Santander Bank, National Association: SBA business acquisition lending record
Santander Bank, National Association (home state DE) approved 115 SBA 7(a) loans to buy existing businesses since FY2018, totaling $104M. The median loan was $488,000. It ranks number 86 of 280 lenders by count and made 0.2% of all SBA acquisition loans nationally.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $250,000 and $1,200,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Massachusetts is the largest state (43% of loans). Loans appear in only 7 states, which points to a regional lender.
- Industry concentration. Beer, Wine, and Liquor Retailers is 9% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,717 SBA 7(a) loans of any purpose since FY2020, totaling $534M. 77% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 1.3% charged off, 62% lower than the 3.5% national average.
Santander Bank, National Association acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 18 | $20.8M | $680,500 | |
| FY2019 | 38 | $40.1M | $625,000 | |
| FY2020 | 16 | $10.9M | $418,000 | |
| FY2021 | 3 | $1M | $405,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 3 | $5.3M | $700,000 | |
| FY2024 | 2 | $2.3M | $1,134,900 | |
| FY2025 | 15 | $12.1M | $360,000 | |
| FY2026 | 20 | $11.9M | $400,000 |
How often do these acquisition loans fail?
Of the 75 Santander Bank, National Association 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 1.3% by loan count and 1.2% by dollars. 33 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 Santander Bank, National Association is 62% 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Massachusetts | 49 | 42.6% | $33M | |
| 2 | Connecticut | 31 | 27.0% | $35.4M | |
| 3 | New Jersey | 11 | 9.6% | $18M | |
| 4 | New York | 8 | 7.0% | $4.5M | |
| 5 | New Hampshire | 7 | 6.1% | $4.5M | |
| 6 | Rhode Island | 6 | 5.2% | $6.6M | |
| 7 | Pennsylvania | 3 | 2.6% | $2.4M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 10 | 8.7% | $5.6M | |
| 2 | Full-Service Restaurants | 6 | 5.2% | $3.9M | |
| 3 | Child Care Services | 6 | 5.2% | $2.2M | |
| 4 | Fuel Dealers | 4 | 3.5% | $2.7M | |
| 5 | Industrial Machinery and Equipment Merchant Wholesalers | 3 | 2.6% | $4.3M | |
| 6 | Home Health Care Services | 3 | 2.6% | $1.1M | |
| 7 | Plumbing, Heating, and Air-Conditioning Contractors | 2 | 1.7% | $6M | |
| 8 | Computer Systems Design Services | 2 | 1.7% | $5.3M | |
| 9 | Other Miscellaneous Nondurable Goods Merchant Wholesalers | 2 | 1.7% | $3.4M | |
| 10 | All Other Personal Services | 2 | 1.7% | $3M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | System4 | 2 | 1.7% | $3M | |
| 2 | The UPS Store | 2 | 1.7% | $1.7M | |
| 3 | American Family Care | 1 | 0.9% | $1.4M | |
| 4 | Maaco | 1 | 0.9% | $1.3M | |
| 5 | True Value | 1 | 0.9% | $1M | |
| 6 | Honey Dew Donuts | 1 | 0.9% | $159K | |
| 7 | Wild Birds Unlimited | 1 | 0.9% | $115K | |
| 8 | Edible Arrangements | 1 | 0.9% | $100K | |
| 9 | Play It Again Sports | 1 | 0.9% | $50K |
Questions buyers ask
Does Santander Bank, National Association make SBA acquisition loans?
Yes. Santander Bank, National Association approved 115 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 86 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 Santander Bank, National Association's acquisition loans?
The median was $488,000, with the middle half between $250,000 and $1,200,000. The national median is $645,250, so this lender's typical loan is 24% lower than the national figure.
Which states does Santander Bank, National Association lend in?
Massachusetts (49), Connecticut (31), New Jersey (11), New York (8), New Hampshire (7), Rhode Island (6). Its loans appear in 7 states, so it is closer to a regional lender.
Which industries does Santander Bank, National Association finance?
Beer, Wine, and Liquor Retailers (10), Full-Service Restaurants (6), Child Care Services (6), Fuel Dealers (4), Industrial Machinery and Equipment Merchant Wholesalers (3). The top industry is 9% of its acquisition loans.
How have Santander Bank, National Association's acquisition loans performed?
Of 75 loans approved FY2018 to FY2021: 1.3% charged off, 62% 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
- Massachusetts acquisitions
- Connecticut acquisitions
- New Jersey acquisitions
- Beer, Wine, and Liquor Retailers
- Full-Service Restaurants
- Child Care Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Santander Bank, National Association.