Peoples Bank: SBA business acquisition lending record
Peoples Bank (home state WA) approved 97 SBA 7(a) loans to buy existing businesses since FY2018, totaling $114M. The median loan was $591,500. It ranks number 102 of 280 lenders by count and made 0.2% 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 $241,000 and $1,603,700. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Washington is the largest state (32% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Hotels (except Casino Hotels) and Motels is 25% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,032 SBA 7(a) loans of any purpose since FY2020, totaling $931M. 75% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 36% 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.
Peoples Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $3.3M | $393,150 | |
| FY2019 | 8 | $13.7M | $1,078,750 | |
| FY2020 | 17 | $32.9M | $1,981,500 | |
| FY2021 | 20 | $30.6M | $427,500 | |
| FY2022 | 3 | $4.3M | $1,603,700 | |
| FY2023 | 12 | $6.9M | $480,950 | |
| FY2024 | 11 | $5.9M | $306,600 | |
| FY2025 | 4 | $2.3M | $581,500 | |
| FY2026 | 16 | $13.9M | $539,650 |
How often do these acquisition loans fail?
Of the 51 Peoples 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. 27 have already been paid in full.
For comparison, Peoples 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 | Washington | 31 | 32.0% | $20.8M | |
| 2 | Ohio | 18 | 18.6% | $7.6M | |
| 3 | Mississippi | 15 | 15.5% | $23.1M | |
| 4 | Georgia | 6 | 6.2% | $12.4M | |
| 5 | Kentucky | 5 | 5.2% | $3.1M | |
| 6 | West Virginia | 4 | 4.1% | $3.5M | |
| 7 | Texas | 3 | 3.1% | $13.2M | |
| 8 | Alabama | 3 | 3.1% | $8M | |
| 9 | Kansas | 2 | 2.1% | $4.1M | |
| 10 | Illinois | 2 | 2.1% | $430K | |
| 11 | Indiana | 2 | 2.1% | $412K | |
| 12 | Tennessee | 1 | 1.0% | $5M | |
| 13 | Connecticut | 1 | 1.0% | $3.7M | |
| 14 | Arkansas | 1 | 1.0% | $3.1M | |
| 15 | Louisiana | 1 | 1.0% | $2.4M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 24 | 24.7% | $67.9M | |
| 2 | Pet Care (except Veterinary) Services | 6 | 6.2% | $2.6M | |
| 3 | Full-Service Restaurants | 6 | 6.2% | $1.9M | |
| 4 | Limited-Service Restaurants | 5 | 5.2% | $2.8M | |
| 5 | Electrical Contractors and Other Wiring Installation Contractors | 5 | 5.2% | $2.2M | |
| 6 | General Automotive Repair | 4 | 4.1% | $4.1M | |
| 7 | All Other Specialty Trade Contractors | 3 | 3.1% | $1.2M | |
| 8 | Clothing and Clothing Accessories Retailers | 3 | 3.1% | $566K | |
| 9 | Landscaping Services | 2 | 2.1% | $1.6M | |
| 10 | Child Care Services | 2 | 2.1% | $1.2M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 4 | 4.1% | $2.5M | |
| 2 | Best Western | 2 | 2.1% | $5.8M | |
| 3 | Motel 6 | 2 | 2.1% | $5.5M | |
| 4 | Days Inn | 2 | 2.1% | $3.7M | |
| 5 | Country Inn and Suites by Radisson | 1 | 1.0% | $5M | |
| 6 | Holiday Inn Express | 1 | 1.0% | $5M | |
| 7 | Hampton Inn | 1 | 1.0% | $4.8M | |
| 8 | Sleep Inn | 1 | 1.0% | $3.8M | |
| 9 | Comfort Inn | 1 | 1.0% | $3.6M | |
| 10 | Super 8 | 1 | 1.0% | $3.4M |
Questions buyers ask
Does Peoples Bank make SBA acquisition loans?
Yes. Peoples Bank approved 97 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 102 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 Peoples Bank's acquisition loans?
The median was $591,500, with the middle half between $241,000 and $1,603,700. The national median is $645,250, so this lender's typical loan is 8% lower than the national figure.
Which states does Peoples Bank lend in?
Washington (31), Ohio (18), Mississippi (15), Georgia (6), Kentucky (5), West Virginia (4). Its loans span at least 15 states.
Which industries does Peoples Bank finance?
Hotels (except Casino Hotels) and Motels (24), Pet Care (except Veterinary) Services (6), Full-Service Restaurants (6), Limited-Service Restaurants (5), Electrical Contractors and Other Wiring Installation Contractors (5). The top industry is 25% of its acquisition loans.
How have Peoples Bank's acquisition loans performed?
Of 51 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
- Washington acquisitions
- Ohio acquisitions
- Mississippi acquisitions
- Hotels (except Casino Hotels) and Motels
- Pet Care (except Veterinary) Services
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Peoples Bank.