TowneBank: SBA business acquisition lending record
TowneBank (home state VA) approved 308 SBA 7(a) loans to buy existing businesses since FY2018, totaling $345M. The median loan was $847,500. It ranks number 30 of 280 lenders by count and made 0.6% 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 $494,750 and $1,388,750. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (19% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Limited-Service Restaurants is 7% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,152 SBA 7(a) loans of any purpose since FY2020, totaling $1.0B. 90% 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: 4.0% charged off, 14% higher than the 3.5% national average.
TowneBank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $2.7M | $1,327,600 | |
| FY2019 | 1 | $300K | $300,000 | |
| FY2020 | 15 | $14.3M | $460,000 | |
| FY2021 | 32 | $33.3M | $696,900 | |
| FY2022 | 27 | $32.4M | $794,500 | |
| FY2023 | 46 | $42.3M | $641,700 | |
| FY2024 | 53 | $63.7M | $974,800 | |
| FY2025 | 69 | $75.7M | $893,200 | |
| FY2026 | 63 | $80.4M | $880,000 |
How often do these acquisition loans fail?
Of the 50 TowneBank 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 4.0% by loan count and 1.1% by dollars. 22 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 TowneBank is 14% 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 | Florida | 58 | 18.8% | $58.6M | |
| 2 | North Carolina | 48 | 15.6% | $61.7M | |
| 3 | Texas | 26 | 8.4% | $39.4M | |
| 4 | Virginia | 26 | 8.4% | $33.6M | |
| 5 | California | 18 | 5.8% | $25.9M | |
| 6 | Michigan | 12 | 3.9% | $9.5M | |
| 7 | Colorado | 9 | 2.9% | $8M | |
| 8 | Maryland | 9 | 2.9% | $6.9M | |
| 9 | South Carolina | 9 | 2.9% | $6M | |
| 10 | New York | 7 | 2.3% | $8.8M | |
| 11 | Pennsylvania | 7 | 2.3% | $6.4M | |
| 12 | Kentucky | 6 | 1.9% | $6.9M | |
| 13 | New Jersey | 6 | 1.9% | $6.6M | |
| 14 | Arizona | 6 | 1.9% | $6.6M | |
| 15 | Illinois | 5 | 1.6% | $7.6M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 21 | 6.8% | $16.9M | |
| 2 | Full-Service Restaurants | 19 | 6.2% | $18.7M | |
| 3 | All Other Specialty Trade Contractors | 9 | 2.9% | $18.7M | |
| 4 | Plumbing, Heating, and Air-Conditioning Contractors | 9 | 2.9% | $8.3M | |
| 5 | General Automotive Repair | 8 | 2.6% | $8.8M | |
| 6 | Electrical Contractors and Other Wiring Installation Contractors | 7 | 2.3% | $17.1M | |
| 7 | Child Care Services | 7 | 2.3% | $8.6M | |
| 8 | All Other Professional, Scientific, and Technical Services | 6 | 1.9% | $6.9M | |
| 9 | Beer, Wine, and Liquor Retailers | 6 | 1.9% | $4.3M | |
| 10 | All Other Personal Services | 5 | 1.6% | $7.3M |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Domino's Pizza | 14 | 4.5% | $11.2M | |
| 2 | Holiday Inn Express | 2 | 0.6% | $8.5M | |
| 3 | Primrose Schools | 1 | 0.3% | $3.9M | |
| 4 | College Hunks Hauling Junk | 1 | 0.3% | $1.9M | |
| 5 | Tropical Smoothie Cafe | 1 | 0.3% | $1.8M | |
| 6 | Motel 6 | 1 | 0.3% | $1.4M | |
| 7 | PuroClean | 1 | 0.3% | $1.2M | |
| 8 | AAMCO Transmissions and Total Car Care | 1 | 0.3% | $1.2M | |
| 9 | CertaPro Painters | 1 | 0.3% | $999K | |
| 10 | Express Employment Professionals | 1 | 0.3% | $800K |
Questions buyers ask
Does TowneBank make SBA acquisition loans?
Yes. TowneBank approved 308 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 30 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 TowneBank's acquisition loans?
The median was $847,500, with the middle half between $494,750 and $1,388,750. The national median is $645,250, so this lender's typical loan is 31% higher than the national figure.
Which states does TowneBank lend in?
Florida (58), North Carolina (48), Texas (26), Virginia (26), California (18), Michigan (12). Its loans span at least 15 states.
Which industries does TowneBank finance?
Limited-Service Restaurants (21), Full-Service Restaurants (19), All Other Specialty Trade Contractors (9), Plumbing, Heating, and Air-Conditioning Contractors (9), General Automotive Repair (8). The top industry is 7% of its acquisition loans.
How have TowneBank's acquisition loans performed?
Of 50 loans approved FY2018 to FY2021: 4.0% charged off, 14% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
The purchase agreement decides what you bought, not the loan approval.
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Related
- Florida acquisitions
- North Carolina acquisitions
- Texas acquisitions
- Limited-Service Restaurants
- Full-Service Restaurants
- All Other Specialty Trade Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by TowneBank.