VelocitySBA, LLC: SBA business acquisition lending record
VelocitySBA, LLC (home state TX) approved 289 SBA 7(a) loans to buy existing businesses since FY2018, totaling $323M. The median loan was $776,000. It ranks number 33 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 $468,000 and $1,443,700. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. California is the largest state (31% of loans). Loans appear in at least 15 states, which points to a national lender.
- Industry concentration. Beer, Wine, and Liquor Retailers is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 858 SBA 7(a) loans of any purpose since FY2020, totaling $911M. 96% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 21% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 6.2% charged off, 75% higher than the 3.5% national average.
VelocitySBA, LLC acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $5.7M | $670,000 | |
| FY2019 | 13 | $14.9M | $842,000 | |
| FY2020 | 25 | $38M | $1,285,000 | |
| FY2021 | 38 | $45.2M | $810,000 | |
| FY2022 | 26 | $34.1M | $1,034,000 | |
| FY2023 | 19 | $22.7M | $510,000 | |
| FY2024 | 39 | $28M | $510,000 | |
| FY2025 | 54 | $42.9M | $663,500 | |
| FY2026 | 70 | $91.5M | $1,054,000 |
How often do these acquisition loans fail?
Of the 81 VelocitySBA, LLC acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 5 have been charged off by the SBA, a rate of 6.2% by loan count and 2.2% by dollars. 49 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 VelocitySBA, LLC is 75% 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 | California | 89 | 30.8% | $82.6M | |
| 2 | Texas | 40 | 13.8% | $55.9M | |
| 3 | Colorado | 33 | 11.4% | $41.1M | |
| 4 | Florida | 27 | 9.3% | $25.7M | |
| 5 | Arizona | 16 | 5.5% | $19.9M | |
| 6 | Illinois | 16 | 5.5% | $18.2M | |
| 7 | Washington | 9 | 3.1% | $12.7M | |
| 8 | South Carolina | 9 | 3.1% | $10M | |
| 9 | Georgia | 6 | 2.1% | $7M | |
| 10 | Oregon | 4 | 1.4% | $7.2M | |
| 11 | Oklahoma | 4 | 1.4% | $6.6M | |
| 12 | Alabama | 4 | 1.4% | $4.4M | |
| 13 | Missouri | 4 | 1.4% | $4M | |
| 14 | Kentucky | 3 | 1.0% | $5.2M | |
| 15 | Tennessee | 3 | 1.0% | $3M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 29 | 10.0% | $19.5M | |
| 2 | Hotels (except Casino Hotels) and Motels | 18 | 6.2% | $42.1M | |
| 3 | Full-Service Restaurants | 14 | 4.8% | $12.6M | |
| 4 | Limited-Service Restaurants | 12 | 4.2% | $7.7M | |
| 5 | Gasoline Stations with Convenience Stores | 10 | 3.5% | $23.6M | |
| 6 | Convenience Retailers | 10 | 3.5% | $9.5M | |
| 7 | General Automotive Repair | 10 | 3.5% | $7.6M | |
| 8 | Coin-Operated Laundries and Drycleaners | 8 | 2.8% | $7.6M | |
| 9 | Automotive Body, Paint, and Interior Repair and Maintenance | 6 | 2.1% | $7.9M | |
| 10 | Car Washes | 6 | 2.1% | $7.7M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Quality Inn | 4 | 1.4% | $11.8M | |
| 2 | The UPS Store | 4 | 1.4% | $1.8M | |
| 3 | Subway | 3 | 1.0% | $1.8M | |
| 4 | Chevron | 2 | 0.7% | $6.9M | |
| 5 | Red Roof Inn | 2 | 0.7% | $5.6M | |
| 6 | Motel 6 | 2 | 0.7% | $4M | |
| 7 | Wilson Oil | 2 | 0.7% | $3.8M | |
| 8 | Tropical Smoothie Cafe | 2 | 0.7% | $567K | |
| 9 | Candlewood Suites | 1 | 0.3% | $4.8M | |
| 10 | Best Western | 1 | 0.3% | $3.2M |
Questions buyers ask
Does VelocitySBA, LLC make SBA acquisition loans?
Yes. VelocitySBA, LLC approved 289 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 33 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 VelocitySBA, LLC's acquisition loans?
The median was $776,000, with the middle half between $468,000 and $1,443,700. The national median is $645,250, so this lender's typical loan is 20% higher than the national figure.
Which states does VelocitySBA, LLC lend in?
California (89), Texas (40), Colorado (33), Florida (27), Arizona (16), Illinois (16). Its loans span at least 15 states.
Which industries does VelocitySBA, LLC finance?
Beer, Wine, and Liquor Retailers (29), Hotels (except Casino Hotels) and Motels (18), Full-Service Restaurants (14), Limited-Service Restaurants (12), Gasoline Stations with Convenience Stores (10). The top industry is 10% of its acquisition loans.
How have VelocitySBA, LLC's acquisition loans performed?
Of 81 loans approved FY2018 to FY2021: 6.2% charged off, 75% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- California acquisitions
- Texas acquisitions
- Colorado acquisitions
- Beer, Wine, and Liquor Retailers
- Hotels (except Casino Hotels) and Motels
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by VelocitySBA, LLC.