Merchants Bank of Indiana: SBA business acquisition lending record
Merchants Bank of Indiana (home state IN) approved 185 SBA 7(a) loans to buy existing businesses since FY2018, totaling $238M. The median loan was $813,300. It ranks number 50 of 280 lenders by count and made 0.4% 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 $440,000 and $1,728,200. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Indiana is the largest state (23% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 464 SBA 7(a) loans of any purpose since FY2020, totaling $544M. 91% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 47% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: none charged off, against the 3.5% national average.
Merchants Bank of Indiana acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $365K | $182,500 | |
| FY2019 | 1 | $71K | $70,800 | |
| FY2020 | 7 | $7.4M | $1,150,300 | |
| FY2021 | 37 | $52.6M | $1,293,500 | |
| FY2022 | 31 | $33.1M | $700,000 | |
| FY2023 | 32 | $37.2M | $728,300 | |
| FY2024 | 13 | $13.1M | $619,000 | |
| FY2025 | 32 | $50M | $949,950 | |
| FY2026 | 30 | $44.6M | $1,018,500 |
How often do these acquisition loans fail?
Of the 47 Merchants Bank of Indiana acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 20 have already been paid in full.
For comparison, Merchants Bank of Indiana has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Indiana | 42 | 22.7% | $39M | |
| 2 | Illinois | 38 | 20.5% | $63.2M | |
| 3 | Florida | 19 | 10.3% | $17.3M | |
| 4 | Texas | 18 | 9.7% | $24.6M | |
| 5 | Ohio | 8 | 4.3% | $13M | |
| 6 | California | 7 | 3.8% | $9.6M | |
| 7 | Michigan | 7 | 3.8% | $8.3M | |
| 8 | Georgia | 7 | 3.8% | $5.5M | |
| 9 | Wisconsin | 6 | 3.2% | $16.1M | |
| 10 | Kentucky | 5 | 2.7% | $5.8M | |
| 11 | Pennsylvania | 4 | 2.2% | $1.9M | |
| 12 | New York | 3 | 1.6% | $4.2M | |
| 13 | South Carolina | 3 | 1.6% | $2.7M | |
| 14 | Missouri | 2 | 1.1% | $3.6M | |
| 15 | Utah | 2 | 1.1% | $2.6M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 19 | 10.3% | $55.5M | |
| 2 | Private Mail Centers | 19 | 10.3% | $9.7M | |
| 3 | Gasoline Stations with Convenience Stores | 15 | 8.1% | $22.7M | |
| 4 | Limited-Service Restaurants | 10 | 5.4% | $7.4M | |
| 5 | Drycleaning and Laundry Services (except Coin-Operated) | 7 | 3.8% | $3.6M | |
| 6 | Landscaping Services | 6 | 3.2% | $5.3M | |
| 7 | Painting and Wall Covering Contractors | 5 | 2.7% | $5.7M | |
| 8 | Machine Shops | 4 | 2.2% | $7.4M | |
| 9 | Beer, Wine, and Liquor Retailers | 4 | 2.2% | $3.8M | |
| 10 | Child Care Services | 4 | 2.2% | $3.3M |
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 | The UPS Store | 26 | 14.1% | $12.9M | |
| 2 | RhinoShield | 5 | 2.7% | $5.7M | |
| 3 | Subway | 5 | 2.7% | $3.4M | |
| 4 | Comfort Inn | 2 | 1.1% | $7.9M | |
| 5 | Comfort Suites | 2 | 1.1% | $7.6M | |
| 6 | Best Western | 2 | 1.1% | $5M | |
| 7 | Quality Inn | 2 | 1.1% | $4.5M | |
| 8 | Days Inn | 2 | 1.1% | $4.1M | |
| 9 | Super 8 | 2 | 1.1% | $4M | |
| 10 | World Fuel Services | 2 | 1.1% | $3.1M |
Questions buyers ask
Does Merchants Bank of Indiana make SBA acquisition loans?
Yes. Merchants Bank of Indiana approved 185 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 50 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 Merchants Bank of Indiana's acquisition loans?
The median was $813,300, with the middle half between $440,000 and $1,728,200. The national median is $645,250, so this lender's typical loan is 26% higher than the national figure.
Which states does Merchants Bank of Indiana lend in?
Indiana (42), Illinois (38), Florida (19), Texas (18), Ohio (8), California (7). Its loans span at least 15 states.
Which industries does Merchants Bank of Indiana finance?
Hotels (except Casino Hotels) and Motels (19), Private Mail Centers (19), Gasoline Stations with Convenience Stores (15), Limited-Service Restaurants (10), Drycleaning and Laundry Services (except Coin-Operated) (7). The top industry is 10% of its acquisition loans.
How have Merchants Bank of Indiana's acquisition loans performed?
Of 47 loans approved FY2018 to FY2021: none charged off, against the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- Indiana acquisitions
- Illinois acquisitions
- Florida acquisitions
- Hotels (except Casino Hotels) and Motels
- Private Mail Centers
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Merchants Bank of Indiana.