Plains State Bank: SBA business acquisition lending record
Plains State Bank (home state TX) approved 54 SBA 7(a) loans to buy existing businesses since FY2018, totaling $156M. The median loan was $3,210,000. It ranks number 164 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 $1,176,175 and $4,684,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Texas is the largest state (98% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Child Care Services is 30% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 111 SBA 7(a) loans of any purpose since FY2020, totaling $226M. 98% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 52% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 6.9% charged off, 96% higher than the 3.5% national average.
Plains State Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $16.8M | $2,292,500 | |
| FY2019 | 11 | $28.9M | $2,000,000 | |
| FY2020 | 2 | $4M | $2,000,000 | |
| FY2021 | 9 | $36.7M | $4,600,000 | |
| FY2022 | 8 | $25.9M | $3,866,000 | |
| FY2023 | 1 | $1.1M | $1,112,700 | |
| FY2024 | 4 | $4.7M | $945,000 | |
| FY2025 | 5 | $17M | $3,796,400 | |
| FY2026 | 7 | $20.8M | $3,400,000 |
How often do these acquisition loans fail?
Of the 29 Plains State Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 6.9% by loan count and 1.3% by dollars. 12 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 Plains State Bank is 96% 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.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Child Care Services | 16 | 29.6% | $65.3M | |
| 2 | Hotels (except Casino Hotels) and Motels | 10 | 18.5% | $32.8M | |
| 3 | Gasoline Stations with Convenience Stores | 5 | 9.3% | $11.7M | |
| 4 | All Other Personal Services | 2 | 3.7% | $6.9M | |
| 5 | Gift, Novelty, and Souvenir Retailers | 2 | 3.7% | $1.2M | |
| 6 | Services for the Elderly and Persons with Disabilities | 1 | 1.9% | $5M | |
| 7 | Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance | 1 | 1.9% | $5M | |
| 8 | Motorcycle, ATV, and All Other Motor Vehicle Dealers | 1 | 1.9% | $4.7M | |
| 9 | Elementary and Secondary Schools | 1 | 1.9% | $4M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Children's Lighthouse Early Learning Schools | 5 | 9.3% | $21.9M | |
| 2 | The Goddard School | 3 | 5.6% | $13.3M | |
| 3 | Primrose Schools | 2 | 3.7% | $8.8M | |
| 4 | Studio 6 | 2 | 3.7% | $5.8M | |
| 5 | Kids 'R' Kids | 2 | 3.7% | $5.7M | |
| 6 | Super 8 | 2 | 3.7% | $4.5M | |
| 7 | La Quinta | 1 | 1.9% | $5M | |
| 8 | Holiday Inn Express | 1 | 1.9% | $5M | |
| 9 | Kiddie Academy | 1 | 1.9% | $4.3M | |
| 10 | Comfort Suites | 1 | 1.9% | $3.5M |
Questions buyers ask
Does Plains State Bank make SBA acquisition loans?
Yes. Plains State Bank approved 54 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 164 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 Plains State Bank's acquisition loans?
The median was $3,210,000, with the middle half between $1,176,175 and $4,684,000. The national median is $645,250, so this lender's typical loan is 397% higher than the national figure.
Which states does Plains State Bank lend in?
Texas (53), Michigan (1). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does Plains State Bank finance?
Child Care Services (16), Hotels (except Casino Hotels) and Motels (10), Gasoline Stations with Convenience Stores (5), All Other Personal Services (2), Gift, Novelty, and Souvenir Retailers (2). The top industry is 30% of its acquisition loans.
How have Plains State Bank's acquisition loans performed?
Of 29 loans approved FY2018 to FY2021: 6.9% charged off, 96% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
The purchase agreement decides what you bought, not the loan approval.
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Related
- Texas acquisitions
- Michigan acquisitions
- Child Care Services
- Hotels (except Casino Hotels) and Motels
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Plains State Bank.