The Bank of Houston: SBA business acquisition lending record
The Bank of Houston (home state MO) approved 52 SBA 7(a) loans to buy existing businesses since FY2018, totaling $53.9M. The median loan was $649,000. It ranks number 171 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 $402,000 and $1,355,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Missouri is the largest state (81% of loans). Loans appear in only 7 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 140 SBA 7(a) loans of any purpose since FY2020, totaling $110M. 23% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 27% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Too few of its loans are old enough to measure a charge-off rate.
The Bank of Houston acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 3 | $1.2M | $525,000 | |
| FY2022 | 12 | $16.8M | $1,010,500 | |
| FY2023 | 6 | $5.8M | $948,000 | |
| FY2024 | 16 | $13.2M | $394,000 | |
| FY2025 | 6 | $5.8M | $754,250 | |
| FY2026 | 9 | $11M | $1,098,000 |
How often do these acquisition loans fail?
Fewer than 20 The Bank of Houston acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 5 | 9.6% | $2.6M | |
| 2 | Gasoline Stations with Convenience Stores | 3 | 5.8% | $3.3M | |
| 3 | Convenience Retailers | 3 | 5.8% | $2.8M | |
| 4 | General Automotive Repair | 3 | 5.8% | $2.3M | |
| 5 | All Other Specialty Trade Contractors | 2 | 3.8% | $5.5M | |
| 6 | Landscaping Services | 2 | 3.8% | $4.5M | |
| 7 | Other Services to Buildings and Dwellings | 2 | 3.8% | $2M | |
| 8 | All Other Personal Services | 2 | 3.8% | $1.7M | |
| 9 | Hotels (except Casino Hotels) and Motels | 1 | 1.9% | $2.8M | |
| 10 | Tax Preparation Services | 1 | 1.9% | $2.7M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Super 8 | 1 | 1.9% | $2.8M | |
| 2 | Right at Home | 1 | 1.9% | $1.3M | |
| 3 | Home Helpers Home Care | 1 | 1.9% | $1.1M | |
| 4 | Kumon | 1 | 1.9% | $525K | |
| 5 | SpeedPro Imaging | 1 | 1.9% | $378K | |
| 6 | Subway | 1 | 1.9% | $370K | |
| 7 | Elements Massage | 1 | 1.9% | $319K | |
| 8 | CertaPro Painters | 1 | 1.9% | $312K |
Questions buyers ask
Does The Bank of Houston make SBA acquisition loans?
Yes. The Bank of Houston approved 52 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 171 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 The Bank of Houston's acquisition loans?
The median was $649,000, with the middle half between $402,000 and $1,355,750. The national median is $645,250, so this lender's typical loan is in line with the national figure.
Which states does The Bank of Houston lend in?
Missouri (42), Illinois (5), Arizona (1), Tennessee (1), Kentucky (1), Kansas (1). Its loans appear in 7 states, so it is closer to a regional lender.
Which industries does The Bank of Houston finance?
Full-Service Restaurants (5), Gasoline Stations with Convenience Stores (3), Convenience Retailers (3), General Automotive Repair (3), All Other Specialty Trade Contractors (2). The top industry is 10% of its acquisition loans.
How have The Bank of Houston's acquisition loans performed?
Fewer than 20 of this lender's loans are old enough to measure. The national benchmark is 3.5% for the FY2018 to FY2021 cohort.
The purchase agreement decides what you bought, not the loan approval.
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Related
- Missouri acquisitions
- Illinois acquisitions
- Arizona acquisitions
- Full-Service Restaurants
- Gasoline Stations with Convenience Stores
- Convenience Retailers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by The Bank of Houston.