Northwest Bank: SBA business acquisition lending record
Northwest Bank (home state PA) approved 348 SBA 7(a) loans to buy existing businesses since FY2018, totaling $289M. The median loan was $387,700. It ranks number 21 of 280 lenders by count and made 0.7% 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 $145,125 and $939,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Pennsylvania is the largest state (31% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 9% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,142 SBA 7(a) loans of any purpose since FY2020, totaling $683M. 55% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 12% 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.
Northwest Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 22 | $9.1M | $186,000 | |
| FY2019 | 33 | $18.5M | $248,600 | |
| FY2020 | 33 | $20.2M | $490,000 | |
| FY2021 | 46 | $31M | $319,550 | |
| FY2022 | 24 | $16.9M | $299,550 | |
| FY2023 | 58 | $38.9M | $294,250 | |
| FY2024 | 49 | $35.5M | $400,000 | |
| FY2025 | 44 | $51.8M | $666,400 | |
| FY2026 | 39 | $66.8M | $900,000 |
How often do these acquisition loans fail?
Of the 134 Northwest 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. 67 have already been paid in full.
For comparison, Northwest 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 107 | 30.7% | $44.9M | |
| 2 | Washington | 34 | 9.8% | $53.9M | |
| 3 | Iowa | 30 | 8.6% | $22.4M | |
| 4 | Utah | 27 | 7.8% | $31.1M | |
| 5 | Ohio | 26 | 7.5% | $11.1M | |
| 6 | New York | 24 | 6.9% | $11.5M | |
| 7 | Nebraska | 19 | 5.5% | $10.5M | |
| 8 | Idaho | 16 | 4.6% | $8.4M | |
| 9 | Florida | 9 | 2.6% | $10.9M | |
| 10 | Oregon | 8 | 2.3% | $14.1M | |
| 11 | Massachusetts | 8 | 2.3% | $10.9M | |
| 12 | Colorado | 8 | 2.3% | $2.9M | |
| 13 | Indiana | 7 | 2.0% | $7.6M | |
| 14 | Wisconsin | 3 | 0.9% | $6.5M | |
| 15 | Texas | 3 | 0.9% | $3.7M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 31 | 8.9% | $18M | |
| 2 | Full-Service Restaurants | 21 | 6.0% | $9.9M | |
| 3 | Beer, Wine, and Liquor Retailers | 12 | 3.4% | $3M | |
| 4 | Plumbing, Heating, and Air-Conditioning Contractors | 11 | 3.2% | $19.5M | |
| 5 | All Other Specialty Trade Contractors | 9 | 2.6% | $10.5M | |
| 6 | Landscaping Services | 8 | 2.3% | $9.9M | |
| 7 | All Other Amusement and Recreation Industries | 8 | 2.3% | $5.4M | |
| 8 | Drinking Places (Alcoholic Beverages) | 8 | 2.3% | $1.8M | |
| 9 | Beauty Salons | 8 | 2.3% | $1.6M | |
| 10 | Machine Shops | 6 | 1.7% | $3M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 6 | 1.7% | $1.6M | |
| 2 | Ace Hardware | 4 | 1.1% | $5.4M | |
| 3 | Papa Murphy's Take 'N' Bake Pizza | 2 | 0.6% | $4.1M | |
| 4 | SpeedPro Imaging | 2 | 0.6% | $2.7M | |
| 5 | Midas | 2 | 0.6% | $1.3M | |
| 6 | Senior Helpers | 2 | 0.6% | $834K | |
| 7 | Junk King | 2 | 0.6% | $556K | |
| 8 | IGA USA | 2 | 0.6% | $481K | |
| 9 | Jimmy John's | 1 | 0.3% | $3M | |
| 10 | Altitude Trampoline Park | 1 | 0.3% | $2.8M |
Questions buyers ask
Does Northwest Bank make SBA acquisition loans?
Yes. Northwest Bank approved 348 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 21 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 Northwest Bank's acquisition loans?
The median was $387,700, with the middle half between $145,125 and $939,500. The national median is $645,250, so this lender's typical loan is 40% lower than the national figure.
Which states does Northwest Bank lend in?
Pennsylvania (107), Washington (34), Iowa (30), Utah (27), Ohio (26), New York (24). Its loans span at least 15 states.
Which industries does Northwest Bank finance?
Limited-Service Restaurants (31), Full-Service Restaurants (21), Beer, Wine, and Liquor Retailers (12), Plumbing, Heating, and Air-Conditioning Contractors (11), All Other Specialty Trade Contractors (9). The top industry is 9% of its acquisition loans.
How have Northwest Bank's acquisition loans performed?
Of 134 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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- Pennsylvania acquisitions
- Washington acquisitions
- Iowa acquisitions
- Limited-Service Restaurants
- Full-Service Restaurants
- Beer, Wine, and Liquor Retailers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Northwest Bank.