Midland States Bank: SBA business acquisition lending record
Midland States Bank (home state IL) approved 49 SBA 7(a) loans to buy existing businesses since FY2018, totaling $45.2M. The median loan was $395,000. It ranks number 182 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $200,000 and $1,026,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Illinois is the largest state (67% of loans). Loans appear in only 9 states, which points to a regional lender.
- Industry concentration. Machine Shops is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 151 SBA 7(a) loans of any purpose since FY2020, totaling $81.7M. 45% 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: none charged off, against the 3.5% national average.
Midland States Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $6.6M | $734,000 | |
| FY2019 | 9 | $10.2M | $437,000 | |
| FY2020 | 1 | $1.6M | $1,619,500 | |
| FY2021 | 6 | $2.6M | $167,150 | |
| FY2022 | 4 | $6.2M | $1,615,750 | |
| FY2023 | 7 | $6.2M | $445,100 | |
| FY2024 | 9 | $9.8M | $201,600 | |
| FY2025 | 6 | $1.7M | $299,200 | |
| FY2026 | 2 | $425K | $212,500 |
How often do these acquisition loans fail?
Of the 21 Midland States Bank 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. 12 have already been paid in full.
For comparison, Midland States Bank 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 33 | 67.3% | $30M | |
| 2 | Missouri | 5 | 10.2% | $1.5M | |
| 3 | Ohio | 3 | 6.1% | $3.8M | |
| 4 | Indiana | 2 | 4.1% | $2.9M | |
| 5 | Florida | 2 | 4.1% | $654K | |
| 6 | Pennsylvania | 1 | 2.0% | $3.9M | |
| 7 | Michigan | 1 | 2.0% | $1.6M | |
| 8 | California | 1 | 2.0% | $437K | |
| 9 | Tennessee | 1 | 2.0% | $324K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Machine Shops | 4 | 8.2% | $10.6M | |
| 2 | Hotels (except Casino Hotels) and Motels | 4 | 8.2% | $5.1M | |
| 3 | Limited-Service Restaurants | 3 | 6.1% | $1.1M | |
| 4 | Fitness and Recreational Sports Centers | 3 | 6.1% | $711K | |
| 5 | Precision Turned Product Manufacturing | 2 | 4.1% | $4.5M | |
| 6 | Remediation Services | 2 | 4.1% | $2.9M | |
| 7 | Full-Service Restaurants | 2 | 4.1% | $634K | |
| 8 | Offices of Chiropractors | 2 | 4.1% | $157K | |
| 9 | Home Health Care Services | 1 | 2.0% | $2.6M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Quality Inn | 1 | 2.0% | $4.1M | |
| 2 | General Motors | 1 | 2.0% | $2.4M | |
| 3 | Courtyard by Marriott | 1 | 2.0% | $350K | |
| 4 | Comfort Inn | 1 | 2.0% | $324K | |
| 5 | Beef 'O' Brady's | 1 | 2.0% | $304K | |
| 6 | Subway | 1 | 2.0% | $90K |
Questions buyers ask
Does Midland States Bank make SBA acquisition loans?
Yes. Midland States Bank approved 49 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 182 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 Midland States Bank's acquisition loans?
The median was $395,000, with the middle half between $200,000 and $1,026,000. The national median is $645,250, so this lender's typical loan is 39% lower than the national figure.
Which states does Midland States Bank lend in?
Illinois (33), Missouri (5), Ohio (3), Indiana (2), Florida (2), Pennsylvania (1). Its loans appear in 9 states, so it is closer to a regional lender.
Which industries does Midland States Bank finance?
Machine Shops (4), Hotels (except Casino Hotels) and Motels (4), Limited-Service Restaurants (3), Fitness and Recreational Sports Centers (3), Precision Turned Product Manufacturing (2). The top industry is 8% of its acquisition loans.
How have Midland States Bank's acquisition loans performed?
Of 21 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
- Illinois acquisitions
- Missouri acquisitions
- Ohio acquisitions
- Machine Shops
- Hotels (except Casino Hotels) and Motels
- Limited-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Midland States Bank.