3.7M | |
| 8 | Colorado | 2 | 3.6% | $2.6M | |
| 9 | Washington | 2 | 3.6% | $2.2M | |
| 10 | Utah | 2 | 3.6% | $1.9M | |
| 11 | North Carolina | 2 | 3.6% | $1.8M | |
| 12 | Virginia | 2 | 3.6% | $1.8M | |
| 13 | Mississippi | 2 | 3.6% | $1.8M | |
| 14 | Maryland | 2 | 3.6% | $1.1M | |
| 15 | New Mexico | 1 | 1.8% | $2.4M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 9 | 16.1% | $10.4M | |
| 2 | Solid Waste Collection | 3 | 5.4% | $3.5M | |
| 3 | Machine Shops | 3 | 5.4% | $1.9M | |
| 4 | General Automotive Repair | 3 | 5.4% | $1.5M | |
| 5 | Sports and Recreation Instruction | 2 | 3.6% | $6.1M | |
| 6 | Offices of Chiropractors | 2 | 3.6% | $3.7M | |
| 7 | Commercial Screen Printing | 2 | 3.6% | $1.8M | |
| 8 | Carpet and Upholstery Cleaning Services | 2 | 3.6% | $943K | |
| 9 | Landscape Architectural Services | 1 | 1.8% | $5M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Burn Boot Camp Fitness | 1 | 1.8% | $1.1M | |
| 2 | Crumbl | 1 | 1.8% | $905K | |
| 3 | Huntington Learning Center | 1 | 1.8% | $720K | |
| 4 | Meineke Car Care Center | 1 | 1.8% | $436K |
Questions buyers ask
Does Heritage Bank Inc make SBA acquisition loans?
Yes. Heritage Bank Inc approved 56 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 158 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 Inc's acquisition loans?
The median was $870,000, with the middle half between $677,250 and $1,363,750. The national median is $645,250, so this lender's typical loan is 35% higher than the national figure.
Which states does Heritage Bank Inc lend in?
Kentucky (9), Ohio (8), Texas (4), South Dakota (4), California (4), New Jersey (3). Its loans span at least 15 states.
Which industries does Heritage Bank Inc finance?
Full-Service Restaurants (9), Solid Waste Collection (3), Machine Shops (3), General Automotive Repair (3), Sports and Recreation Instruction (2). The top industry is 16% of its acquisition loans.
How have Heritage Bank Inc's acquisition loans performed?
Fewer than 20 of this lender's loans are old enough to measure. The national benchmark is 3.5% for the FY2018 to FY2021 cohort.
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Related
- Kentucky acquisitions
- Ohio acquisitions
- Texas acquisitions
- Full-Service Restaurants
- Solid Waste Collection
- Machine Shops
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Heritage Bank Inc.