SBA loans in Louisiana: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 430 7(a) loans to buy an existing business in Louisiana, totaling $505M. The median loan was $782,250, 21% higher than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Louisiana
The lenders that made the most SBA 7(a) acquisition loans in Louisiana, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hancock Whitney Bank | 34 | 7.9% | $22.1M | |
| 2 | American Bank | 31 | 7.2% | $28.2M | |
| 3 | Live Oak Banking Company | 28 | 6.5% | $49.8M | |
| 4 | Gulf Coast Bank | 26 | 6.0% | $21.3M | |
| 5 | First Financial Bank | 22 | 5.1% | $30.4M | |
| 6 | The Huntington National Bank | 21 | 4.9% | $22.9M | |
| 7 | First Horizon Bank | 12 | 2.8% | $14.2M | |
| 8 | Fidelity Bank | 12 | 2.8% | $5.9M | |
| 9 | BankFirst Financial Services | 12 | 2.8% | $3.3M | |
| 10 | Byline Bank | 11 | 2.6% | $12.3M |
What this tells a buyer
- Deal size band. Half of Louisiana acquisition loans fell between $297,750 and $1,593,750. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Louisiana accounts for 0.9% of all SBA acquisition loans and ranks number 32 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (35 loans, 8% of the state). The top three industries together are 18%.
- Lender concentration. Hancock Whitney Bank made 8% 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 Louisiana involved a franchised brand; the most frequent is FASTSIGNS (4 loans).
Louisiana acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 36 | $49.5M | $1,192,000 | |
| FY2019 | 43 | $36.7M | $350,000 | |
| FY2020 | 36 | $42.5M | $625,000 | |
| FY2021 | 56 | $68.9M | $961,250 | |
| FY2022 | 41 | $48.1M | $674,000 | |
| FY2023 | 48 | $44.2M | $555,250 | |
| FY2024 | 49 | $58.1M | $902,700 | |
| FY2025 | 68 | $89.2M | $914,000 | |
| FY2026 | 53 | $67.5M | $955,000 |
How often do these acquisition loans fail?
Of the 171 Louisiana acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 11 have been charged off by the SBA, a rate of 6.4% by loan count and 2.9% by dollars. 80 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 Louisiana is 83% 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 Louisiana
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 35 | 8.1% | $87.3M | |
| 2 | Pharmacies and Drug Retailers | 24 | 5.6% | $28.8M | |
| 3 | Full-Service Restaurants | 19 | 4.4% | $13.2M | |
| 4 | Limited-Service Restaurants | 18 | 4.2% | $14M | |
| 5 | Insurance Agencies and Brokerages | 16 | 3.7% | $10.1M | |
| 6 | Broilers and Other Meat Type Chicken Production | 10 | 2.3% | $14.1M | |
| 7 | Plumbing, Heating, and Air-Conditioning Contractors | 9 | 2.1% | $10M | |
| 8 | Fitness and Recreational Sports Centers | 9 | 2.1% | $3.4M | |
| 9 | Lessors of Miniwarehouses and Self-Storage Units | 8 | 1.9% | $17.2M | |
| 10 | Veterinary Services | 7 | 1.6% | $9.3M |
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Franchise brands bought in Louisiana
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | FASTSIGNS | 4 | 0.9% | $1.4M | |
| 2 | Days Inn | 3 | 0.7% | $7M | |
| 3 | Home Instead | 3 | 0.7% | $1.2M | |
| 4 | Sleep Inn | 2 | 0.5% | $7.2M | |
| 5 | Ace Hardware | 2 | 0.5% | $7.2M | |
| 6 | Best Western | 2 | 0.5% | $6.9M | |
| 7 | Hampton Inn | 2 | 0.5% | $3.5M | |
| 8 | Studio 6 | 2 | 0.5% | $3.4M | |
| 9 | Dairy Queen | 2 | 0.5% | $2.6M | |
| 10 | The Medicine Shoppe | 2 | 0.5% | $2.1M | |
| 11 | Firehouse Subs | 2 | 0.5% | $1.7M | |
| 12 | Crumbl | 2 | 0.5% | $1.6M | |
| 13 | Once Upon A Child | 2 | 0.5% | $1.5M | |
| 14 | Jimmy John's | 2 | 0.5% | $1.3M | |
| 15 | Tire Pros | 2 | 0.5% | $1.2M |
Acquisitions by industry in Louisiana
The 6 industries with the most acquisition loans in Louisiana (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 | 35 | $2,432,600 | 4.5% |
| Pharmacies and Drug Retailers | 24 | $1,030,000 | n/a |
| Full-Service Restaurants | 19 | $346,200 | n/a |
| Limited-Service Restaurants | 18 | $440,250 | n/a |
| Insurance Agencies and Brokerages | 16 | $354,500 | n/a |
| Broilers and Other Meat Type Chicken Production | 10 | $1,069,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Louisiana?
The median SBA 7(a) acquisition loan in Louisiana was $782,250 across 430 loans (FY2018 to FY2026), 21% higher than the $645,250 national median. The middle half of loans ran from $297,750 to $1,593,750. 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 Louisiana?
Hancock Whitney Bank (34), American Bank (31), Live Oak Banking Company (28), Gulf Coast Bank (26), First Financial Bank (22). Hancock Whitney Bank alone accounts for 8% of Louisiana acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Louisiana?
Hotels (except Casino Hotels) and Motels (35), Pharmacies and Drug Retailers (24), Full-Service Restaurants (19), Limited-Service Restaurants (18), Insurance Agencies and Brokerages (16). The top three industries make up 18% of the state's acquisition loans.
How often do SBA acquisition loans fail in Louisiana?
In the seasoned cohort (FY2018 to FY2021), among 171 Louisiana acquisition loans: 6.4% charged off, 83% higher than the 3.5% national acquisition average.
How does Louisiana compare with other states?
Louisiana ranks number 32 of 54 states and territories by acquisition loan count, with 0.9% of national volume (430 of 48,902 loans) and $505M approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Pharmacies and Drug Retailers nationally
- Full-Service Restaurants nationally
- Hancock Whitney Bank
- American 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.