Royal Business Bank: SBA business acquisition lending record
Royal Business Bank (home state CA) approved 35 SBA 7(a) loans to buy existing businesses since FY2018, totaling $51.9M. The median loan was $1,100,000. It ranks number 224 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 $380,500 and $1,980,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (74% of loans). Loans appear in only 8 states, which points to a regional lender.
- Industry concentration. Beer, Wine, and Liquor Retailers is 34% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 106 SBA 7(a) loans of any purpose since FY2020, totaling $130M. 91% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 43% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Too few of its loans are old enough to measure a charge-off rate.
Royal Business Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $4.8M | $4,840,000 | |
| FY2019 | 5 | $12.5M | $2,070,000 | |
| FY2020 | 3 | $7M | $1,880,000 | |
| FY2021 | 3 | $6.4M | $1,445,000 | |
| FY2022 | 2 | $3.3M | $1,640,000 | |
| FY2023 | 1 | $500K | $500,000 | |
| FY2024 | 5 | $2.4M | $401,000 | |
| FY2025 | 8 | $8.6M | $1,115,000 | |
| FY2026 | 7 | $6.5M | $350,000 |
How often do these acquisition loans fail?
Fewer than 20 Royal Business Bank acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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 | 26 | 74.3% | $23.4M | |
| 2 | Washington | 2 | 5.7% | $7.1M | |
| 3 | Nevada | 2 | 5.7% | $5M | |
| 4 | Utah | 1 | 2.9% | $4.8M | |
| 5 | Idaho | 1 | 2.9% | $4.7M | |
| 6 | Texas | 1 | 2.9% | $2.9M | |
| 7 | Oklahoma | 1 | 2.9% | $2.1M | |
| 8 | Mississippi | 1 | 2.9% | $2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 12 | 34.3% | $12M | |
| 2 | Limited-Service Restaurants | 9 | 25.7% | $9.2M | |
| 3 | Hotels (except Casino Hotels) and Motels | 6 | 17.1% | $18.7M | |
| 4 | Gasoline Stations with Convenience Stores | 3 | 8.6% | $10.6M | |
| 5 | Full-Service Restaurants | 1 | 2.9% | $492K | |
| 6 | Snack and Nonalcoholic Beverage Bars | 1 | 2.9% | $405K | |
| 7 | Private Mail Centers | 1 | 2.9% | $183K | |
| 8 | Automotive Body, Paint, and Interior Repair and Maintenance | 1 | 2.9% | $165K | |
| 9 | Meat Retailers | 1 | 2.9% | $140K |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Papa John's | 3 | 8.6% | $4.2M | |
| 2 | Jackson Food Stores | 1 | 2.9% | $4.8M | |
| 3 | Clarion Inn | 1 | 2.9% | $4.7M | |
| 4 | Americas Best Value Inn | 1 | 2.9% | $3.9M | |
| 5 | Super 8 | 1 | 2.9% | $3.1M | |
| 6 | Motel 6 | 1 | 2.9% | $2.1M | |
| 7 | Papa Murphy's Take 'N' Bake Pizza | 1 | 2.9% | $360K | |
| 8 | The UPS Store | 1 | 2.9% | $183K |
Questions buyers ask
Does Royal Business Bank make SBA acquisition loans?
Yes. Royal Business Bank approved 35 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 224 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 Royal Business Bank's acquisition loans?
The median was $1,100,000, with the middle half between $380,500 and $1,980,000. The national median is $645,250, so this lender's typical loan is 70% higher than the national figure.
Which states does Royal Business Bank lend in?
California (26), Washington (2), Nevada (2), Utah (1), Idaho (1), Texas (1). Its loans appear in 8 states, so it is closer to a regional lender.
Which industries does Royal Business Bank finance?
Beer, Wine, and Liquor Retailers (12), Limited-Service Restaurants (9), Hotels (except Casino Hotels) and Motels (6), Gasoline Stations with Convenience Stores (3), Full-Service Restaurants (1). The top industry is 34% of its acquisition loans.
How have Royal Business Bank's acquisition loans performed?
Fewer than 20 of this lender's loans are old enough to measure. The national benchmark is 3.5% for the FY2018 to FY2021 cohort.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- California acquisitions
- Washington acquisitions
- Nevada acquisitions
- Beer, Wine, and Liquor Retailers
- Limited-Service Restaurants
- Hotels (except Casino Hotels) and Motels
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Royal Business Bank.