HomeTrust Bank: SBA business acquisition lending record
HomeTrust Bank (home state NC) approved 143 SBA 7(a) loans to buy existing businesses since FY2018, totaling $184M. The median loan was $830,000. It ranks number 68 of 280 lenders by count and made 0.3% 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 $451,250 and $1,623,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. North Carolina is the largest state (31% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 571 SBA 7(a) loans of any purpose since FY2020, totaling $654M. 62% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 27% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 6.3% charged off, 80% higher than the 3.5% national average.
HomeTrust Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $19.2M | $706,500 | |
| FY2019 | 29 | $38.7M | $841,700 | |
| FY2020 | 24 | $39.6M | $1,133,300 | |
| FY2021 | 15 | $19.1M | $1,248,000 | |
| FY2022 | 18 | $20.8M | $777,500 | |
| FY2023 | 12 | $17.6M | $1,323,000 | |
| FY2024 | 15 | $10.2M | $660,000 | |
| FY2025 | 5 | $4.2M | $713,000 | |
| FY2026 | 14 | $14.7M | $649,500 |
How often do these acquisition loans fail?
Of the 79 HomeTrust Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 5 have been charged off by the SBA, a rate of 6.3% by loan count and 3.4% by dollars. 35 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 HomeTrust Bank is 80% 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 44 | 30.8% | $61.2M | |
| 2 | Georgia | 12 | 8.4% | $10.9M | |
| 3 | Florida | 11 | 7.7% | $21.1M | |
| 4 | Texas | 10 | 7.0% | $13.9M | |
| 5 | Virginia | 9 | 6.3% | $8.8M | |
| 6 | South Carolina | 7 | 4.9% | $11.2M | |
| 7 | Colorado | 6 | 4.2% | $6.5M | |
| 8 | Ohio | 6 | 4.2% | $2.4M | |
| 9 | Pennsylvania | 5 | 3.5% | $6.5M | |
| 10 | Illinois | 4 | 2.8% | $2.9M | |
| 11 | New Jersey | 3 | 2.1% | $9M | |
| 12 | Maryland | 3 | 2.1% | $5.4M | |
| 13 | New York | 3 | 2.1% | $4.6M | |
| 14 | California | 3 | 2.1% | $4.3M | |
| 15 | Alabama | 3 | 2.1% | $3M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 11 | 7.7% | $36.6M | |
| 2 | Plumbing, Heating, and Air-Conditioning Contractors | 7 | 4.9% | $11.8M | |
| 3 | Tax Preparation Services | 6 | 4.2% | $9.1M | |
| 4 | Child Care Services | 5 | 3.5% | $5.5M | |
| 5 | Full-Service Restaurants | 5 | 3.5% | $3.6M | |
| 6 | Limited-Service Restaurants | 5 | 3.5% | $2.8M | |
| 7 | All Other Professional, Scientific, and Technical Services | 4 | 2.8% | $6M | |
| 8 | Electrical Contractors and Other Wiring Installation Contractors | 4 | 2.8% | $2.6M | |
| 9 | Custom Computer Programming Services | 3 | 2.1% | $8M | |
| 10 | Assisted Living Facilities for the Elderly | 3 | 2.1% | $5.4M |
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 | Jackson Hewitt Tax Service | 6 | 4.2% | $9.1M | |
| 2 | Red Roof Inn | 2 | 1.4% | $6.7M | |
| 3 | Comfort Inn | 2 | 1.4% | $6.3M | |
| 4 | Midas | 2 | 1.4% | $1.2M | |
| 5 | Enviro-Master Services | 2 | 1.4% | $650K | |
| 6 | Studio 6 | 1 | 0.7% | $4.5M | |
| 7 | Best Western | 1 | 0.7% | $4.3M | |
| 8 | Quality Inn | 1 | 0.7% | $4.2M | |
| 9 | Howard Johnson | 1 | 0.7% | $4.2M | |
| 10 | Microtel Inn & Suites | 1 | 0.7% | $3.7M |
Questions buyers ask
Does HomeTrust Bank make SBA acquisition loans?
Yes. HomeTrust Bank approved 143 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 68 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 HomeTrust Bank's acquisition loans?
The median was $830,000, with the middle half between $451,250 and $1,623,000. The national median is $645,250, so this lender's typical loan is 29% higher than the national figure.
Which states does HomeTrust Bank lend in?
North Carolina (44), Georgia (12), Florida (11), Texas (10), Virginia (9), South Carolina (7). Its loans span at least 15 states.
Which industries does HomeTrust Bank finance?
Hotels (except Casino Hotels) and Motels (11), Plumbing, Heating, and Air-Conditioning Contractors (7), Tax Preparation Services (6), Child Care Services (5), Full-Service Restaurants (5). The top industry is 8% of its acquisition loans.
How have HomeTrust Bank's acquisition loans performed?
Of 79 loans approved FY2018 to FY2021: 6.3% charged off, 80% higher than 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
- North Carolina acquisitions
- Georgia acquisitions
- Florida acquisitions
- Hotels (except Casino Hotels) and Motels
- Plumbing, Heating, and Air-Conditioning Contractors
- Tax Preparation Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by HomeTrust Bank.