The Bank of Princeton: SBA business acquisition lending record
The Bank of Princeton (home state NJ) approved 48 SBA 7(a) loans to buy existing businesses since FY2018, totaling $51.6M. The median loan was $295,000. It ranks number 185 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $210,000 and $793,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Pennsylvania is the largest state (46% of loans). Loans appear in only 5 states, which points to a regional lender.
- Industry concentration. Drycleaning and Laundry Services (except Coin-Operated) is 25% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 20 SBA 7(a) loans of any purpose since FY2020, totaling $8M. 71% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 15% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 2.2% charged off, 38% lower than the 3.5% national average.
The Bank of Princeton acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 20 | $35.7M | $345,000 | |
| FY2019 | 20 | $12.7M | $270,000 | |
| FY2020 | 3 | $1M | $280,000 | |
| FY2021 | 3 | $1.5M | $580,000 | |
| FY2022 | 1 | $400K | $400,000 | |
| FY2023 | 1 | $380K | $380,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 46 The Bank of Princeton 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 2.2% by loan count and 0.7% by dollars. 29 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 The Bank of Princeton is 38% 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 22 | 45.8% | $24.8M | |
| 2 | New York | 15 | 31.3% | $17.2M | |
| 3 | New Jersey | 9 | 18.8% | $8.2M | |
| 4 | New Hampshire | 1 | 2.1% | $1.3M | |
| 5 | Connecticut | 1 | 2.1% | $260K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Drycleaning and Laundry Services (except Coin-Operated) | 12 | 25.0% | $3.1M | |
| 2 | Hotels (except Casino Hotels) and Motels | 8 | 16.7% | $33.5M | |
| 3 | Beer, Wine, and Liquor Retailers | 6 | 12.5% | $3.9M | |
| 4 | Limited-Service Restaurants | 6 | 12.5% | $2.6M | |
| 5 | Nail Salons | 5 | 10.4% | $1.3M | |
| 6 | All Other General Merchandise Retailers | 3 | 6.3% | $1.1M | |
| 7 | Full-Service Restaurants | 2 | 4.2% | $3.2M | |
| 8 | Drinking Places (Alcoholic Beverages) | 2 | 4.2% | $360K | |
| 9 | Car Washes | 1 | 2.1% | $2.3M | |
| 10 | Beauty Salons | 1 | 2.1% | $150K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ramada | 1 | 2.1% | $5M | |
| 2 | Wingate | 1 | 2.1% | $5M | |
| 3 | Best Western | 1 | 2.1% | $5M | |
| 4 | Comfort Inn | 1 | 2.1% | $3.7M | |
| 5 | Days Inn | 1 | 2.1% | $3.6M | |
| 6 | Sunoco | 1 | 2.1% | $2.3M | |
| 7 | Econo Lodge | 1 | 2.1% | $1.3M |
Questions buyers ask
Does The Bank of Princeton make SBA acquisition loans?
Yes. The Bank of Princeton approved 48 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 185 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 Princeton's acquisition loans?
The median was $295,000, with the middle half between $210,000 and $793,750. The national median is $645,250, so this lender's typical loan is 54% lower than the national figure.
Which states does The Bank of Princeton lend in?
Pennsylvania (22), New York (15), New Jersey (9), New Hampshire (1), Connecticut (1). Its loans appear in 5 states, so it is closer to a regional lender.
Which industries does The Bank of Princeton finance?
Drycleaning and Laundry Services (except Coin-Operated) (12), Hotels (except Casino Hotels) and Motels (8), Beer, Wine, and Liquor Retailers (6), Limited-Service Restaurants (6), Nail Salons (5). The top industry is 25% of its acquisition loans.
How have The Bank of Princeton's acquisition loans performed?
Of 46 loans approved FY2018 to FY2021: 2.2% charged off, 38% 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.
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Related
- Pennsylvania acquisitions
- New York acquisitions
- New Jersey acquisitions
- Drycleaning and Laundry Services (except Coin-Operated)
- Hotels (except Casino Hotels) and Motels
- Beer, Wine, and Liquor Retailers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by The Bank of Princeton.