OakStar Bank: SBA business acquisition lending record
OakStar Bank (home state MO) approved 153 SBA 7(a) loans to buy existing businesses since FY2018, totaling $158M. The median loan was $719,800. It ranks number 64 of 280 lenders by count and made 0.3% 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 $315,000 and $1,260,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Missouri is the largest state (73% of loans). Loans appear in only 6 states, which points to a regional lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 7% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 624 SBA 7(a) loans of any purpose since FY2020, totaling $499M. 88% 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: 1.8% charged off, 47% lower than the 3.5% national average.
OakStar Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 10 | $11M | $558,050 | |
| FY2019 | 15 | $12.3M | $525,000 | |
| FY2020 | 11 | $8.5M | $595,000 | |
| FY2021 | 18 | $17.4M | $790,750 | |
| FY2022 | 12 | $9M | $716,750 | |
| FY2023 | 12 | $12.7M | $764,900 | |
| FY2024 | 20 | $22.7M | $716,250 | |
| FY2025 | 24 | $20.4M | $699,100 | |
| FY2026 | 31 | $43.4M | $1,000,000 |
How often do these acquisition loans fail?
Of the 54 OakStar Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 1.8% by loan count and 1.2% by dollars. 25 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 OakStar Bank is 47% lower 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.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 11 | 7.2% | $20.1M | |
| 2 | Gasoline Stations with Convenience Stores | 9 | 5.9% | $15.3M | |
| 3 | Full-Service Restaurants | 9 | 5.9% | $4.2M | |
| 4 | Beer, Wine, and Liquor Retailers | 6 | 3.9% | $4.1M | |
| 5 | Offices of Certified Public Accountants | 5 | 3.3% | $4.8M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 4 | 2.6% | $3.5M | |
| 7 | Offices of Dentists | 4 | 2.6% | $2.9M | |
| 8 | Limited-Service Restaurants | 4 | 2.6% | $1.8M | |
| 9 | Flooring Contractors | 3 | 2.0% | $5.6M | |
| 10 | Musical Instrument and Supplies Retailers | 3 | 2.0% | $2.5M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | World Fuel Services | 2 | 1.3% | $4.9M | |
| 2 | Days Inn | 2 | 1.3% | $4.5M | |
| 3 | Cold Stone Creamery | 2 | 1.3% | $1M | |
| 4 | Sylvan Learning Centers | 2 | 1.3% | $178K | |
| 5 | Baymont | 1 | 0.7% | $3M | |
| 6 | Home Instead | 1 | 0.7% | $2.5M | |
| 7 | Red Roof Inn | 1 | 0.7% | $1.6M | |
| 8 | Super 8 | 1 | 0.7% | $1M | |
| 9 | Sunoco | 1 | 0.7% | $981K | |
| 10 | Piggly Wiggly | 1 | 0.7% | $915K |
Questions buyers ask
Does OakStar Bank make SBA acquisition loans?
Yes. OakStar Bank approved 153 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 64 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 OakStar Bank's acquisition loans?
The median was $719,800, with the middle half between $315,000 and $1,260,000. The national median is $645,250, so this lender's typical loan is 12% higher than the national figure.
Which states does OakStar Bank lend in?
Missouri (111), Kansas (30), Colorado (7), Oklahoma (2), Iowa (2), Arkansas (1). Its loans appear in 6 states, so it is closer to a regional lender.
Which industries does OakStar Bank finance?
Hotels (except Casino Hotels) and Motels (11), Gasoline Stations with Convenience Stores (9), Full-Service Restaurants (9), Beer, Wine, and Liquor Retailers (6), Offices of Certified Public Accountants (5). The top industry is 7% of its acquisition loans.
How have OakStar Bank's acquisition loans performed?
Of 54 loans approved FY2018 to FY2021: 1.8% charged off, 47% lower than 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
- Missouri acquisitions
- Kansas acquisitions
- Colorado acquisitions
- Hotels (except Casino Hotels) and Motels
- Gasoline Stations with Convenience Stores
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by OakStar Bank.