Village Bank: SBA business acquisition lending record
Village Bank (home state MN) approved 59 SBA 7(a) loans to buy existing businesses since FY2018, totaling $53.1M. The median loan was $501,300. It ranks number 148 of 280 lenders by count and made 0.1% 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 $258,900 and $980,350. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Minnesota is the largest state (97% of loans). Loans appear in only 2 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 12% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 136 SBA 7(a) loans of any purpose since FY2020, totaling $100M. 86% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 14% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2019 to FY2021: 14.3% charged off, 306% higher than the 3.5% national average.
Village Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $489K | $489,000 | |
| FY2020 | 4 | $1.7M | $378,200 | |
| FY2021 | 23 | $19.3M | $602,600 | |
| FY2022 | 17 | $16.9M | $525,100 | |
| FY2023 | 10 | $12.4M | $418,750 | |
| FY2024 | 4 | $2.3M | $314,150 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 28 Village Bank acquisition loans approved from FY2019 to FY2021 (the seasoned cohort, every loan at least about five years old), 4 have been charged off by the SBA, a rate of 14.3% by loan count and 11.4% by dollars. 8 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the FY2018 to FY2021 cohort is 3.5%, so Village Bank is 306% 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.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 7 | 11.9% | $8.1M | |
| 2 | All Other Specialty Trade Contractors | 4 | 6.8% | $4.8M | |
| 3 | Sporting Goods Retailers | 2 | 3.4% | $4M | |
| 4 | Machine Shops | 2 | 3.4% | $3.9M | |
| 5 | Assisted Living Facilities for the Elderly | 2 | 3.4% | $2.4M | |
| 6 | All Other Professional, Scientific, and Technical Services | 2 | 3.4% | $2.2M | |
| 7 | Gasoline Stations with Convenience Stores | 2 | 3.4% | $1.5M | |
| 8 | Residential Remodelers | 2 | 3.4% | $1.2M | |
| 9 | Masonry Contractors | 2 | 3.4% | $1.1M | |
| 10 | Beer, Wine, and Liquor Retailers | 2 | 3.4% | $949K |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beef 'O' Brady's | 2 | 3.4% | $550K | |
| 2 | Miracle Method Surface Refinishing | 1 | 1.7% | $500K | |
| 3 | MGM Wine & Spirits | 1 | 1.7% | $447K | |
| 4 | Servpro | 1 | 1.7% | $390K |
Questions buyers ask
Does Village Bank make SBA acquisition loans?
Yes. Village Bank approved 59 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 148 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 Village Bank's acquisition loans?
The median was $501,300, with the middle half between $258,900 and $980,350. The national median is $645,250, so this lender's typical loan is 22% lower than the national figure.
Which states does Village Bank lend in?
Minnesota (57), Wisconsin (2). Its loans appear in 2 states, so it is closer to a regional lender.
Which industries does Village Bank finance?
Full-Service Restaurants (7), All Other Specialty Trade Contractors (4), Sporting Goods Retailers (2), Machine Shops (2), Assisted Living Facilities for the Elderly (2). The top industry is 12% of its acquisition loans.
How have Village Bank's acquisition loans performed?
Of 28 loans approved FY2019 to FY2021: 14.3% charged off, 306% 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
- Minnesota acquisitions
- Wisconsin acquisitions
- Full-Service Restaurants
- All Other Specialty Trade Contractors
- Sporting Goods Retailers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Village Bank.