Trustmark Bank: SBA business acquisition lending record
Trustmark Bank (home state MS) approved 51 SBA 7(a) loans to buy existing businesses since FY2018, totaling $31.2M. The median loan was $481,500. It ranks number 174 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $215,500 and $875,150. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Mississippi is the largest state (75% of loans). Loans appear in only 4 states, which points to a regional lender.
- Industry concentration. Broilers and Other Meat Type Chicken Production is 27% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 213 SBA 7(a) loans of any purpose since FY2020, totaling $72.7M. 41% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 6% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.2% charged off, 18% higher than the 3.5% national average.
Trustmark Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $1.6M | $247,400 | |
| FY2019 | 3 | $2.4M | $343,500 | |
| FY2020 | 7 | $4.8M | $579,400 | |
| FY2021 | 8 | $7.4M | $845,400 | |
| FY2022 | 9 | $7.2M | $797,200 | |
| FY2023 | 7 | $3.7M | $77,800 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 5 | $1.6M | $270,000 | |
| FY2026 | 6 | $2.4M | $355,000 |
How often do these acquisition loans fail?
Of the 24 Trustmark Bank 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 4.2% by loan count and 0.3% by dollars. 15 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 Trustmark Bank is 18% 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.
The purchase agreement decides what you bought, not the loan approval.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Mississippi | 38 | 74.5% | $24.9M | |
| 2 | Alabama | 6 | 11.8% | $2M | |
| 3 | Texas | 5 | 9.8% | $3.2M | |
| 4 | Florida | 2 | 3.9% | $1.1M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Broilers and Other Meat Type Chicken Production | 14 | 27.5% | $14.5M | |
| 2 | Other Poultry Production | 6 | 11.8% | $5.4M | |
| 3 | Chicken Egg Production | 3 | 5.9% | $1.7M | |
| 4 | Full-Service Restaurants | 3 | 5.9% | $837K | |
| 5 | Child Care Services | 3 | 5.9% | $205K | |
| 6 | Security Systems Services (except Locksmiths) | 2 | 3.9% | $785K | |
| 7 | Sports and Recreation Instruction | 2 | 3.9% | $710K | |
| 8 | Custom Architectural Woodwork and Millwork Manufacturing | 2 | 3.9% | $207K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Soccer Shots | 1 | 2.0% | $308K | |
| 2 | Fleet Feet Sports | 1 | 2.0% | $215K |
Questions buyers ask
Does Trustmark Bank make SBA acquisition loans?
Yes. Trustmark Bank approved 51 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 174 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 Trustmark Bank's acquisition loans?
The median was $481,500, with the middle half between $215,500 and $875,150. The national median is $645,250, so this lender's typical loan is 25% lower than the national figure.
Which states does Trustmark Bank lend in?
Mississippi (38), Alabama (6), Texas (5), Florida (2). Its loans appear in 4 states, so it is closer to a regional lender.
Which industries does Trustmark Bank finance?
Broilers and Other Meat Type Chicken Production (14), Other Poultry Production (6), Chicken Egg Production (3), Full-Service Restaurants (3), Child Care Services (3). The top industry is 27% of its acquisition loans.
How have Trustmark Bank's acquisition loans performed?
Of 24 loans approved FY2018 to FY2021: 4.2% charged off, 18% 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.
Request Engagement AssessmentAll 50 states. Free consultation.
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Related
- Mississippi acquisitions
- Alabama acquisitions
- Texas acquisitions
- Broilers and Other Meat Type Chicken Production
- Other Poultry Production
- Chicken Egg Production
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Trustmark Bank.