Prosperity Bank: SBA business acquisition lending record
Prosperity Bank (home state TX) approved 86 SBA 7(a) loans to buy existing businesses since FY2018, totaling $106M. The median loan was $990,800. It ranks number 111 of 280 lenders by count and made 0.2% 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 $532,500 and $1,659,200. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Texas is the largest state (100% of loans). Loans appear in only 1 states, which points to a regional lender.
- Industry concentration. Drycleaning and Laundry Services (except Coin-Operated) is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 287 SBA 7(a) loans of any purpose since FY2020, totaling $289M. 98% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 14% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.9% charged off, 46% lower than the 3.5% national average.
Prosperity Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $8.8M | $477,000 | |
| FY2019 | 14 | $16.9M | $1,126,400 | |
| FY2020 | 8 | $6.7M | $646,550 | |
| FY2021 | 20 | $20.6M | $935,550 | |
| FY2022 | 8 | $17.5M | $1,906,150 | |
| FY2023 | 6 | $7M | $1,190,000 | |
| FY2024 | 7 | $9.7M | $847,500 | |
| FY2025 | 7 | $11.7M | $429,000 | |
| FY2026 | 5 | $7M | $1,656,800 |
How often do these acquisition loans fail?
Of the 53 Prosperity 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 1.9% by loan count and 2.0% 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 Prosperity Bank is 46% 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 86 | 100.0% | $106M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Drycleaning and Laundry Services (except Coin-Operated) | 7 | 8.1% | $6.6M | |
| 2 | Full-Service Restaurants | 4 | 4.7% | $6.7M | |
| 3 | Gasoline Stations with Convenience Stores | 3 | 3.5% | $6.3M | |
| 4 | Car Washes | 3 | 3.5% | $2.9M | |
| 5 | Limited-Service Restaurants | 3 | 3.5% | $2.4M | |
| 6 | Child Care Services | 3 | 3.5% | $2.2M | |
| 7 | Other Miscellaneous Durable Goods Merchant Wholesalers | 2 | 2.3% | $5.1M | |
| 8 | Sports and Recreation Instruction | 2 | 2.3% | $3.5M | |
| 9 | Industrial Supplies Merchant Wholesalers | 2 | 2.3% | $3.4M | |
| 10 | All Other Business Support Services | 2 | 2.3% | $3.1M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Martinizing Cleaners | 2 | 2.3% | $1.2M | |
| 2 | Red Roof Inn | 1 | 1.2% | $2.1M | |
| 3 | Cicis Pizza | 1 | 1.2% | $982K | |
| 4 | Great American Cookies | 1 | 1.2% | $404K | |
| 5 | Pure Barre | 1 | 1.2% | $315K | |
| 6 | Home Helpers Home Care | 1 | 1.2% | $230K |
Questions buyers ask
Does Prosperity Bank make SBA acquisition loans?
Yes. Prosperity Bank approved 86 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 111 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 Prosperity Bank's acquisition loans?
The median was $990,800, with the middle half between $532,500 and $1,659,200. The national median is $645,250, so this lender's typical loan is 54% higher than the national figure.
Which states does Prosperity Bank lend in?
Texas (86). Its loans appear in 1 states, so it is closer to a regional lender.
Which industries does Prosperity Bank finance?
Drycleaning and Laundry Services (except Coin-Operated) (7), Full-Service Restaurants (4), Gasoline Stations with Convenience Stores (3), Car Washes (3), Limited-Service Restaurants (3). The top industry is 8% of its acquisition loans.
How have Prosperity Bank's acquisition loans performed?
Of 53 loans approved FY2018 to FY2021: 1.9% charged off, 46% lower than 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.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Texas acquisitions
- Drycleaning and Laundry Services (except Coin-Operated)
- Full-Service Restaurants
- Gasoline Stations with Convenience Stores
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Prosperity Bank.