Regions Bank: SBA business acquisition lending record
Regions Bank (home state AL) approved 83 SBA 7(a) loans to buy existing businesses since FY2018, totaling $109M. The median loan was $936,600. It ranks number 114 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 $294,200 and $1,961,250. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (19% of loans). Loans appear in only 14 states, which points to a regional lender.
- Industry concentration. Sheet Metal Work Manufacturing is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 834 SBA 7(a) loans of any purpose since FY2020, totaling $845M. 67% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 12% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 5.6% charged off, 58% higher than the 3.5% national average.
Regions Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $12.5M | $718,500 | |
| FY2019 | 11 | $13.3M | $300,000 | |
| FY2020 | 17 | $21.5M | $936,600 | |
| FY2021 | 15 | $18.4M | $616,300 | |
| FY2022 | 6 | $6.7M | $1,299,950 | |
| FY2023 | 4 | $6.2M | $622,300 | |
| FY2024 | 2 | $4.7M | $2,350,300 | |
| FY2025 | 9 | $11.7M | $431,000 | |
| FY2026 | 8 | $13.8M | $1,791,100 |
How often do these acquisition loans fail?
Of the 54 Regions Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 5.6% by loan count and 2.1% by dollars. 29 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 Regions Bank is 58% 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 | Florida | 16 | 19.3% | $14.4M | |
| 2 | Texas | 14 | 16.9% | $35.3M | |
| 3 | Alabama | 9 | 10.8% | $13.5M | |
| 4 | Tennessee | 9 | 10.8% | $6.2M | |
| 5 | Missouri | 8 | 9.6% | $5.4M | |
| 6 | Mississippi | 5 | 6.0% | $6.4M | |
| 7 | Louisiana | 4 | 4.8% | $9.7M | |
| 8 | Indiana | 4 | 4.8% | $6.6M | |
| 9 | Georgia | 4 | 4.8% | $5.3M | |
| 10 | Arkansas | 3 | 3.6% | $1.4M | |
| 11 | Kentucky | 2 | 2.4% | $2.3M | |
| 12 | North Carolina | 2 | 2.4% | $1.8M | |
| 13 | Virginia | 2 | 2.4% | $372K | |
| 14 | Illinois | 1 | 1.2% | $241K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Sheet Metal Work Manufacturing | 5 | 6.0% | $8M | |
| 2 | Full-Service Restaurants | 5 | 6.0% | $4.5M | |
| 3 | Home Health Care Services | 4 | 4.8% | $6.7M | |
| 4 | All Other Specialty Trade Contractors | 3 | 3.6% | $2.9M | |
| 5 | Engineering Services | 2 | 2.4% | $6.7M | |
| 6 | Pharmacies and Drug Retailers | 2 | 2.4% | $4.9M | |
| 7 | Insurance Agencies and Brokerages | 2 | 2.4% | $4.2M | |
| 8 | Cafeterias, Grill Buffets, and Buffets | 2 | 2.4% | $3.6M | |
| 9 | Carpet and Upholstery Cleaning Services | 2 | 2.4% | $2.7M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Servpro | 2 | 2.4% | $2.7M | |
| 2 | The Goddard School | 1 | 1.2% | $4.4M | |
| 3 | Smoothie King | 1 | 1.2% | $2.1M | |
| 4 | Allstate Home Inspection | 1 | 1.2% | $1.4M | |
| 5 | Plato's Closet | 1 | 1.2% | $603K |
Questions buyers ask
Does Regions Bank make SBA acquisition loans?
Yes. Regions Bank approved 83 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 114 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 Regions Bank's acquisition loans?
The median was $936,600, with the middle half between $294,200 and $1,961,250. The national median is $645,250, so this lender's typical loan is 45% higher than the national figure.
Which states does Regions Bank lend in?
Florida (16), Texas (14), Alabama (9), Tennessee (9), Missouri (8), Mississippi (5). Its loans appear in 14 states, so it is closer to a regional lender.
Which industries does Regions Bank finance?
Sheet Metal Work Manufacturing (5), Full-Service Restaurants (5), Home Health Care Services (4), All Other Specialty Trade Contractors (3), Engineering Services (2). The top industry is 6% of its acquisition loans.
How have Regions Bank's acquisition loans performed?
Of 54 loans approved FY2018 to FY2021: 5.6% charged off, 58% 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
- Florida acquisitions
- Texas acquisitions
- Alabama acquisitions
- Sheet Metal Work Manufacturing
- Full-Service Restaurants
- Home Health Care Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Regions Bank.