Meridian Bank: SBA business acquisition lending record
Meridian Bank (home state PA) approved 79 SBA 7(a) loans to buy existing businesses since FY2018, totaling $104M. The median loan was $610,000. It ranks number 121 of 280 lenders by count and made 0.2% 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 $362,500 and $2,090,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Pennsylvania is the largest state (49% of loans). Loans appear in only 10 states, which points to a regional lender.
- Industry concentration. Plumbing, Heating, and Air-Conditioning Contractors is 5% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 696 SBA 7(a) loans of any purpose since FY2020, totaling $670M. 72% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 8% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2019 to FY2021: 2.9% charged off, 19% lower than the 3.5% national average.
Meridian Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 14 | $20M | $883,000 | |
| FY2020 | 6 | $14.1M | $2,399,000 | |
| FY2021 | 15 | $22.5M | $515,000 | |
| FY2022 | 2 | $1.5M | $732,500 | |
| FY2023 | 3 | $838K | $310,000 | |
| FY2024 | 10 | $9.8M | $450,000 | |
| FY2025 | 25 | $33.5M | $1,250,000 | |
| FY2026 | 4 | $2.3M | $567,500 |
How often do these acquisition loans fail?
Of the 35 Meridian Bank acquisition loans approved from FY2019 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 2.9% by loan count and 0.8% by dollars. 14 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 Meridian Bank is 19% 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 39 | 49.4% | $50.1M | |
| 2 | New Jersey | 17 | 21.5% | $24.4M | |
| 3 | Delaware | 5 | 6.3% | $5.6M | |
| 4 | Maryland | 5 | 6.3% | $4.6M | |
| 5 | California | 3 | 3.8% | $7.4M | |
| 6 | Tennessee | 3 | 3.8% | $2.7M | |
| 7 | Florida | 3 | 3.8% | $1.9M | |
| 8 | North Carolina | 2 | 2.5% | $5.1M | |
| 9 | Colorado | 1 | 1.3% | $2.2M | |
| 10 | Georgia | 1 | 1.3% | $445K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Plumbing, Heating, and Air-Conditioning Contractors | 4 | 5.1% | $8.5M | |
| 2 | Commercial Printing (except Screen and Books) | 4 | 5.1% | $6.8M | |
| 3 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 5.1% | $1.5M | |
| 4 | Child Care Services | 3 | 3.8% | $4M | |
| 5 | All Other Personal Services | 3 | 3.8% | $4M | |
| 6 | General Automotive Repair | 3 | 3.8% | $2M | |
| 7 | Landscaping Services | 2 | 2.5% | $6.4M | |
| 8 | Carpet and Upholstery Cleaning Services | 2 | 2.5% | $6.2M | |
| 9 | Machine Shops | 2 | 2.5% | $4.1M | |
| 10 | All Other Support Services | 2 | 2.5% | $3.5M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Servpro | 2 | 2.5% | $6.2M | |
| 2 | Sleep Inn | 1 | 1.3% | $3.2M | |
| 3 | The Goddard School | 1 | 1.3% | $1.7M | |
| 4 | Kiddie Academy | 1 | 1.3% | $477K | |
| 5 | Interim HealthCare | 1 | 1.3% | $309K |
Questions buyers ask
Does Meridian Bank make SBA acquisition loans?
Yes. Meridian Bank approved 79 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 121 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 Meridian Bank's acquisition loans?
The median was $610,000, with the middle half between $362,500 and $2,090,500. The national median is $645,250, so this lender's typical loan is 5% lower than the national figure.
Which states does Meridian Bank lend in?
Pennsylvania (39), New Jersey (17), Delaware (5), Maryland (5), California (3), Tennessee (3). Its loans appear in 10 states, so it is closer to a regional lender.
Which industries does Meridian Bank finance?
Plumbing, Heating, and Air-Conditioning Contractors (4), Commercial Printing (except Screen and Books) (4), Drycleaning and Laundry Services (except Coin-Operated) (4), Child Care Services (3), All Other Personal Services (3). The top industry is 5% of its acquisition loans.
How have Meridian Bank's acquisition loans performed?
Of 35 loans approved FY2019 to FY2021: 2.9% charged off, 19% lower 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.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Pennsylvania acquisitions
- New Jersey acquisitions
- Delaware acquisitions
- Plumbing, Heating, and Air-Conditioning Contractors
- Commercial Printing (except Screen and Books)
- Drycleaning and Laundry Services (except Coin-Operated)
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Meridian Bank.