Lake Michigan CU: SBA business acquisition lending record
Lake Michigan CU (home state MI) approved 58 SBA 7(a) loans to buy existing businesses since FY2018, totaling $74M. The median loan was $812,500. It ranks number 152 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 $480,825 and $1,638,825. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (79% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 7% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 300 SBA 7(a) loans of any purpose since FY2020, totaling $309M. 78% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 14% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2019 to FY2021: 4.7% charged off, 32% higher than the 3.5% national average.
Lake Michigan CU acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 10 | $14.5M | $974,000 | |
| FY2020 | 10 | $13.7M | $775,300 | |
| FY2021 | 23 | $26M | $727,900 | |
| FY2022 | 1 | $712K | $712,400 | |
| FY2023 | 2 | $1.1M | $536,450 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 3 | $3.5M | $1,007,000 | |
| FY2026 | 9 | $14.5M | $1,653,000 |
How often do these acquisition loans fail?
Of the 43 Lake Michigan CU acquisition loans approved from FY2019 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 4.7% by loan count and 6.0% by dollars. 22 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the FY2018 to FY2021 cohort is 3.5%, so Lake Michigan CU is 32% 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
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 4 | 6.9% | $10.6M | |
| 2 | Landscaping Services | 4 | 6.9% | $2M | |
| 3 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | 5.2% | $2.6M | |
| 4 | Beer, Wine, and Liquor Retailers | 2 | 3.4% | $3.8M | |
| 5 | Sign Manufacturing | 2 | 3.4% | $3.6M | |
| 6 | Beauty Salons | 2 | 3.4% | $1.4M | |
| 7 | Tax Preparation Services | 2 | 3.4% | $1.4M | |
| 8 | Sporting Goods Retailers | 2 | 3.4% | $1.1M | |
| 9 | Offices of Certified Public Accountants | 2 | 3.4% | $1.1M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | La Quinta | 2 | 3.4% | $4.8M | |
| 2 | Smartstyle | 2 | 3.4% | $1.4M | |
| 3 | Quality Inn | 1 | 1.7% | $5M | |
| 4 | Little Caesars | 1 | 1.7% | $1.9M | |
| 5 | BrightStar Care | 1 | 1.7% | $755K |
Questions buyers ask
Does Lake Michigan CU make SBA acquisition loans?
Yes. Lake Michigan CU approved 58 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 152 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 Lake Michigan CU's acquisition loans?
The median was $812,500, with the middle half between $480,825 and $1,638,825. The national median is $645,250, so this lender's typical loan is 26% higher than the national figure.
Which states does Lake Michigan CU lend in?
Florida (46), Michigan (12). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does Lake Michigan CU finance?
Hotels (except Casino Hotels) and Motels (4), Landscaping Services (4), Plumbing, Heating, and Air-Conditioning Contractors (3), Beer, Wine, and Liquor Retailers (2), Sign Manufacturing (2). The top industry is 7% of its acquisition loans.
How have Lake Michigan CU's acquisition loans performed?
Of 43 loans approved FY2019 to FY2021: 4.7% charged off, 32% 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.
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Related
- Florida acquisitions
- Michigan acquisitions
- Hotels (except Casino Hotels) and Motels
- Landscaping Services
- Plumbing, Heating, and Air-Conditioning Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Lake Michigan CU.