Southern Bank: SBA business acquisition lending record
Southern Bank (home state MO) approved 54 SBA 7(a) loans to buy existing businesses since FY2018, totaling $38.2M. The median loan was $379,150. It ranks number 165 of 280 lenders by count and made 0.1% 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 $224,850 and $915,675. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Missouri is the largest state (44% of loans). Loans appear in only 12 states, which points to a regional lender.
- Industry concentration. Limited-Service Restaurants is 13% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 153 SBA 7(a) loans of any purpose since FY2020, totaling $72.4M. 4% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 26% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.9% charged off, 39% higher than the 3.5% national average.
Southern Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $3.5M | $306,300 | |
| FY2019 | 7 | $7.2M | $429,800 | |
| FY2020 | 8 | $6.2M | $307,350 | |
| FY2021 | 20 | $16.3M | $541,700 | |
| FY2022 | 5 | $2.3M | $388,300 | |
| FY2023 | 1 | $1M | $1,046,800 | |
| FY2024 | 1 | $309K | $309,200 | |
| FY2025 | 2 | $534K | $266,750 | |
| FY2026 | 4 | $801K | $171,500 |
How often do these acquisition loans fail?
Of the 41 Southern Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 4.9% by loan count and 5.3% by dollars. 23 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 Southern Bank is 39% 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.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Missouri | 24 | 44.4% | $17M | |
| 2 | Florida | 6 | 11.1% | $3.4M | |
| 3 | Arkansas | 5 | 9.3% | $5.3M | |
| 4 | Kansas | 5 | 9.3% | $4.7M | |
| 5 | Illinois | 4 | 7.4% | $2.1M | |
| 6 | Texas | 3 | 5.6% | $2.6M | |
| 7 | California | 2 | 3.7% | $1.1M | |
| 8 | North Carolina | 1 | 1.9% | $658K | |
| 9 | Indiana | 1 | 1.9% | $479K | |
| 10 | Oregon | 1 | 1.9% | $388K | |
| 11 | South Carolina | 1 | 1.9% | $331K | |
| 12 | Louisiana | 1 | 1.9% | $187K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 7 | 13.0% | $5.3M | |
| 2 | Plumbing, Heating, and Air-Conditioning Contractors | 5 | 9.3% | $2.9M | |
| 3 | Full-Service Restaurants | 4 | 7.4% | $2.8M | |
| 4 | Offices of Chiropractors | 2 | 3.7% | $1.1M | |
| 5 | Cemeteries and Crematories | 2 | 3.7% | $765K | |
| 6 | Other Building Material Dealers | 2 | 3.7% | $724K | |
| 7 | Other Personal Care Services | 2 | 3.7% | $513K | |
| 8 | Clothing and Clothing Accessories Retailers | 2 | 3.7% | $473K | |
| 9 | Offices of Physicians, Mental Health Specialists | 2 | 3.7% | $343K | |
| 10 | All Other Miscellaneous Manufacturing | 1 | 1.9% | $3.8M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Tropical Smoothie Cafe | 3 | 5.6% | $1.6M | |
| 2 | Imo's Pizza | 2 | 3.7% | $487K | |
| 3 | Schlotzsky's | 1 | 1.9% | $2.2M | |
| 4 | Jimmy John's | 1 | 1.9% | $943K | |
| 5 | Maaco | 1 | 1.9% | $388K | |
| 6 | Plato's Closet | 1 | 1.9% | $370K | |
| 7 | Subway | 1 | 1.9% | $234K | |
| 8 | Baskin-Robbins | 1 | 1.9% | $130K |
Questions buyers ask
Does Southern Bank make SBA acquisition loans?
Yes. Southern Bank approved 54 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 165 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 Southern Bank's acquisition loans?
The median was $379,150, with the middle half between $224,850 and $915,675. The national median is $645,250, so this lender's typical loan is 41% lower than the national figure.
Which states does Southern Bank lend in?
Missouri (24), Florida (6), Arkansas (5), Kansas (5), Illinois (4), Texas (3). Its loans appear in 12 states, so it is closer to a regional lender.
Which industries does Southern Bank finance?
Limited-Service Restaurants (7), Plumbing, Heating, and Air-Conditioning Contractors (5), Full-Service Restaurants (4), Offices of Chiropractors (2), Cemeteries and Crematories (2). The top industry is 13% of its acquisition loans.
How have Southern Bank's acquisition loans performed?
Of 41 loans approved FY2018 to FY2021: 4.9% charged off, 39% 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
- Missouri acquisitions
- Florida acquisitions
- Arkansas acquisitions
- Limited-Service Restaurants
- Plumbing, Heating, and Air-Conditioning Contractors
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Southern Bank.