SBA loans in Iowa: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 454 7(a) loans to buy an existing business in Iowa, totaling $329M. The median loan was $332,050, 49% lower than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Iowa
The lenders that made the most SBA 7(a) acquisition loans in Iowa, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Lincoln Savings Bank | 30 | 6.6% | $26.7M | |
| 2 | Northwest Bank | 30 | 6.6% | $22.4M | |
| 3 | Live Oak Banking Company | 15 | 3.3% | $17.6M | |
| 4 | Nicolet National Bank | 15 | 3.3% | $5.3M | |
| 5 | Bankers Trust Company | 15 | 3.3% | $2.4M | |
| 6 | Farmers State Bank | 14 | 3.1% | $6.2M | |
| 7 | United Bank of Iowa | 12 | 2.6% | $5.6M | |
| 8 | First Interstate Bank | 10 | 2.2% | $11.4M | |
| 9 | Clear Lake Bank & Trust Company | 10 | 2.2% | $4.8M | |
| 10 | The Huntington National Bank | 9 | 2.0% | $9.5M |
What this tells a buyer
- Deal size band. Half of Iowa acquisition loans fell between $158,225 and $962,750. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Iowa accounts for 0.9% of all SBA acquisition loans and ranks number 29 of 54 states and territories by count.
- Industry concentration. Full-Service Restaurants is the most financed business type here (30 loans, 7% of the state). The top three industries together are 16%.
- Lender concentration. Lincoln Savings Bank made 7% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 18% of acquisition loans in Iowa involved a franchised brand; the most frequent is Super 8 (6 loans).
Iowa acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 41 | $29.4M | $291,000 | |
| FY2019 | 50 | $24.8M | $266,000 | |
| FY2020 | 54 | $36.2M | $460,000 | |
| FY2021 | 65 | $56M | $409,000 | |
| FY2022 | 50 | $36.9M | $289,150 | |
| FY2023 | 32 | $18.6M | $305,250 | |
| FY2024 | 52 | $37M | $360,000 | |
| FY2025 | 61 | $42.2M | $237,000 | |
| FY2026 | 49 | $48.3M | $400,000 |
How often do these acquisition loans fail?
Of the 209 Iowa acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 8 have been charged off by the SBA, a rate of 3.8% by loan count and 3.4% by dollars. 124 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 Iowa is 9% 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 Iowa
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 30 | 6.6% | $7.9M | |
| 2 | Hotels (except Casino Hotels) and Motels | 21 | 4.6% | $38.4M | |
| 3 | Limited-Service Restaurants | 20 | 4.4% | $12.7M | |
| 4 | Offices of Chiropractors | 16 | 3.5% | $3.3M | |
| 5 | Gasoline Stations with Convenience Stores | 12 | 2.6% | $7.8M | |
| 6 | All Other Specialty Trade Contractors | 9 | 2.0% | $7M | |
| 7 | Insurance Agencies and Brokerages | 8 | 1.8% | $5.5M | |
| 8 | Offices of Certified Public Accountants | 8 | 1.8% | $4.9M | |
| 9 | Electronics and Appliance Retailers | 8 | 1.8% | $1.2M | |
| 10 | Couriers and Express Delivery Services | 7 | 1.5% | $7.9M |
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Franchise brands bought in Iowa
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Super 8 | 6 | 1.3% | $10.9M | |
| 2 | Subway | 5 | 1.1% | $2.3M | |
| 3 | Slumberland Furniture | 3 | 0.7% | $11M | |
| 4 | Servpro | 3 | 0.7% | $2.4M | |
| 5 | Budget Blinds | 3 | 0.7% | $2.3M | |
| 6 | Home Instead | 3 | 0.7% | $1.4M | |
| 7 | Farrell's eXtreme Bodyshaping | 3 | 0.7% | $317K | |
| 8 | AmericInn | 2 | 0.4% | $5.3M | |
| 9 | Sleep Inn | 2 | 0.4% | $4.8M | |
| 10 | Quality Inn | 2 | 0.4% | $3.6M | |
| 11 | Chrysler | 2 | 0.4% | $3.3M | |
| 12 | A&W | 2 | 0.4% | $2.9M | |
| 13 | Midas | 2 | 0.4% | $1.3M | |
| 14 | Pearle Vision | 2 | 0.4% | $964K | |
| 15 | Pizza Ranch | 2 | 0.4% | $690K |
Acquisitions by industry in Iowa
The 5 industries with the most acquisition loans in Iowa (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Full-Service Restaurants | 30 | $173,700 | n/a |
| Hotels and Motels | 21 | $1,960,000 | n/a |
| Limited-Service Restaurants | 20 | $339,000 | n/a |
| Offices of Chiropractors | 16 | $198,000 | n/a |
| Gasoline Stations with Convenience Stores | 12 | $115,500 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Iowa?
The median SBA 7(a) acquisition loan in Iowa was $332,050 across 454 loans (FY2018 to FY2026), 49% lower than the $645,250 national median. The middle half of loans ran from $158,225 to $962,750. 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 Iowa?
Lincoln Savings Bank (30), Northwest Bank (30), Live Oak Banking Company (15), Nicolet National Bank (15), Bankers Trust Company (15). Lincoln Savings Bank alone accounts for 7% of Iowa acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Iowa?
Full-Service Restaurants (30), Hotels (except Casino Hotels) and Motels (21), Limited-Service Restaurants (20), Offices of Chiropractors (16), Gasoline Stations with Convenience Stores (12). The top three industries make up 16% of the state's acquisition loans.
How often do SBA acquisition loans fail in Iowa?
In the seasoned cohort (FY2018 to FY2021), among 209 Iowa acquisition loans: 3.8% charged off, 9% higher than the 3.5% national acquisition average.
How does Iowa compare with other states?
Iowa ranks number 29 of 54 states and territories by acquisition loan count, with 0.9% of national volume (454 of 48,902 loans) and $329M approved. Browse the full state ranking.
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Related
- Full-Service Restaurants nationally
- Hotels (except Casino Hotels) and Motels nationally
- Limited-Service Restaurants nationally
- Lincoln Savings Bank
- Northwest Bank
- Live Oak Banking Company
- 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.