Leader Bank, National Association: SBA business acquisition lending record
Leader Bank, National Association (home state MA) approved 49 SBA 7(a) loans to buy existing businesses since FY2018, totaling $31.4M. The median loan was $142,000. It ranks number 181 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $80,100 and $393,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Massachusetts is the largest state (71% of loans). Loans appear in only 11 states, which points to a regional lender.
- Industry concentration. Fuel Dealers is 22% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 250 SBA 7(a) loans of any purpose since FY2020, totaling $132M. 96% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 16% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 3.1% charged off, 11% lower than the 3.5% national average.
Leader Bank, National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 10 | $1.4M | $125,000 | |
| FY2019 | 6 | $881K | $137,500 | |
| FY2020 | 1 | $184K | $184,000 | |
| FY2021 | 15 | $956K | $40,000 | |
| FY2022 | 2 | $3.2M | $1,580,000 | |
| FY2023 | 2 | $529K | $264,400 | |
| FY2024 | 4 | $6M | $985,000 | |
| FY2025 | 7 | $14M | $2,100,000 | |
| FY2026 | 2 | $4.4M | $2,184,000 |
How often do these acquisition loans fail?
Of the 32 Leader Bank, National Association acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 3.1% by loan count and 3.6% by dollars. 18 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 Leader Bank, National Association is 11% lower 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 | Massachusetts | 35 | 71.4% | $13.7M | |
| 2 | Rhode Island | 3 | 6.1% | $578K | |
| 3 | New Hampshire | 3 | 6.1% | $245K | |
| 4 | North Carolina | 1 | 2.0% | $4M | |
| 5 | Texas | 1 | 2.0% | $4M | |
| 6 | Florida | 1 | 2.0% | $3.4M | |
| 7 | Colorado | 1 | 2.0% | $3M | |
| 8 | Arizona | 1 | 2.0% | $1.5M | |
| 9 | Washington | 1 | 2.0% | $636K | |
| 10 | New Jersey | 1 | 2.0% | $348K | |
| 11 | Connecticut | 1 | 2.0% | $150K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fuel Dealers | 11 | 22.4% | $629K | |
| 2 | Beer, Wine, and Liquor Retailers | 4 | 8.2% | $2.2M | |
| 3 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 8.2% | $363K | |
| 4 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 3 | 6.1% | $4.5M | |
| 5 | Full-Service Restaurants | 3 | 6.1% | $779K | |
| 6 | Convenience Retailers | 3 | 6.1% | $340K | |
| 7 | Home Health Care Services | 2 | 4.1% | $2.5M | |
| 8 | Administrative Management and General Management Consulting Services | 1 | 2.0% | $4M | |
| 9 | Landscaping Services | 1 | 2.0% | $3.5M | |
| 10 | RV (Recreational Vehicle) Parks and Campgrounds | 1 | 2.0% | $3.4M |
That draft favors the seller. We review it for the buyer, line by line.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 2 | 4.1% | $334K | |
| 2 | Econo Lodge | 1 | 2.0% | $2.1M | |
| 3 | Home Instead | 1 | 2.0% | $1.5M | |
| 4 | Kumon | 1 | 2.0% | $338K | |
| 5 | The Little Gym | 1 | 2.0% | $92K | |
| 6 | Subway | 1 | 2.0% | $50K |
Questions buyers ask
Does Leader Bank, National Association make SBA acquisition loans?
Yes. Leader Bank, National Association approved 49 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 181 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 Leader Bank, National Association's acquisition loans?
The median was $142,000, with the middle half between $80,100 and $393,000. The national median is $645,250, so this lender's typical loan is 78% lower than the national figure.
Which states does Leader Bank, National Association lend in?
Massachusetts (35), Rhode Island (3), New Hampshire (3), North Carolina (1), Texas (1), Florida (1). Its loans appear in 11 states, so it is closer to a regional lender.
Which industries does Leader Bank, National Association finance?
Fuel Dealers (11), Beer, Wine, and Liquor Retailers (4), Drycleaning and Laundry Services (except Coin-Operated) (4), Supermarkets and Other Grocery Retailers (except Convenience Retailers) (3), Full-Service Restaurants (3). The top industry is 22% of its acquisition loans.
How have Leader Bank, National Association's acquisition loans performed?
Of 32 loans approved FY2018 to FY2021: 3.1% charged off, 11% lower 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.
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Related
- Massachusetts acquisitions
- Rhode Island acquisitions
- New Hampshire acquisitions
- Fuel Dealers
- Beer, Wine, and Liquor Retailers
- Drycleaning and Laundry Services (except Coin-Operated)
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Leader Bank, National Association.