Pathward National Association: SBA business acquisition lending record
Pathward National Association (home state SD) approved 315 SBA 7(a) loans to buy existing businesses since FY2018, totaling $569M. The median loan was $1,190,000. It ranks number 26 of 280 lenders by count and made 0.6% 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 $500,000 and $3,019,250. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (14% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Insurance Agencies and Brokerages is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 581 SBA 7(a) loans of any purpose since FY2020, totaling $976M. 80% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 10.3% charged off, 194% higher than the 3.5% national average.
Pathward National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $1.9M | $960,000 | |
| FY2019 | 17 | $14.6M | $515,000 | |
| FY2020 | 33 | $42.4M | $1,050,000 | |
| FY2021 | 6 | $6M | $730,000 | |
| FY2022 | 8 | $4M | $340,000 | |
| FY2023 | 20 | $28.8M | $1,319,200 | |
| FY2024 | 50 | $71.8M | $915,000 | |
| FY2025 | 54 | $125M | $1,662,500 | |
| FY2026 | 125 | $275M | $1,852,000 |
How often do these acquisition loans fail?
Of the 58 Pathward National Association acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 6 have been charged off by the SBA, a rate of 10.3% by loan count and 2.0% by dollars. 31 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 Pathward National Association is 194% higher 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 45 | 14.3% | $81.3M | |
| 2 | California | 37 | 11.7% | $73.9M | |
| 3 | Texas | 27 | 8.6% | $50.8M | |
| 4 | New York | 18 | 5.7% | $30.7M | |
| 5 | Illinois | 16 | 5.1% | $31.5M | |
| 6 | North Carolina | 12 | 3.8% | $23.6M | |
| 7 | Ohio | 12 | 3.8% | $22.2M | |
| 8 | Georgia | 10 | 3.2% | $26.2M | |
| 9 | South Carolina | 10 | 3.2% | $8.7M | |
| 10 | New Jersey | 9 | 2.9% | $17.8M | |
| 11 | Washington | 9 | 2.9% | $8.4M | |
| 12 | Pennsylvania | 8 | 2.5% | $17.6M | |
| 13 | Nevada | 8 | 2.5% | $13.4M | |
| 14 | Michigan | 8 | 2.5% | $12M | |
| 15 | Arizona | 8 | 2.5% | $10.2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Insurance Agencies and Brokerages | 33 | 10.5% | $46.8M | |
| 2 | Plumbing, Heating, and Air-Conditioning Contractors | 12 | 3.8% | $13.9M | |
| 3 | Full-Service Restaurants | 10 | 3.2% | $18.2M | |
| 4 | Roofing Contractors | 9 | 2.9% | $23.8M | |
| 5 | All Other Specialty Trade Contractors | 8 | 2.5% | $19.9M | |
| 6 | Fitness and Recreational Sports Centers | 8 | 2.5% | $11.4M | |
| 7 | Advertising Agencies | 6 | 1.9% | $15.5M | |
| 8 | Electrical Contractors and Other Wiring Installation Contractors | 5 | 1.6% | $11.9M | |
| 9 | Computer Systems Design Services | 5 | 1.6% | $11M | |
| 10 | Tax Preparation Services | 5 | 1.6% | $9.8M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Mr. Appliance | 3 | 1.0% | $2.3M | |
| 2 | Anytime Fitness | 2 | 0.6% | $3.8M | |
| 3 | AAMCO Transmissions and Total Car Care | 2 | 0.6% | $2.1M | |
| 4 | Edible Arrangements | 2 | 0.6% | $600K | |
| 5 | Jackson Hewitt Tax Service | 1 | 0.3% | $5M | |
| 6 | Sleep Inn | 1 | 0.3% | $4.6M | |
| 7 | Carpet One Floor & Home | 1 | 0.3% | $1.8M | |
| 8 | Ameriprise Financial | 1 | 0.3% | $1.7M | |
| 9 | Ace Hardware | 1 | 0.3% | $1.6M | |
| 10 | Any LabTest Now | 1 | 0.3% | $1.4M |
Questions buyers ask
Does Pathward National Association make SBA acquisition loans?
Yes. Pathward National Association approved 315 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 26 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 Pathward National Association's acquisition loans?
The median was $1,190,000, with the middle half between $500,000 and $3,019,250. The national median is $645,250, so this lender's typical loan is 84% higher than the national figure.
Which states does Pathward National Association lend in?
Florida (45), California (37), Texas (27), New York (18), Illinois (16), North Carolina (12). Its loans span at least 15 states.
Which industries does Pathward National Association finance?
Insurance Agencies and Brokerages (33), Plumbing, Heating, and Air-Conditioning Contractors (12), Full-Service Restaurants (10), Roofing Contractors (9), All Other Specialty Trade Contractors (8). The top industry is 10% of its acquisition loans.
How have Pathward National Association's acquisition loans performed?
Of 58 loans approved FY2018 to FY2021: 10.3% charged off, 194% higher 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
- Florida acquisitions
- California acquisitions
- Texas acquisitions
- Insurance Agencies and Brokerages
- Plumbing, Heating, and Air-Conditioning Contractors
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Pathward National Association.