Northeast Bank: SBA business acquisition lending record
Northeast Bank (home state ME) approved 34 SBA 7(a) loans to buy existing businesses since FY2018, totaling $51.5M. The median loan was $1,080,000. It ranks number 230 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $253,750 and $2,230,250. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (38% of loans). Loans appear in only 12 states, which points to a regional lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 41% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 6,904 SBA 7(a) loans of any purpose since FY2020, totaling $1.0B. 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.
Northeast Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 14 | $33.5M | $2,248,500 | |
| FY2019 | 11 | $13.4M | $1,060,000 | |
| FY2020 | 5 | $1.3M | $178,500 | |
| FY2021 | 3 | $3M | $1,100,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $265K | $265,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 33 Northeast 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. 17 have already been paid in full.
For comparison, Northeast 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 | Minnesota | 13 | 38.2% | $6.1M | |
| 2 | Texas | 4 | 11.8% | $13.9M | |
| 3 | Ohio | 3 | 8.8% | $6.8M | |
| 4 | California | 3 | 8.8% | $6.5M | |
| 5 | Indiana | 2 | 5.9% | $6M | |
| 6 | Pennsylvania | 2 | 5.9% | $5.8M | |
| 7 | Missouri | 2 | 5.9% | $1.5M | |
| 8 | North Dakota | 1 | 2.9% | $2.5M | |
| 9 | Kentucky | 1 | 2.9% | $1.3M | |
| 10 | Alabama | 1 | 2.9% | $558K | |
| 11 | New Hampshire | 1 | 2.9% | $528K | |
| 12 | New York | 1 | 2.9% | $150K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 14 | 41.2% | $42.2M | |
| 2 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | 8.8% | $1.6M | |
| 3 | All Other Miscellaneous General Purpose Machinery Manufacturing | 1 | 2.9% | $1.4M | |
| 4 | Gasoline Stations with Convenience Stores | 1 | 2.9% | $558K | |
| 5 | Investment Advice | 1 | 2.9% | $528K | |
| 6 | Full-Service Restaurants | 1 | 2.9% | $496K | |
| 7 | Other Building Finishing Contractors | 1 | 2.9% | $374K |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Best Western | 2 | 5.9% | $8.5M | |
| 2 | Red Roof Inn | 2 | 5.9% | $6.6M | |
| 3 | Baymont | 2 | 5.9% | $5.8M | |
| 4 | Comfort Inn | 1 | 2.9% | $5M | |
| 5 | Country Inn and Suites by Radisson | 1 | 2.9% | $5M | |
| 6 | AmericInn | 1 | 2.9% | $2.5M | |
| 7 | Quality Inn | 1 | 2.9% | $2.3M | |
| 8 | Microtel Inn & Suites | 1 | 2.9% | $2.2M | |
| 9 | Rodeway Inn | 1 | 2.9% | $1.8M | |
| 10 | Econo Lodge | 1 | 2.9% | $1.3M |
Questions buyers ask
Does Northeast Bank make SBA acquisition loans?
Yes. Northeast Bank approved 34 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 230 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 Northeast Bank's acquisition loans?
The median was $1,080,000, with the middle half between $253,750 and $2,230,250. The national median is $645,250, so this lender's typical loan is 67% higher than the national figure.
Which states does Northeast Bank lend in?
Minnesota (13), Texas (4), Ohio (3), California (3), Indiana (2), Pennsylvania (2). Its loans appear in 12 states, so it is closer to a regional lender.
Which industries does Northeast Bank finance?
Hotels (except Casino Hotels) and Motels (14), Plumbing, Heating, and Air-Conditioning Contractors (3), All Other Miscellaneous General Purpose Machinery Manufacturing (1), Gasoline Stations with Convenience Stores (1), Investment Advice (1). The top industry is 41% of its acquisition loans.
How have Northeast Bank's acquisition loans performed?
Of 33 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- Minnesota acquisitions
- Texas acquisitions
- Ohio acquisitions
- Hotels (except Casino Hotels) and Motels
- Plumbing, Heating, and Air-Conditioning Contractors
- All Other Miscellaneous General Purpose Machinery Manufacturing
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Northeast Bank.