Mechanics and Farmers Bank: SBA business acquisition lending record
Mechanics and Farmers Bank (home state NC) approved 60 SBA 7(a) loans to buy existing businesses since FY2018, totaling $43.2M. The median loan was $428,750. It ranks number 147 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 $260,875 and $850,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. North Carolina is the largest state (17% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Insurance Agencies and Brokerages is 57% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 92 SBA 7(a) loans of any purpose since FY2020, totaling $57.3M. 37% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 3.6% charged off, in line with the 3.5% national average.
Mechanics and Farmers Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $1.5M | $758,000 | |
| FY2019 | 6 | $1.3M | $218,000 | |
| FY2020 | 13 | $6.6M | $333,000 | |
| FY2021 | 7 | $11M | $1,234,000 | |
| FY2022 | 4 | $5.3M | $880,250 | |
| FY2023 | 5 | $4.3M | $761,000 | |
| FY2024 | 4 | $5.3M | $577,000 | |
| FY2025 | 15 | $6.4M | $338,900 | |
| FY2026 | 4 | $1.4M | $216,000 |
How often do these acquisition loans fail?
Of the 28 Mechanics and Farmers Bank 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 3.6% by loan count and 0.0% by dollars. 16 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 Mechanics and Farmers Bank is in line with 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 10 | 16.7% | $5M | |
| 2 | Florida | 6 | 10.0% | $1.4M | |
| 3 | Georgia | 5 | 8.3% | $8M | |
| 4 | Virginia | 5 | 8.3% | $1.9M | |
| 5 | Indiana | 4 | 6.7% | $1.2M | |
| 6 | Kentucky | 3 | 5.0% | $1.8M | |
| 7 | Ohio | 3 | 5.0% | $1M | |
| 8 | Michigan | 2 | 3.3% | $4.6M | |
| 9 | Texas | 2 | 3.3% | $3.2M | |
| 10 | Nevada | 2 | 3.3% | $2.9M | |
| 11 | Oklahoma | 2 | 3.3% | $1.7M | |
| 12 | Tennessee | 2 | 3.3% | $1.1M | |
| 13 | South Carolina | 2 | 3.3% | $915K | |
| 14 | Oregon | 2 | 3.3% | $319K | |
| 15 | Washington | 1 | 1.7% | $2.7M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Insurance Agencies and Brokerages | 34 | 56.7% | $27.7M | |
| 2 | Snack and Nonalcoholic Beverage Bars | 3 | 5.0% | $759K | |
| 3 | General Automotive Repair | 2 | 3.3% | $774K | |
| 4 | Limited-Service Restaurants | 2 | 3.3% | $660K | |
| 5 | General Freight Trucking, Local | 1 | 1.7% | $4M | |
| 6 | Other Computer Related Services | 1 | 1.7% | $1.5M | |
| 7 | Furniture Merchant Wholesalers | 1 | 1.7% | $880K | |
| 8 | Sign Manufacturing | 1 | 1.7% | $800K | |
| 9 | All Other Support Services | 1 | 1.7% | $734K |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Smoothie King | 2 | 3.3% | $420K | |
| 2 | Signarama | 1 | 1.7% | $800K | |
| 3 | Burn Boot Camp Fitness | 1 | 1.7% | $216K | |
| 4 | Domino's Pizza | 1 | 1.7% | $200K |
Questions buyers ask
Does Mechanics and Farmers Bank make SBA acquisition loans?
Yes. Mechanics and Farmers Bank approved 60 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 147 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 Mechanics and Farmers Bank's acquisition loans?
The median was $428,750, with the middle half between $260,875 and $850,000. The national median is $645,250, so this lender's typical loan is 34% lower than the national figure.
Which states does Mechanics and Farmers Bank lend in?
North Carolina (10), Florida (6), Georgia (5), Virginia (5), Indiana (4), Kentucky (3). Its loans span at least 15 states.
Which industries does Mechanics and Farmers Bank finance?
Insurance Agencies and Brokerages (34), Snack and Nonalcoholic Beverage Bars (3), General Automotive Repair (2), Limited-Service Restaurants (2), General Freight Trucking, Local (1). The top industry is 57% of its acquisition loans.
How have Mechanics and Farmers Bank's acquisition loans performed?
Of 28 loans approved FY2018 to FY2021: 3.6% charged off, in line with 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
- Florida acquisitions
- Georgia acquisitions
- Insurance Agencies and Brokerages
- Snack and Nonalcoholic Beverage Bars
- General Automotive Repair
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Mechanics and Farmers Bank.