Simmons Bank: SBA business acquisition lending record
Simmons Bank (home state AR) approved 134 SBA 7(a) loans to buy existing businesses since FY2018, totaling $107M. The median loan was $462,900. It ranks number 75 of 280 lenders by count and made 0.3% of all SBA acquisition loans nationally.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $247,350 and $1,164,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Texas is the largest state (22% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Other Personal Care Services is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 267 SBA 7(a) loans of any purpose since FY2020, totaling $145M. 93% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 42% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 5.8% charged off, 64% higher than the 3.5% national average.
Simmons Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 42 | $30.8M | $467,500 | |
| FY2019 | 37 | $29.2M | $350,000 | |
| FY2020 | 17 | $6.8M | $334,000 | |
| FY2021 | 8 | $5.3M | $365,850 | |
| FY2022 | 10 | $15.2M | $1,575,750 | |
| FY2023 | 12 | $8.7M | $499,600 | |
| FY2024 | 6 | $7.7M | $770,750 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 2 | $3.2M | $1,601,000 |
How often do these acquisition loans fail?
Of the 104 Simmons Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 6 have been charged off by the SBA, a rate of 5.8% by loan count and 1.7% by dollars. 51 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 Simmons Bank is 64% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 30 | 22.4% | $32.3M | |
| 2 | Missouri | 30 | 22.4% | $25.6M | |
| 3 | Arkansas | 23 | 17.2% | $13.3M | |
| 4 | Tennessee | 11 | 8.2% | $10.7M | |
| 5 | California | 10 | 7.5% | $5.6M | |
| 6 | Oklahoma | 6 | 4.5% | $7.4M | |
| 7 | Illinois | 4 | 3.0% | $3M | |
| 8 | Kansas | 4 | 3.0% | $1.7M | |
| 9 | New Jersey | 3 | 2.2% | $1.5M | |
| 10 | Georgia | 3 | 2.2% | $978K | |
| 11 | Florida | 2 | 1.5% | $1.1M | |
| 12 | Arizona | 2 | 1.5% | $460K | |
| 13 | North Carolina | 1 | 0.7% | $2M | |
| 14 | Virginia | 1 | 0.7% | $385K | |
| 15 | Colorado | 1 | 0.7% | $310K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Other Personal Care Services | 13 | 9.7% | $5M | |
| 2 | Beauty Salons | 7 | 5.2% | $2.4M | |
| 3 | Full-Service Restaurants | 6 | 4.5% | $5.7M | |
| 4 | Fitness and Recreational Sports Centers | 6 | 4.5% | $2.3M | |
| 5 | Hotels (except Casino Hotels) and Motels | 5 | 3.7% | $5.9M | |
| 6 | All Other Personal Services | 5 | 3.7% | $4.4M | |
| 7 | Limited-Service Restaurants | 5 | 3.7% | $1.5M | |
| 8 | Plumbing, Heating, and Air-Conditioning Contractors | 4 | 3.0% | $3.8M | |
| 9 | All Other Specialty Trade Contractors | 3 | 2.2% | $4.3M | |
| 10 | Beer, Wine, and Liquor Retailers | 3 | 2.2% | $2.4M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | European Wax Center | 10 | 7.5% | $4.8M | |
| 2 | Amazing Lash Studio | 4 | 3.0% | $3.5M | |
| 3 | Club Pilates | 3 | 2.2% | $1M | |
| 4 | Sport Clips | 3 | 2.2% | $538K | |
| 5 | ServiceMaster | 2 | 1.5% | $2.1M | |
| 6 | Massage Envy | 2 | 1.5% | $1.4M | |
| 7 | Red Lion Hotels | 2 | 1.5% | $1.3M | |
| 8 | The Joint Chiropractic | 2 | 1.5% | $660K | |
| 9 | The UPS Store | 2 | 1.5% | $478K | |
| 10 | Hand and Stone Massage and Facial Spa | 2 | 1.5% | $400K |
Questions buyers ask
Does Simmons Bank make SBA acquisition loans?
Yes. Simmons Bank approved 134 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 75 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 Simmons Bank's acquisition loans?
The median was $462,900, with the middle half between $247,350 and $1,164,750. The national median is $645,250, so this lender's typical loan is 28% lower than the national figure.
Which states does Simmons Bank lend in?
Texas (30), Missouri (30), Arkansas (23), Tennessee (11), California (10), Oklahoma (6). Its loans span at least 15 states.
Which industries does Simmons Bank finance?
Other Personal Care Services (13), Beauty Salons (7), Full-Service Restaurants (6), Fitness and Recreational Sports Centers (6), Hotels (except Casino Hotels) and Motels (5). The top industry is 10% of its acquisition loans.
How have Simmons Bank's acquisition loans performed?
Of 104 loans approved FY2018 to FY2021: 5.8% charged off, 64% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
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Related
- Texas acquisitions
- Missouri acquisitions
- Arkansas acquisitions
- Other Personal Care Services
- Beauty Salons
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Simmons Bank.