Texas Capital Bank: SBA business acquisition lending record
Texas Capital Bank (home state TX) approved 52 SBA 7(a) loans to buy existing businesses since FY2018, totaling $78.9M. The median loan was $1,197,000. It ranks number 170 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 $769,125 and $2,296,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Texas is the largest state (65% of loans). Loans appear in only 10 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 8% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 155 SBA 7(a) loans of any purpose since FY2020, totaling $227M. 85% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 21% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 6.8% charged off, 94% higher than the 3.5% national average.
Texas Capital Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $13.8M | $1,194,000 | |
| FY2019 | 18 | $30M | $1,556,000 | |
| FY2020 | 8 | $12.7M | $903,000 | |
| FY2021 | 9 | $13.4M | $1,200,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $1.3M | $1,306,000 | |
| FY2024 | 4 | $3.8M | $888,500 | |
| FY2025 | 2 | $3.5M | $1,735,250 | |
| FY2026 | 1 | $400K | $400,000 |
How often do these acquisition loans fail?
Of the 44 Texas Capital Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 6.8% by loan count and 3.4% by dollars. 17 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 Texas Capital Bank is 94% 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 | Texas | 34 | 65.4% | $53.6M | |
| 2 | Arizona | 5 | 9.6% | $5.3M | |
| 3 | Louisiana | 4 | 7.7% | $5.6M | |
| 4 | California | 3 | 5.8% | $6.2M | |
| 5 | Florida | 1 | 1.9% | $2.5M | |
| 6 | Nebraska | 1 | 1.9% | $2M | |
| 7 | Georgia | 1 | 1.9% | $1.7M | |
| 8 | Iowa | 1 | 1.9% | $982K | |
| 9 | Tennessee | 1 | 1.9% | $730K | |
| 10 | Washington | 1 | 1.9% | $279K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 4 | 7.7% | $4M | |
| 2 | General Automotive Repair | 3 | 5.8% | $4.4M | |
| 3 | Child Care Services | 2 | 3.8% | $7M | |
| 4 | Roofing Contractors | 2 | 3.8% | $4.5M | |
| 5 | Educational Support Services | 2 | 3.8% | $3.2M | |
| 6 | Drycleaning and Laundry Services (except Coin-Operated) | 2 | 3.8% | $2.9M | |
| 7 | Janitorial Services | 2 | 3.8% | $2.5M | |
| 8 | All Other Miscellaneous Electrical Equipment and Component Manufacturing | 1 | 1.9% | $3.5M | |
| 9 | Administrative Management and General Management Consulting Services | 1 | 1.9% | $3.4M | |
| 10 | Wood Kitchen Cabinet and Countertop Manufacturing | 1 | 1.9% | $3M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Kids 'R' Kids | 1 | 1.9% | $3.8M | |
| 2 | Primrose Schools | 1 | 1.9% | $3.2M | |
| 3 | AAMCO Transmissions and Total Car Care | 1 | 1.9% | $2.7M | |
| 4 | Polaris | 1 | 1.9% | $2.4M | |
| 5 | Kampgrounds of America | 1 | 1.9% | $946K | |
| 6 | FASTSIGNS | 1 | 1.9% | $897K | |
| 7 | Altitude Trampoline Park | 1 | 1.9% | $854K | |
| 8 | Buffalo Wings & Rings | 1 | 1.9% | $826K | |
| 9 | Padgett Business Services | 1 | 1.9% | $650K | |
| 10 | Sylvan Learning Centers | 1 | 1.9% | $512K |
Questions buyers ask
Does Texas Capital Bank make SBA acquisition loans?
Yes. Texas Capital Bank approved 52 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 170 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 Texas Capital Bank's acquisition loans?
The median was $1,197,000, with the middle half between $769,125 and $2,296,500. The national median is $645,250, so this lender's typical loan is 86% higher than the national figure.
Which states does Texas Capital Bank lend in?
Texas (34), Arizona (5), Louisiana (4), California (3), Florida (1), Nebraska (1). Its loans appear in 10 states, so it is closer to a regional lender.
Which industries does Texas Capital Bank finance?
Full-Service Restaurants (4), General Automotive Repair (3), Child Care Services (2), Roofing Contractors (2), Educational Support Services (2). The top industry is 8% of its acquisition loans.
How have Texas Capital Bank's acquisition loans performed?
Of 44 loans approved FY2018 to FY2021: 6.8% charged off, 94% 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
- Arizona acquisitions
- Louisiana acquisitions
- Full-Service Restaurants
- General Automotive Repair
- Child Care Services
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Texas Capital Bank.