Newtek Small Business Finance, LLC: SBA business acquisition lending record
Newtek Small Business Finance, LLC (home state NY) approved 197 SBA 7(a) loans to buy existing businesses since FY2018, totaling $182M. The median loan was $400,000. It ranks number 47 of 280 lenders by count and made 0.4% 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 $208,000 and $1,100,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (14% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 2,770 SBA 7(a) loans of any purpose since FY2020, totaling $1.9B. 100% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 17% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.5% charged off, 29% higher than the 3.5% national average.
Newtek Small Business Finance, LLC acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 28 | $23.5M | $451,500 | |
| FY2019 | 61 | $59.2M | $452,000 | |
| FY2020 | 17 | $16.4M | $400,000 | |
| FY2021 | 26 | $28.6M | $650,000 | |
| FY2022 | 42 | $34.2M | $322,500 | |
| FY2023 | 23 | $19.7M | $413,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 132 Newtek Small Business Finance, LLC acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 6 have been charged off by the SBA, a rate of 4.5% by loan count and 0.8% by dollars. 65 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 Newtek Small Business Finance, LLC is 29% higher 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 | Florida | 28 | 14.2% | $26.7M | |
| 2 | Texas | 20 | 10.2% | $11.9M | |
| 3 | California | 17 | 8.6% | $18.9M | |
| 4 | New York | 15 | 7.6% | $8.4M | |
| 5 | Connecticut | 8 | 4.1% | $9.6M | |
| 6 | Illinois | 8 | 4.1% | $7.5M | |
| 7 | Ohio | 7 | 3.6% | $4.9M | |
| 8 | Pennsylvania | 7 | 3.6% | $3.7M | |
| 9 | Georgia | 7 | 3.6% | $2.6M | |
| 10 | Colorado | 6 | 3.0% | $5.1M | |
| 11 | Nevada | 5 | 2.5% | $10.6M | |
| 12 | Louisiana | 5 | 2.5% | $9.2M | |
| 13 | Virginia | 5 | 2.5% | $2.8M | |
| 14 | Massachusetts | 4 | 2.0% | $5.3M | |
| 15 | Oregon | 4 | 2.0% | $3.5M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 11 | 5.6% | $6.1M | |
| 2 | Child Care Services | 9 | 4.6% | $7.9M | |
| 3 | Full-Service Restaurants | 8 | 4.1% | $8.7M | |
| 4 | Beauty Salons | 7 | 3.6% | $1.2M | |
| 5 | Fitness and Recreational Sports Centers | 6 | 3.0% | $3.4M | |
| 6 | Beer, Wine, and Liquor Retailers | 6 | 3.0% | $2.9M | |
| 7 | Drinking Places (Alcoholic Beverages) | 6 | 3.0% | $2.8M | |
| 8 | General Automotive Repair | 5 | 2.5% | $8.9M | |
| 9 | Sporting Goods Retailers | 4 | 2.0% | $5M | |
| 10 | Motor Vehicle Towing | 4 | 2.0% | $4.8M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Anytime Fitness | 2 | 1.0% | $417K | |
| 2 | System4 | 1 | 0.5% | $1.1M | |
| 3 | The Cleaning Authority | 1 | 0.5% | $674K | |
| 4 | 1-800-Radiator & A/C | 1 | 0.5% | $550K | |
| 5 | Edible Arrangements | 1 | 0.5% | $413K | |
| 6 | Always Best Care Services | 1 | 0.5% | $386K | |
| 7 | Brain Balance | 1 | 0.5% | $350K | |
| 8 | The UPS Store | 1 | 0.5% | $282K | |
| 9 | Subway | 1 | 0.5% | $230K | |
| 10 | Fox's Pizza Den | 1 | 0.5% | $150K |
Questions buyers ask
Does Newtek Small Business Finance, LLC make SBA acquisition loans?
Yes. Newtek Small Business Finance, LLC approved 197 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 47 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 Newtek Small Business Finance, LLC's acquisition loans?
The median was $400,000, with the middle half between $208,000 and $1,100,000. The national median is $645,250, so this lender's typical loan is 38% lower than the national figure.
Which states does Newtek Small Business Finance, LLC lend in?
Florida (28), Texas (20), California (17), New York (15), Connecticut (8), Illinois (8). Its loans span at least 15 states.
Which industries does Newtek Small Business Finance, LLC finance?
Limited-Service Restaurants (11), Child Care Services (9), Full-Service Restaurants (8), Beauty Salons (7), Fitness and Recreational Sports Centers (6). The top industry is 6% of its acquisition loans.
How have Newtek Small Business Finance, LLC's acquisition loans performed?
Of 132 loans approved FY2018 to FY2021: 4.5% charged off, 29% higher 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.
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Related
- Florida acquisitions
- Texas acquisitions
- California acquisitions
- Limited-Service Restaurants
- Child Care Services
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Newtek Small Business Finance, LLC.