Provident Bank: SBA business acquisition lending record
Provident Bank (home state NJ) approved 95 SBA 7(a) loans to buy existing businesses since FY2018, totaling $81.2M. The median loan was $586,000. It ranks number 105 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 $341,500 and $852,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. New Jersey is the largest state (54% of loans). Loans appear in only 4 states, which points to a regional lender.
- Industry concentration. Beer, Wine, and Liquor Retailers is 45% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 308 SBA 7(a) loans of any purpose since FY2020, totaling $308M. 97% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 7% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.5% charged off, 56% lower than the 3.5% national average.
Provident Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 17 | $14.8M | $450,000 | |
| FY2019 | 11 | $8.8M | $500,000 | |
| FY2020 | 11 | $7.5M | $500,000 | |
| FY2021 | 26 | $21.4M | $680,000 | |
| FY2022 | 4 | $2.2M | $505,000 | |
| FY2023 | 6 | $5.4M | $675,000 | |
| FY2024 | 1 | $1.1M | $1,115,000 | |
| FY2025 | 3 | $6M | $594,000 | |
| FY2026 | 16 | $14M | $590,500 |
How often do these acquisition loans fail?
Of the 65 Provident 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 1.5% by loan count and 0.3% by dollars. 27 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 Provident Bank is 56% 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.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Jersey | 51 | 53.7% | $49.2M | |
| 2 | New York | 40 | 42.1% | $24.5M | |
| 3 | Delaware | 2 | 2.1% | $4.4M | |
| 4 | Pennsylvania | 2 | 2.1% | $3.1M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 43 | 45.3% | $40.5M | |
| 2 | Drycleaning and Laundry Services (except Coin-Operated) | 10 | 10.5% | $4.1M | |
| 3 | Full-Service Restaurants | 9 | 9.5% | $10.2M | |
| 4 | Limited-Service Restaurants | 5 | 5.3% | $3.1M | |
| 5 | Bowling Centers | 4 | 4.2% | $7.4M | |
| 6 | Child Care Services | 3 | 3.2% | $3.6M | |
| 7 | Landscaping Services | 2 | 2.1% | $755K | |
| 8 | Snack and Nonalcoholic Beverage Bars | 2 | 2.1% | $605K | |
| 9 | Fine Arts Schools | 2 | 2.1% | $430K | |
| 10 | Plumbing, Heating, and Air-Conditioning Contractors | 1 | 1.1% | $2.3M |
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 | Minuteman Press | 1 | 1.1% | $594K | |
| 2 | IHOP | 1 | 1.1% | $500K | |
| 3 | Subway | 1 | 1.1% | $240K |
Questions buyers ask
Does Provident Bank make SBA acquisition loans?
Yes. Provident Bank approved 95 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 105 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 Provident Bank's acquisition loans?
The median was $586,000, with the middle half between $341,500 and $852,500. The national median is $645,250, so this lender's typical loan is 9% lower than the national figure.
Which states does Provident Bank lend in?
New Jersey (51), New York (40), Delaware (2), Pennsylvania (2). Its loans appear in 4 states, so it is closer to a regional lender.
Which industries does Provident Bank finance?
Beer, Wine, and Liquor Retailers (43), Drycleaning and Laundry Services (except Coin-Operated) (10), Full-Service Restaurants (9), Limited-Service Restaurants (5), Bowling Centers (4). The top industry is 45% of its acquisition loans.
How have Provident Bank's acquisition loans performed?
Of 65 loans approved FY2018 to FY2021: 1.5% charged off, 56% 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
- New Jersey acquisitions
- New York acquisitions
- Delaware acquisitions
- Beer, Wine, and Liquor Retailers
- Drycleaning and Laundry Services (except Coin-Operated)
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Provident Bank.