SBA loans in Illinois: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,779 7(a) loans to buy an existing business in Illinois, totaling $2.0B. The median loan was $650,000, in line with the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Illinois
The lenders that made the most SBA 7(a) acquisition loans in Illinois, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 202 | 11.4% | $132M | |
| 2 | Byline Bank | 194 | 10.9% | $261M | |
| 3 | Live Oak Banking Company | 153 | 8.6% | $221M | |
| 4 | CenTrust Bank, A Division of SmartBiz Bank National Association | 45 | 2.5% | $58.7M | |
| 5 | First Mid Bank & Trust, National Association | 42 | 2.4% | $18.5M | |
| 6 | GBank | 41 | 2.3% | $116M | |
| 7 | Village Bank and Trust, National Association | 41 | 2.3% | $27.5M | |
| 8 | Merchants Bank of Indiana | 38 | 2.1% | $63.2M | |
| 9 | Old National Bank | 37 | 2.1% | $58.6M | |
| 10 | Busey Bank | 35 | 2.0% | $46.3M |
What this tells a buyer
- Deal size band. Half of Illinois acquisition loans fell between $300,000 and $1,551,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Illinois accounts for 3.6% of all SBA acquisition loans and ranks number 7 of 54 states and territories by count.
- Industry concentration. Full-Service Restaurants is the most financed business type here (119 loans, 7% of the state). The top three industries together are 18%.
- Lender concentration. The Huntington National Bank made 11% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 21% of acquisition loans in Illinois involved a franchised brand; the most frequent is The UPS Store (24 loans).
Illinois acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 169 | $153M | $518,000 | |
| FY2019 | 190 | $154M | $465,700 | |
| FY2020 | 171 | $191M | $694,000 | |
| FY2021 | 189 | $199M | $695,000 | |
| FY2022 | 181 | $257M | $833,000 | |
| FY2023 | 146 | $169M | $650,800 | |
| FY2024 | 238 | $264M | $587,500 | |
| FY2025 | 281 | $333M | $725,000 | |
| FY2026 | 214 | $281M | $795,000 |
How often do these acquisition loans fail?
Of the 719 Illinois acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 32 have been charged off by the SBA, a rate of 4.5% by loan count and 2.8% by dollars. 396 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 Illinois is 26% 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 Illinois
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 119 | 6.7% | $69.8M | |
| 2 | Hotels (except Casino Hotels) and Motels | 103 | 5.8% | $276M | |
| 3 | Limited-Service Restaurants | 90 | 5.1% | $74.4M | |
| 4 | Gasoline Stations with Convenience Stores | 73 | 4.1% | $107M | |
| 5 | Beer, Wine, and Liquor Retailers | 60 | 3.4% | $63.3M | |
| 6 | General Automotive Repair | 42 | 2.4% | $40.6M | |
| 7 | Plumbing, Heating, and Air-Conditioning Contractors | 38 | 2.1% | $36.3M | |
| 8 | Offices of Certified Public Accountants | 33 | 1.9% | $27.3M | |
| 9 | Offices of Chiropractors | 30 | 1.7% | $12M | |
| 10 | All Other Specialty Trade Contractors | 29 | 1.6% | $29.7M |
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Franchise brands bought in Illinois
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 24 | 1.3% | $11.2M | |
| 2 | Super 8 | 13 | 0.7% | $28.4M | |
| 3 | Quality Inn | 10 | 0.6% | $24.9M | |
| 4 | World Fuel Services | 10 | 0.6% | $13.6M | |
| 5 | Dairy Queen | 10 | 0.6% | $6M | |
| 6 | Subway | 10 | 0.6% | $2.9M | |
| 7 | Papa John's | 8 | 0.4% | $10.4M | |
| 8 | Country Inn and Suites by Radisson | 7 | 0.4% | $30.2M | |
| 9 | Days Inn | 7 | 0.4% | $18.1M | |
| 10 | Parent Petroleum | 7 | 0.4% | $15.3M | |
| 11 | Motel 6 | 7 | 0.4% | $15.2M | |
| 12 | Signarama | 7 | 0.4% | $2.7M | |
| 13 | Red Roof Inn | 6 | 0.3% | $19M | |
| 14 | BrightStar Care | 6 | 0.3% | $9.3M | |
| 15 | Rosati's Pizza | 6 | 0.3% | $2M |
Acquisitions by industry in Illinois
The 20 industries with the most acquisition loans in Illinois (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 Illinois?
The median SBA 7(a) acquisition loan in Illinois was $650,000 across 1,779 loans (FY2018 to FY2026), in line with the $645,250 national median. The middle half of loans ran from $300,000 to $1,551,000. 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 Illinois?
The Huntington National Bank (202), Byline Bank (194), Live Oak Banking Company (153), CenTrust Bank, A Division of SmartBiz Bank National Association (45), First Mid Bank & Trust, National Association (42). The Huntington National Bank alone accounts for 11% of Illinois acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Illinois?
Full-Service Restaurants (119), Hotels (except Casino Hotels) and Motels (103), Limited-Service Restaurants (90), Gasoline Stations with Convenience Stores (73), Beer, Wine, and Liquor Retailers (60). The top three industries make up 18% of the state's acquisition loans.
How often do SBA acquisition loans fail in Illinois?
In the seasoned cohort (FY2018 to FY2021), among 719 Illinois acquisition loans: 4.5% charged off, 26% higher than the 3.5% national acquisition average.
How does Illinois compare with other states?
Illinois ranks number 7 of 54 states and territories by acquisition loan count, with 3.6% of national volume (1,779 of 48,902 loans) and $2.0B 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
- The Huntington National Bank
- Byline 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.