Redwood CU: SBA business acquisition lending record
Redwood CU (home state CA) approved 37 SBA 7(a) loans to buy existing businesses since FY2018, totaling $14.1M. The median loan was $255,000. It ranks number 213 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 $152,000 and $420,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (100% of loans). Loans appear in only 1 states, which points to a regional lender.
- Industry concentration. Convenience Retailers is 14% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 98 SBA 7(a) loans of any purpose since FY2020, totaling $34.6M. 97% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 3% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.0% charged off, 14% higher than the 3.5% national average.
Redwood CU acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $331K | $331,000 | |
| FY2019 | 10 | $2.8M | $171,500 | |
| FY2020 | 7 | $3.1M | $205,000 | |
| FY2021 | 7 | $2.5M | $350,000 | |
| FY2022 | 4 | $1.3M | $272,500 | |
| FY2023 | 4 | $1.2M | $310,000 | |
| FY2024 | 3 | $2.5M | $1,000,000 | |
| FY2025 | 1 | $225K | $225,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 25 Redwood CU 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 4.0% by loan count and 1.9% by dollars. 14 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 Redwood CU is 14% 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
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 37 | 100.0% | $14.1M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Convenience Retailers | 5 | 13.5% | $2.8M | |
| 2 | Assisted Living Facilities for the Elderly | 4 | 10.8% | $716K | |
| 3 | Engineering Services | 3 | 8.1% | $1.3M | |
| 4 | Full-Service Restaurants | 3 | 8.1% | $757K | |
| 5 | General Automotive Repair | 2 | 5.4% | $995K | |
| 6 | Bed-and-Breakfast Inns | 2 | 5.4% | $304K | |
| 7 | All Other Professional, Scientific, and Technical Services | 1 | 2.7% | $1.3M | |
| 8 | Roofing Contractors | 1 | 2.7% | $675K | |
| 9 | Drinking Places (Alcoholic Beverages) | 1 | 2.7% | $420K |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Image360 | 1 | 2.7% | $290K |
Questions buyers ask
Does Redwood CU make SBA acquisition loans?
Yes. Redwood CU approved 37 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 213 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 Redwood CU's acquisition loans?
The median was $255,000, with the middle half between $152,000 and $420,000. The national median is $645,250, so this lender's typical loan is 60% lower than the national figure.
Which states does Redwood CU lend in?
California (37). Its loans appear in 1 states, so it is closer to a regional lender.
Which industries does Redwood CU finance?
Convenience Retailers (5), Assisted Living Facilities for the Elderly (4), Engineering Services (3), Full-Service Restaurants (3), General Automotive Repair (2). The top industry is 14% of its acquisition loans.
How have Redwood CU's acquisition loans performed?
Of 25 loans approved FY2018 to FY2021: 4.0% charged off, 14% higher 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
- California acquisitions
- Convenience Retailers
- Assisted Living Facilities for the Elderly
- Engineering Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Redwood CU.