SBA loans in Minnesota: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,778 7(a) loans to buy an existing business in Minnesota, totaling $1.4B. The median loan was $450,000, 30% lower than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Minnesota
The lenders that made the most SBA 7(a) acquisition loans in Minnesota, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | BankVista | 279 | 15.7% | $194M | |
| 2 | Old National Bank | 191 | 10.7% | $193M | |
| 3 | Frandsen Bank and Trust | 82 | 4.6% | $55.3M | |
| 4 | The Huntington National Bank | 80 | 4.5% | $40M | |
| 5 | 21st Century Bank | 59 | 3.3% | $50.4M | |
| 6 | Village Bank | 57 | 3.2% | $49.3M | |
| 7 | Falcon National Bank | 45 | 2.5% | $30.7M | |
| 8 | Live Oak Banking Company | 41 | 2.3% | $56.6M | |
| 9 | U.S. Bank, National Association | 38 | 2.1% | $17.7M | |
| 10 | Associated Bank National Association | 32 | 1.8% | $35M |
What this tells a buyer
- Deal size band. Half of Minnesota acquisition loans fell between $185,025 and $977,125. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Minnesota accounts for 3.6% of all SBA acquisition loans and ranks number 8 of 54 states and territories by count.
- Industry concentration. Full-Service Restaurants is the most financed business type here (70 loans, 4% of the state). The top three industries together are 11%.
- Lender concentration. BankVista made 16% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 13% of acquisition loans in Minnesota involved a franchised brand; the most frequent is The UPS Store (11 loans).
Minnesota acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 121 | $60M | $261,000 | |
| FY2019 | 200 | $115M | $315,000 | |
| FY2020 | 185 | $157M | $463,500 | |
| FY2021 | 298 | $228M | $453,250 | |
| FY2022 | 212 | $194M | $518,750 | |
| FY2023 | 184 | $129M | $451,800 | |
| FY2024 | 202 | $170M | $485,750 | |
| FY2025 | 199 | $154M | $486,700 | |
| FY2026 | 177 | $163M | $551,500 |
How often do these acquisition loans fail?
Of the 803 Minnesota acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 26 have been charged off by the SBA, a rate of 3.2% by loan count and 1.4% by dollars. 413 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 Minnesota is 8% 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 Minnesota
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 70 | 3.9% | $34.1M | |
| 2 | Offices of Chiropractors | 69 | 3.9% | $16.2M | |
| 3 | Limited-Service Restaurants | 59 | 3.3% | $39.9M | |
| 4 | Couriers and Express Delivery Services | 51 | 2.9% | $38.8M | |
| 5 | Beer, Wine, and Liquor Retailers | 51 | 2.9% | $28.6M | |
| 6 | General Automotive Repair | 47 | 2.6% | $22.9M | |
| 7 | All Other Specialty Trade Contractors | 43 | 2.4% | $45.9M | |
| 8 | Gasoline Stations with Convenience Stores | 40 | 2.2% | $36.9M | |
| 9 | Landscaping Services | 38 | 2.1% | $28M | |
| 10 | Electrical Contractors and Other Wiring Installation Contractors | 35 | 2.0% | $35.8M |
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Franchise brands bought in Minnesota
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The UPS Store | 11 | 0.6% | $4.4M | |
| 2 | Subway | 6 | 0.3% | $6.2M | |
| 3 | Ace Hardware | 6 | 0.3% | $3.9M | |
| 4 | Fantastic Sams | 6 | 0.3% | $3.2M | |
| 5 | Erbert and Gerbert's | 6 | 0.3% | $952K | |
| 6 | Dairy Queen | 5 | 0.3% | $3.7M | |
| 7 | MGM Wine & Spirits | 5 | 0.3% | $3.4M | |
| 8 | Dunn Brothers Coffee | 5 | 0.3% | $1.6M | |
| 9 | Jimmy John's | 4 | 0.2% | $3.8M | |
| 10 | Anytime Fitness | 4 | 0.2% | $2M | |
| 11 | Arco (BP) | 4 | 0.2% | $1.8M | |
| 12 | Once Upon A Child | 4 | 0.2% | $1.7M | |
| 13 | Budget Blinds | 4 | 0.2% | $1.3M | |
| 14 | Culver's | 3 | 0.2% | $5.5M | |
| 15 | Visiting Angels | 3 | 0.2% | $3.8M |
Acquisitions by industry in Minnesota
The 20 industries with the most acquisition loans in Minnesota (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 Minnesota?
The median SBA 7(a) acquisition loan in Minnesota was $450,000 across 1,778 loans (FY2018 to FY2026), 30% lower than the $645,250 national median. The middle half of loans ran from $185,025 to $977,125. 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 Minnesota?
BankVista (279), Old National Bank (191), Frandsen Bank and Trust (82), The Huntington National Bank (80), 21st Century Bank (59). BankVista alone accounts for 16% of Minnesota acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Minnesota?
Full-Service Restaurants (70), Offices of Chiropractors (69), Limited-Service Restaurants (59), Couriers and Express Delivery Services (51), Beer, Wine, and Liquor Retailers (51). The top three industries make up 11% of the state's acquisition loans.
How often do SBA acquisition loans fail in Minnesota?
In the seasoned cohort (FY2018 to FY2021), among 803 Minnesota acquisition loans: 3.2% charged off, 8% lower than the 3.5% national acquisition average.
How does Minnesota compare with other states?
Minnesota ranks number 8 of 54 states and territories by acquisition loan count, with 3.6% of national volume (1,778 of 48,902 loans) and $1.4B approved. Browse the full state ranking.
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Related
- Full-Service Restaurants nationally
- Offices of Chiropractors nationally
- Limited-Service Restaurants nationally
- BankVista
- Old National Bank
- Frandsen Bank and Trust
- 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.