United Business Bank: SBA business acquisition lending record
United Business Bank (home state CA) approved 133 SBA 7(a) loans to buy existing businesses since FY2018, totaling $144M. The median loan was $550,000. It ranks number 77 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 $258,500 and $1,205,000. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (89% of loans). Loans appear in only 9 states, which points to a regional lender.
- Industry concentration. Limited-Service Restaurants is 32% of its acquisition loans. This is a specialist pattern.
- Overall 7(a) volume. 215 SBA 7(a) loans of any purpose since FY2020, totaling $257M. 95% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 39% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 4.4% charged off, 25% higher than the 3.5% national average.
United Business Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 24 | $14.5M | $251,750 | |
| FY2019 | 31 | $26M | $350,000 | |
| FY2020 | 16 | $17.3M | $924,900 | |
| FY2021 | 20 | $25.5M | $785,000 | |
| FY2022 | 21 | $36.9M | $720,000 | |
| FY2023 | 8 | $11.5M | $801,500 | |
| FY2024 | 6 | $8.6M | $1,011,500 | |
| FY2025 | 3 | $1.4M | $278,000 | |
| FY2026 | 4 | $1.8M | $394,000 |
How often do these acquisition loans fail?
Of the 91 United Business Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 4 have been charged off by the SBA, a rate of 4.4% by loan count and 1.3% by dollars. 54 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 United Business Bank is 25% 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 | California | 118 | 88.7% | $126M | |
| 2 | Nevada | 5 | 3.8% | $5.9M | |
| 3 | Colorado | 4 | 3.0% | $3.7M | |
| 4 | Arizona | 1 | 0.8% | $5M | |
| 5 | Oregon | 1 | 0.8% | $1.3M | |
| 6 | Hawaii | 1 | 0.8% | $885K | |
| 7 | Kansas | 1 | 0.8% | $550K | |
| 8 | Arkansas | 1 | 0.8% | $390K | |
| 9 | Washington | 1 | 0.8% | $364K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 42 | 31.6% | $21.4M | |
| 2 | Gasoline Stations with Convenience Stores | 13 | 9.8% | $33.9M | |
| 3 | Full-Service Restaurants | 11 | 8.3% | $8.4M | |
| 4 | Beer, Wine, and Liquor Retailers | 8 | 6.0% | $7.9M | |
| 5 | Snack and Nonalcoholic Beverage Bars | 8 | 6.0% | $3.5M | |
| 6 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | 7 | 5.3% | $3.3M | |
| 7 | Tire Dealers | 5 | 3.8% | $8.1M | |
| 8 | Hotels (except Casino Hotels) and Motels | 4 | 3.0% | $13.8M | |
| 9 | Child Care Services | 4 | 3.0% | $8M | |
| 10 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 3.0% | $837K |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Papa John's | 8 | 6.0% | $4.8M | |
| 2 | Big O Tires | 3 | 2.3% | $5.1M | |
| 3 | Wetzel's Pretzels | 3 | 2.3% | $2M | |
| 4 | Togo's | 3 | 2.3% | $812K | |
| 5 | Van De Pol Enterprises | 2 | 1.5% | $7.8M | |
| 6 | AM/PM Mini-Mart | 2 | 1.5% | $2.2M | |
| 7 | Jimmy John's | 2 | 1.5% | $1.7M | |
| 8 | Baskin-Robbins | 2 | 1.5% | $390K | |
| 9 | La Quinta | 1 | 0.8% | $5M | |
| 10 | Motel 6 | 1 | 0.8% | $5M |
Questions buyers ask
Does United Business Bank make SBA acquisition loans?
Yes. United Business Bank approved 133 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 77 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 United Business Bank's acquisition loans?
The median was $550,000, with the middle half between $258,500 and $1,205,000. The national median is $645,250, so this lender's typical loan is 15% lower than the national figure.
Which states does United Business Bank lend in?
California (118), Nevada (5), Colorado (4), Arizona (1), Oregon (1), Hawaii (1). Its loans appear in 9 states, so it is closer to a regional lender.
Which industries does United Business Bank finance?
Limited-Service Restaurants (42), Gasoline Stations with Convenience Stores (13), Full-Service Restaurants (11), Beer, Wine, and Liquor Retailers (8), Snack and Nonalcoholic Beverage Bars (8). The top industry is 32% of its acquisition loans.
How have United Business Bank's acquisition loans performed?
Of 91 loans approved FY2018 to FY2021: 4.4% charged off, 25% 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
- California acquisitions
- Nevada acquisitions
- Colorado acquisitions
- Limited-Service Restaurants
- Gasoline Stations with Convenience Stores
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by United Business Bank.