Truist Bank: SBA business acquisition lending record
Truist Bank (home state NC) approved 151 SBA 7(a) loans to buy existing businesses since FY2018, totaling $151M. The median loan was $480,700. It ranks number 66 of 280 lenders by count and made 0.3% 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 $265,000 and $1,137,250. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (25% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Full-Service Restaurants is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 831 SBA 7(a) loans of any purpose since FY2020, totaling $950M. 88% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 25% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 5.2% charged off, 48% higher than the 3.5% national average.
Truist Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 24 | $17.1M | $404,950 | |
| FY2019 | 65 | $51.9M | $350,000 | |
| FY2020 | 32 | $27.7M | $580,950 | |
| FY2021 | 13 | $14.7M | $603,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 2 | $3.1M | $1,539,750 | |
| FY2024 | 3 | $6.5M | $1,150,000 | |
| FY2025 | 6 | $12.4M | $1,471,000 | |
| FY2026 | 6 | $17.3M | $3,622,500 |
How often do these acquisition loans fail?
Of the 134 Truist Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 7 have been charged off by the SBA, a rate of 5.2% by loan count and 3.2% by dollars. 67 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 Truist Bank is 48% 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 | 38 | 25.2% | $34.6M | |
| 2 | Virginia | 21 | 13.9% | $21.1M | |
| 3 | Georgia | 21 | 13.9% | $14.6M | |
| 4 | North Carolina | 19 | 12.6% | $17.2M | |
| 5 | Pennsylvania | 14 | 9.3% | $13.5M | |
| 6 | Maryland | 10 | 6.6% | $12.1M | |
| 7 | Texas | 10 | 6.6% | $6.9M | |
| 8 | South Carolina | 5 | 3.3% | $11.5M | |
| 9 | Tennessee | 4 | 2.6% | $4.3M | |
| 10 | Kentucky | 2 | 1.3% | $1.4M | |
| 11 | West Virginia | 2 | 1.3% | $653K | |
| 12 | Alabama | 1 | 0.7% | $5M | |
| 13 | Connecticut | 1 | 0.7% | $5M | |
| 14 | Rhode Island | 1 | 0.7% | $2.2M | |
| 15 | Indiana | 1 | 0.7% | $565K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 9 | 6.0% | $9.1M | |
| 2 | Fitness and Recreational Sports Centers | 8 | 5.3% | $2.3M | |
| 3 | Limited-Service Restaurants | 6 | 4.0% | $1.5M | |
| 4 | All Other Specialty Trade Contractors | 5 | 3.3% | $7M | |
| 5 | Child Care Services | 4 | 2.6% | $6.7M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 4 | 2.6% | $3.7M | |
| 7 | All Other Professional, Scientific, and Technical Services | 3 | 2.0% | $5.4M | |
| 8 | Custom Computer Programming Services | 3 | 2.0% | $5M | |
| 9 | Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance | 3 | 2.0% | $4.1M | |
| 10 | Engineering Services | 3 | 2.0% | $3.7M |
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 | The UPS Store | 5 | 3.3% | $1.8M | |
| 2 | Right at Home | 2 | 1.3% | $3.7M | |
| 3 | ServiceMaster | 2 | 1.3% | $2.2M | |
| 4 | Pure Barre | 2 | 1.3% | $775K | |
| 5 | Firehouse Subs | 2 | 1.3% | $626K | |
| 6 | Golden Corral | 1 | 0.7% | $5M | |
| 7 | Mosquito Joe | 1 | 0.7% | $2.5M | |
| 8 | SpeedPro Imaging | 1 | 0.7% | $1.2M | |
| 9 | LINE-X | 1 | 0.7% | $1M | |
| 10 | Smartstyle | 1 | 0.7% | $595K |
Questions buyers ask
Does Truist Bank make SBA acquisition loans?
Yes. Truist Bank approved 151 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 66 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 Truist Bank's acquisition loans?
The median was $480,700, with the middle half between $265,000 and $1,137,250. The national median is $645,250, so this lender's typical loan is 26% lower than the national figure.
Which states does Truist Bank lend in?
Florida (38), Virginia (21), Georgia (21), North Carolina (19), Pennsylvania (14), Maryland (10). Its loans span at least 15 states.
Which industries does Truist Bank finance?
Full-Service Restaurants (9), Fitness and Recreational Sports Centers (8), Limited-Service Restaurants (6), All Other Specialty Trade Contractors (5), Child Care Services (4). The top industry is 6% of its acquisition loans.
How have Truist Bank's acquisition loans performed?
Of 134 loans approved FY2018 to FY2021: 5.2% charged off, 48% 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
- Florida acquisitions
- Virginia acquisitions
- Georgia acquisitions
- Full-Service Restaurants
- Fitness and Recreational Sports Centers
- Limited-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Truist Bank.