SBA loans in Hawaii: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 58 7(a) loans to buy an existing business in Hawaii, totaling $53.5M. The median loan was $548,000, 15% lower than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Hawaii
The lenders that made the most SBA 7(a) acquisition loans in Hawaii, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 17 | 29.3% | $21.3M | |
| 2 | Central Pacific Bank | 7 | 12.1% | $2M | |
| 3 | Commonwealth Business Bank | 5 | 8.6% | $1.1M | |
| 4 | Celtic Bank Corporation | 4 | 6.9% | $5M | |
| 5 | 22nd State Bank, A Division of 22nd State Banking Company | 4 | 6.9% | $5M | |
| 6 | The Huntington National Bank | 4 | 6.9% | $4.7M | |
| 7 | First Hawaiian Bank | 3 | 5.2% | $350K | |
| 8 | Banc of California | 2 | 3.4% | $4M | |
| 9 | Mechanics Bank | 2 | 3.4% | $3.7M | |
| 10 | Grow America Fund, Incorporated | 2 | 3.4% | $1.2M |
What this tells a buyer
- Deal size band. Half of Hawaii acquisition loans fell between $250,000 and $1,105,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Hawaii accounts for 0.1% of all SBA acquisition loans and ranks number 51 of 54 states and territories by count.
- Industry concentration. All Other Amusement and Recreation Industries is the most financed business type here (4 loans, 7% of the state). The top three industries together are 17%.
- Lender concentration. Live Oak Banking Company made 29% of the state's acquisition loans. A single lender carries a large part of the market, so it is worth knowing what it prefers to finance.
- Franchise resales. 14% of acquisition loans in Hawaii involved a franchised brand; the most frequent is The UPS Store (2 loans).
Hawaii acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $5.7M | $150,000 | |
| FY2019 | 5 | $5.2M | $890,000 | |
| FY2020 | 3 | $1.2M | $170,000 | |
| FY2021 | 7 | $7.5M | $250,000 | |
| FY2022 | 3 | $1.4M | $425,000 | |
| FY2023 | 10 | $7.8M | $599,950 | |
| FY2024 | 9 | $12.8M | $842,000 | |
| FY2025 | 10 | $8.5M | $594,250 | |
| FY2026 | 4 | $3.5M | $887,500 |
How often do these acquisition loans fail?
Of the 22 Hawaii acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 11 have already been paid in full.
For comparison, Hawaii has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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 Hawaii
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | All Other Amusement and Recreation Industries | 4 | 6.9% | $4.6M | |
| 2 | Limited-Service Restaurants | 3 | 5.2% | $1.3M | |
| 3 | Beer, Wine, and Liquor Retailers | 3 | 5.2% | $1M | |
| 4 | All Other Traveler Accommodation | 2 | 3.4% | $4M | |
| 5 | Marketing Consulting Services | 2 | 3.4% | $2M | |
| 6 | All Other Specialty Trade Contractors | 2 | 3.4% | $1.9M | |
| 7 | Engineering Services | 2 | 3.4% | $1.4M | |
| 8 | Full-Service Restaurants | 2 | 3.4% | $1.2M | |
| 9 | Private Mail Centers | 2 | 3.4% | $1M | |
| 10 | Sporting Goods Retailers | 2 | 3.4% | $715K |
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Franchise brands bought in Hawaii
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 2 | 3.4% | $1M | |
| 2 | Subway | 2 | 3.4% | $430K | |
| 3 | Ameriprise Financial | 1 | 1.7% | $1.3M | |
| 4 | Papa John's | 1 | 1.7% | $885K | |
| 5 | Soccer Shots | 1 | 1.7% | $635K |
Questions buyers ask
How much do buyers borrow to buy a business in Hawaii?
The median SBA 7(a) acquisition loan in Hawaii was $548,000 across 58 loans (FY2018 to FY2026), 15% lower than the $645,250 national median. The middle half of loans ran from $250,000 to $1,105,000. 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 Hawaii?
Live Oak Banking Company (17), Central Pacific Bank (7), Commonwealth Business Bank (5), Celtic Bank Corporation (4), 22nd State Bank, A Division of 22nd State Banking Company (4). Live Oak Banking Company alone accounts for 29% of Hawaii acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Hawaii?
All Other Amusement and Recreation Industries (4), Limited-Service Restaurants (3), Beer, Wine, and Liquor Retailers (3), All Other Traveler Accommodation (2), Marketing Consulting Services (2). The top three industries make up 17% of the state's acquisition loans.
How often do SBA acquisition loans fail in Hawaii?
In the seasoned cohort (FY2018 to FY2021), among 22 Hawaii acquisition loans: none charged off, against the 3.5% national acquisition average.
How does Hawaii compare with other states?
Hawaii ranks number 51 of 54 states and territories by acquisition loan count, with 0.1% of national volume (58 of 48,902 loans) and $53.5M approved. Browse the full state ranking.
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Related
- All Other Amusement and Recreation Industries nationally
- Limited-Service Restaurants nationally
- Beer, Wine, and Liquor Retailers nationally
- Live Oak Banking Company
- Commonwealth Business Bank
- Celtic Bank Corporation
- 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.