Salem Five Cents Savings Bank: SBA business acquisition lending record
Salem Five Cents Savings Bank (home state MA) approved 35 SBA 7(a) loans to buy existing businesses since FY2018, totaling $16M. The median loan was $250,000. It ranks number 225 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $126,000 and $495,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Massachusetts is the largest state (89% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Janitorial Services is 14% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 269 SBA 7(a) loans of any purpose since FY2020, totaling $64.8M. 80% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 11% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.8% charged off, 35% higher than the 3.5% national average.
Salem Five Cents Savings Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $1.2M | $240,000 | |
| FY2019 | 5 | $1.8M | $396,000 | |
| FY2020 | 7 | $6M | $424,800 | |
| FY2021 | 6 | $1.5M | $239,550 | |
| FY2022 | 7 | $2.9M | $135,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 3 | $1.4M | $437,500 | |
| FY2025 | 3 | $340K | $90,000 | |
| FY2026 | 1 | $900K | $900,000 |
How often do these acquisition loans fail?
Of the 21 Salem Five Cents Savings 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 4.8% by loan count and 3.0% by dollars. 7 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 Salem Five Cents Savings Bank is 35% 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.
Seller note standby terms and third-party consents are reviewed before closing.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Massachusetts | 31 | 88.6% | $14.4M | |
| 2 | New Hampshire | 4 | 11.4% | $1.6M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Janitorial Services | 5 | 14.3% | $2M | |
| 2 | Other Accounting Services | 4 | 11.4% | $1.1M | |
| 3 | Pet Care (except Veterinary) Services | 3 | 8.6% | $982K | |
| 4 | Beauty Salons | 3 | 8.6% | $266K | |
| 5 | Public Relations Agencies | 2 | 5.7% | $4.9M | |
| 6 | Coin-Operated Laundries and Drycleaners | 2 | 5.7% | $1M | |
| 7 | Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance | 2 | 5.7% | $140K | |
| 8 | Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers | 1 | 2.9% | $865K | |
| 9 | Landscape Architectural Services | 1 | 2.9% | $821K |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Jackson Hewitt Tax Service | 2 | 5.7% | $720K | |
| 2 | Honey Dew Donuts | 1 | 2.9% | $556K |
Questions buyers ask
Does Salem Five Cents Savings Bank make SBA acquisition loans?
Yes. Salem Five Cents Savings Bank approved 35 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 225 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 Salem Five Cents Savings Bank's acquisition loans?
The median was $250,000, with the middle half between $126,000 and $495,000. The national median is $645,250, so this lender's typical loan is 61% lower than the national figure.
Which states does Salem Five Cents Savings Bank lend in?
Massachusetts (31), New Hampshire (4). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does Salem Five Cents Savings Bank finance?
Janitorial Services (5), Other Accounting Services (4), Pet Care (except Veterinary) Services (3), Beauty Salons (3), Public Relations Agencies (2). The top industry is 14% of its acquisition loans.
How have Salem Five Cents Savings Bank's acquisition loans performed?
Of 21 loans approved FY2018 to FY2021: 4.8% charged off, 35% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- Massachusetts acquisitions
- New Hampshire acquisitions
- Janitorial Services
- Other Accounting Services
- Pet Care (except Veterinary) Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Salem Five Cents Savings Bank.