SBA loans in Colorado: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,870 7(a) loans to buy an existing business in Colorado, totaling $2.0B. The median loan was $661,000, in line with the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Colorado
The lenders that made the most SBA 7(a) acquisition loans in Colorado, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hanmi Bank | 289 | 15.5% | $257M | |
| 2 | Live Oak Banking Company | 201 | 10.7% | $237M | |
| 3 | The Huntington National Bank | 116 | 6.2% | $78.2M | |
| 4 | Wells Fargo Bank National Association | 71 | 3.8% | $57.7M | |
| 5 | Midwest Regional Bank | 44 | 2.4% | $48.5M | |
| 6 | BMO Bank National Association | 42 | 2.2% | $34.5M | |
| 7 | Busey Bank | 37 | 2.0% | $42.3M | |
| 8 | Zions Bancorporation, National Association | 36 | 1.9% | $34.1M | |
| 9 | First Internet Bank of Indiana | 35 | 1.9% | $30.6M | |
| 10 | PNC Bank, National Association | 34 | 1.8% | $55.9M |
What this tells a buyer
- Deal size band. Half of Colorado acquisition loans fell between $339,175 and $1,392,050. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Colorado accounts for 3.8% of all SBA acquisition loans and ranks number 5 of 54 states and territories by count.
- Industry concentration. Beer, Wine, and Liquor Retailers is the most financed business type here (306 loans, 16% of the state). The top three industries together are 24%.
- Lender concentration. Hanmi Bank made 15% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 12% of acquisition loans in Colorado involved a franchised brand; the most frequent is The Goddard School (7 loans).
Colorado acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 135 | $124M | $575,000 | |
| FY2019 | 194 | $177M | $601,400 | |
| FY2020 | 178 | $183M | $632,250 | |
| FY2021 | 199 | $220M | $670,000 | |
| FY2022 | 201 | $212M | $638,000 | |
| FY2023 | 188 | $200M | $657,850 | |
| FY2024 | 234 | $239M | $646,500 | |
| FY2025 | 290 | $322M | $704,000 | |
| FY2026 | 251 | $302M | $796,000 |
How often do these acquisition loans fail?
Of the 705 Colorado acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 29 have been charged off by the SBA, a rate of 4.1% by loan count and 1.6% by dollars. 373 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 Colorado is 17% 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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Top industries in Colorado
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 306 | 16.4% | $243M | |
| 2 | Full-Service Restaurants | 77 | 4.1% | $50.7M | |
| 3 | Hotels (except Casino Hotels) and Motels | 70 | 3.7% | $183M | |
| 4 | Plumbing, Heating, and Air-Conditioning Contractors | 47 | 2.5% | $60.6M | |
| 5 | Limited-Service Restaurants | 46 | 2.5% | $24.9M | |
| 6 | General Automotive Repair | 41 | 2.2% | $34.4M | |
| 7 | All Other Specialty Trade Contractors | 38 | 2.0% | $44M | |
| 8 | Child Care Services | 33 | 1.8% | $56.8M | |
| 9 | Landscaping Services | 32 | 1.7% | $34.8M | |
| 10 | Offices of Chiropractors | 26 | 1.4% | $12M |
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Franchise brands bought in Colorado
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Goddard School | 7 | 0.4% | $16.4M | |
| 2 | Ace Hardware | 7 | 0.4% | $7.2M | |
| 3 | Primrose Schools | 6 | 0.3% | $19.7M | |
| 4 | World Fuel Services | 6 | 0.3% | $7.4M | |
| 5 | Rodeway Inn | 5 | 0.3% | $12.3M | |
| 6 | Marco's Pizza | 5 | 0.3% | $6.8M | |
| 7 | Cold Stone Creamery | 5 | 0.3% | $2.1M | |
| 8 | The UPS Store | 5 | 0.3% | $1.9M | |
| 9 | Super 8 | 4 | 0.2% | $10.7M | |
| 10 | Visiting Angels | 4 | 0.2% | $7.6M | |
| 11 | Papa Murphy's Take 'N' Bake Pizza | 4 | 0.2% | $1.5M | |
| 12 | HomeTowne Studios by Red Roof | 3 | 0.2% | $14.2M | |
| 13 | La Quinta | 3 | 0.2% | $12.5M | |
| 14 | Travelodge | 3 | 0.2% | $10.4M | |
| 15 | Days Inn | 3 | 0.2% | $9.4M |
Acquisitions by industry in Colorado
The 20 industries with the most acquisition loans in Colorado (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
Questions buyers ask
How much do buyers borrow to buy a business in Colorado?
The median SBA 7(a) acquisition loan in Colorado was $661,000 across 1,870 loans (FY2018 to FY2026), in line with the $645,250 national median. The middle half of loans ran from $339,175 to $1,392,050. A loan is not the purchase price: it is net of the buyer's equity injection and usually includes some working capital.
Which banks make the most SBA acquisition loans in Colorado?
Hanmi Bank (289), Live Oak Banking Company (201), The Huntington National Bank (116), Wells Fargo Bank National Association (71), Midwest Regional Bank (44). Hanmi Bank alone accounts for 15% of Colorado acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Colorado?
Beer, Wine, and Liquor Retailers (306), Full-Service Restaurants (77), Hotels (except Casino Hotels) and Motels (70), Plumbing, Heating, and Air-Conditioning Contractors (47), Limited-Service Restaurants (46). The top three industries make up 24% of the state's acquisition loans.
How often do SBA acquisition loans fail in Colorado?
In the seasoned cohort (FY2018 to FY2021), among 705 Colorado acquisition loans: 4.1% charged off, 17% higher than the 3.5% national acquisition average.
How does Colorado compare with other states?
Colorado ranks number 5 of 54 states and territories by acquisition loan count, with 3.8% of national volume (1,870 of 48,902 loans) and $2.0B approved. Browse the full state ranking.
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Related
- Beer, Wine, and Liquor Retailers nationally
- Full-Service Restaurants nationally
- Hotels (except Casino Hotels) and Motels nationally
- Hanmi Bank
- Live Oak Banking Company
- The Huntington National Bank
- All states
- Buyer's guide to the data
State is the project state recorded by the lender (where the acquired business operates), not the borrower's mailing state.