Paragon Bank: SBA business acquisition lending record
Paragon Bank (home state TN) approved 26 SBA 7(a) loans to buy existing businesses since FY2018, totaling $32.2M. The median loan was $835,000. It ranks number 275 of 280 lenders by count and made 0.1% 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 $388,350 and $1,425,450. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Georgia is the largest state (35% of loans). Loans appear in only 10 states, which points to a regional lender.
- Industry concentration. Other Personal and Household Goods Repair and Maintenance is 12% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 109 SBA 7(a) loans of any purpose since FY2020, totaling $140M. 92% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 23% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Too few of its loans are old enough to measure a charge-off rate.
Paragon Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $356K | $356,000 | |
| FY2019 | 3 | $8.4M | $3,030,000 | |
| FY2020 | 5 | $3.4M | $475,000 | |
| FY2021 | 2 | $446K | $222,750 | |
| FY2022 | 1 | $580K | $580,000 | |
| FY2023 | 5 | $4M | $950,000 | |
| FY2024 | 2 | $6.1M | $3,025,000 | |
| FY2025 | 6 | $6.2M | $1,071,700 | |
| FY2026 | 1 | $2.7M | $2,740,000 |
How often do these acquisition loans fail?
Fewer than 20 Paragon Bank acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Georgia | 9 | 34.6% | $13.4M | |
| 2 | Tennessee | 8 | 30.8% | $12.4M | |
| 3 | Washington | 2 | 7.7% | $813K | |
| 4 | North Carolina | 1 | 3.8% | $2.7M | |
| 5 | Alabama | 1 | 3.8% | $998K | |
| 6 | New Jersey | 1 | 3.8% | $580K | |
| 7 | Montana | 1 | 3.8% | $475K | |
| 8 | Arizona | 1 | 3.8% | $355K | |
| 9 | Pennsylvania | 1 | 3.8% | $288K | |
| 10 | West Virginia | 1 | 3.8% | $158K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Other Personal and Household Goods Repair and Maintenance | 3 | 11.5% | $3.3M | |
| 2 | Fitness and Recreational Sports Centers | 3 | 11.5% | $1.1M | |
| 3 | Insurance Agencies and Brokerages | 3 | 11.5% | $913K | |
| 4 | Child Care Services | 2 | 7.7% | $5.6M | |
| 5 | Offices of Real Estate Agents and Brokers | 2 | 7.7% | $2.6M | |
| 6 | Broilers and Other Meat Type Chicken Production | 2 | 7.7% | $2.3M | |
| 7 | Offices of Certified Public Accountants | 1 | 3.8% | $4.4M | |
| 8 | Custom Computer Programming Services | 1 | 3.8% | $3M | |
| 9 | Nursery, Garden Center, and Farm Supply Retailers | 1 | 3.8% | $2.7M | |
| 10 | Sporting and Recreational Goods and Supplies Merchant Wholesalers | 1 | 3.8% | $1.7M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Primrose Schools | 2 | 7.7% | $5.6M | |
| 2 | Hotworx | 2 | 7.7% | $716K | |
| 3 | Club Pilates | 1 | 3.8% | $412K |
Questions buyers ask
Does Paragon Bank make SBA acquisition loans?
Yes. Paragon Bank approved 26 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 275 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 Paragon Bank's acquisition loans?
The median was $835,000, with the middle half between $388,350 and $1,425,450. The national median is $645,250, so this lender's typical loan is 29% higher than the national figure.
Which states does Paragon Bank lend in?
Georgia (9), Tennessee (8), Washington (2), North Carolina (1), Alabama (1), New Jersey (1). Its loans appear in 10 states, so it is closer to a regional lender.
Which industries does Paragon Bank finance?
Other Personal and Household Goods Repair and Maintenance (3), Fitness and Recreational Sports Centers (3), Insurance Agencies and Brokerages (3), Child Care Services (2), Offices of Real Estate Agents and Brokers (2). The top industry is 12% of its acquisition loans.
How have Paragon Bank's acquisition loans performed?
Fewer than 20 of this lender's loans are old enough to measure. The national benchmark is 3.5% for the FY2018 to FY2021 cohort.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Georgia acquisitions
- Tennessee acquisitions
- Washington acquisitions
- Other Personal and Household Goods Repair and Maintenance
- Fitness and Recreational Sports Centers
- Insurance Agencies and Brokerages
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Paragon Bank.