SBA loans in Kentucky: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 445 7(a) loans to buy an existing business in Kentucky, totaling $472M. The median loan was $500,000, 23% lower than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Kentucky
The lenders that made the most SBA 7(a) acquisition loans in Kentucky, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Stock Yards Bank & Trust Company | 54 | 12.1% | $41.8M | |
| 2 | Community Trust Bank, Inc. | 48 | 10.8% | $14.1M | |
| 3 | Republic Bank & Trust Company | 41 | 9.2% | $27.1M | |
| 4 | The Huntington National Bank | 39 | 8.8% | $26.5M | |
| 5 | Live Oak Banking Company | 33 | 7.4% | $60.7M | |
| 6 | GBank | 14 | 3.1% | $36.4M | |
| 7 | Old National Bank | 12 | 2.7% | $10.6M | |
| 8 | German American Bank | 11 | 2.5% | $13.2M | |
| 9 | Heritage Bank Inc | 9 | 2.0% | $20.1M | |
| 10 | United Midwest Savings Bank National Association | 8 | 1.8% | $19.1M |
What this tells a buyer
- Deal size band. Half of Kentucky acquisition loans fell between $250,000 and $1,365,100. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Kentucky accounts for 0.9% of all SBA acquisition loans and ranks number 30 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (37 loans, 8% of the state). The top three industries together are 19%.
- Lender concentration. Stock Yards Bank & Trust Company made 12% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 26% of acquisition loans in Kentucky involved a franchised brand; the most frequent is Subway (8 loans).
Kentucky acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 28 | $30M | $372,500 | |
| FY2019 | 44 | $42.5M | $516,350 | |
| FY2020 | 25 | $24.1M | $590,000 | |
| FY2021 | 56 | $53.7M | $480,000 | |
| FY2022 | 46 | $43.7M | $632,000 | |
| FY2023 | 58 | $53.5M | $410,000 | |
| FY2024 | 60 | $61.3M | $485,000 | |
| FY2025 | 71 | $91.9M | $567,000 | |
| FY2026 | 57 | $71.3M | $718,500 |
How often do these acquisition loans fail?
Of the 153 Kentucky acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 2.0% by loan count and 0.4% by dollars. 78 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 Kentucky is 44% lower 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 Kentucky
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 37 | 8.3% | $100M | |
| 2 | Limited-Service Restaurants | 26 | 5.8% | $20.7M | |
| 3 | Full-Service Restaurants | 23 | 5.2% | $12.7M | |
| 4 | All Other Specialty Trade Contractors | 15 | 3.4% | $13.8M | |
| 5 | Fitness and Recreational Sports Centers | 12 | 2.7% | $3.6M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 11 | 2.5% | $5.7M | |
| 7 | Pharmacies and Drug Retailers | 9 | 2.0% | $16.4M | |
| 8 | General Automotive Repair | 9 | 2.0% | $6.8M | |
| 9 | Child Care Services | 9 | 2.0% | $4M | |
| 10 | Landscaping Services | 8 | 1.8% | $7.8M |
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Franchise brands bought in Kentucky
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 8 | 1.8% | $4.6M | |
| 2 | Econo Lodge | 6 | 1.3% | $9.2M | |
| 3 | Quality Inn | 5 | 1.1% | $16.4M | |
| 4 | Do it Best | 5 | 1.1% | $5.4M | |
| 5 | Days Inn | 4 | 0.9% | $7.4M | |
| 6 | Senior Helpers | 4 | 0.9% | $705K | |
| 7 | Home Instead | 3 | 0.7% | $7.5M | |
| 8 | The UPS Store | 3 | 0.7% | $803K | |
| 9 | Country Inn and Suites by Radisson | 2 | 0.4% | $9.7M | |
| 10 | Best Western | 2 | 0.4% | $9.2M | |
| 11 | Red Roof Inn | 2 | 0.4% | $6.6M | |
| 12 | Baymont | 2 | 0.4% | $5.8M | |
| 13 | Motel 6 | 2 | 0.4% | $4.4M | |
| 14 | Two Men and a Truck | 2 | 0.4% | $3.6M | |
| 15 | Re-Bath | 2 | 0.4% | $2.9M |
Acquisitions by industry in Kentucky
The 6 industries with the most acquisition loans in Kentucky (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Hotels and Motels | 37 | $2,500,000 | n/a |
| Limited-Service Restaurants | 26 | $325,800 | n/a |
| Full-Service Restaurants | 23 | $335,000 | n/a |
| All Other Specialty Trade Contractors | 15 | $392,300 | n/a |
| Fitness and Recreational Sports Centers | 12 | $189,750 | n/a |
| Plumbing, Heating, and Air-Conditioning Contractors | 11 | $350,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Kentucky?
The median SBA 7(a) acquisition loan in Kentucky was $500,000 across 445 loans (FY2018 to FY2026), 23% lower than the $645,250 national median. The middle half of loans ran from $250,000 to $1,365,100. 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 Kentucky?
Stock Yards Bank & Trust Company (54), Community Trust Bank, Inc. (48), Republic Bank & Trust Company (41), The Huntington National Bank (39), Live Oak Banking Company (33). Stock Yards Bank & Trust Company alone accounts for 12% of Kentucky acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Kentucky?
Hotels (except Casino Hotels) and Motels (37), Limited-Service Restaurants (26), Full-Service Restaurants (23), All Other Specialty Trade Contractors (15), Fitness and Recreational Sports Centers (12). The top three industries make up 19% of the state's acquisition loans.
How often do SBA acquisition loans fail in Kentucky?
In the seasoned cohort (FY2018 to FY2021), among 153 Kentucky acquisition loans: 2.0% charged off, 44% lower than the 3.5% national acquisition average.
How does Kentucky compare with other states?
Kentucky ranks number 30 of 54 states and territories by acquisition loan count, with 0.9% of national volume (445 of 48,902 loans) and $472M approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Limited-Service Restaurants nationally
- Full-Service Restaurants nationally
- Stock Yards Bank & Trust Company
- Community Trust Bank, Inc.
- Republic Bank & Trust 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.