North State Bank: SBA business acquisition lending record
North State Bank (home state NC) approved 102 SBA 7(a) loans to buy existing businesses since FY2018, totaling $97.5M. The median loan was $638,100. It ranks number 98 of 280 lenders by count and made 0.2% 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 $356,250 and $1,151,375. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. North Carolina is the largest state (26% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 9% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 323 SBA 7(a) loans of any purpose since FY2020, totaling $245M. 93% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 28% 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.
North State Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $19M | $1,637,000 | |
| FY2019 | 14 | $17.1M | $649,000 | |
| FY2020 | 17 | $13.9M | $410,000 | |
| FY2021 | 14 | $6.2M | $494,500 | |
| FY2022 | 5 | $3M | $446,000 | |
| FY2023 | 5 | $3.7M | $646,200 | |
| FY2024 | 16 | $13.4M | $931,500 | |
| FY2025 | 12 | $10.4M | $507,000 | |
| FY2026 | 10 | $10.8M | $945,250 |
How often do these acquisition loans fail?
Of the 54 North State 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. 27 have already been paid in full.
For comparison, North State 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.
Seller note standby terms and third-party consents are reviewed before closing.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 27 | 26.5% | $22.8M | |
| 2 | Florida | 23 | 22.5% | $20.4M | |
| 3 | Georgia | 14 | 13.7% | $16.2M | |
| 4 | Tennessee | 7 | 6.9% | $10.1M | |
| 5 | Washington | 4 | 3.9% | $2.6M | |
| 6 | New York | 4 | 3.9% | $2.5M | |
| 7 | Texas | 3 | 2.9% | $2.1M | |
| 8 | California | 3 | 2.9% | $1.5M | |
| 9 | New Jersey | 3 | 2.9% | $1.1M | |
| 10 | South Carolina | 2 | 2.0% | $5.7M | |
| 11 | Ohio | 2 | 2.0% | $1.6M | |
| 12 | Wisconsin | 2 | 2.0% | $694K | |
| 13 | Missouri | 1 | 1.0% | $3.2M | |
| 14 | Alabama | 1 | 1.0% | $2.3M | |
| 15 | Michigan | 1 | 1.0% | $1.3M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 9 | 8.8% | $6.4M | |
| 2 | Hotels (except Casino Hotels) and Motels | 8 | 7.8% | $23.9M | |
| 3 | Limited-Service Restaurants | 6 | 5.9% | $2.4M | |
| 4 | Assisted Living Facilities for the Elderly | 4 | 3.9% | $3.6M | |
| 5 | Child Care Services | 4 | 3.9% | $1.8M | |
| 6 | Sign Manufacturing | 2 | 2.0% | $3.5M | |
| 7 | All Other Miscellaneous Retailers | 2 | 2.0% | $3.4M | |
| 8 | Wood Kitchen Cabinet and Countertop Manufacturing | 2 | 2.0% | $2.3M | |
| 9 | Landscaping Services | 2 | 2.0% | $1.7M | |
| 10 | Janitorial Services | 2 | 2.0% | $1.5M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Sleep Inn | 2 | 2.0% | $8M | |
| 2 | Red Roof Inn | 2 | 2.0% | $6.8M | |
| 3 | Mr. Appliance | 2 | 2.0% | $1.2M | |
| 4 | Minuteman Press | 2 | 2.0% | $1.1M | |
| 5 | Firehouse Subs | 2 | 2.0% | $874K | |
| 6 | Country Inn and Suites by Radisson | 1 | 1.0% | $3.7M | |
| 7 | Quality Inn | 1 | 1.0% | $3.4M | |
| 8 | Signarama | 1 | 1.0% | $2.3M | |
| 9 | Rodeway Inn | 1 | 1.0% | $1.4M | |
| 10 | Merry Maids | 1 | 1.0% | $1.1M |
Questions buyers ask
Does North State Bank make SBA acquisition loans?
Yes. North State Bank approved 102 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 98 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 North State Bank's acquisition loans?
The median was $638,100, with the middle half between $356,250 and $1,151,375. The national median is $645,250, so this lender's typical loan is in line with the national figure.
Which states does North State Bank lend in?
North Carolina (27), Florida (23), Georgia (14), Tennessee (7), Washington (4), New York (4). Its loans span at least 15 states.
Which industries does North State Bank finance?
Full-Service Restaurants (9), Hotels (except Casino Hotels) and Motels (8), Limited-Service Restaurants (6), Assisted Living Facilities for the Elderly (4), Child Care Services (4). The top industry is 9% of its acquisition loans.
How have North State Bank's acquisition loans performed?
Of 54 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.
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Related
- North Carolina acquisitions
- Florida acquisitions
- Georgia acquisitions
- Full-Service Restaurants
- 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 North State Bank.