SBA loans in North Carolina: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 1,575 7(a) loans to buy an existing business in North Carolina, totaling $2.1B. The median loan was $800,000, 24% higher than the $645,250 national median for SBA-financed acquisitions.
SBA acquisition counsel, nationwide. Free consultation.
SBA lenders in North Carolina
The lenders that made the most SBA 7(a) acquisition loans in North Carolina, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 346 | 22.0% | $451M | |
| 2 | GBank | 99 | 6.3% | $311M | |
| 3 | Pinnacle Bank | 73 | 4.6% | $92.4M | |
| 4 | The Huntington National Bank | 55 | 3.5% | $64.3M | |
| 5 | First Bank | 53 | 3.4% | $48.9M | |
| 6 | The Fidelity Bank | 52 | 3.3% | $50.1M | |
| 7 | TowneBank | 48 | 3.0% | $61.7M | |
| 8 | First National Bank of Pennsylvania | 46 | 2.9% | $40.5M | |
| 9 | HomeTrust Bank | 44 | 2.8% | $61.2M | |
| 10 | United Community Bank | 41 | 2.6% | $33.4M |
What this tells a buyer
- Deal size band. Half of North Carolina acquisition loans fell between $350,000 and $1,800,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. North Carolina accounts for 3.2% of all SBA acquisition loans and ranks number 12 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (147 loans, 9% of the state). The top three industries together are 16%.
- Lender concentration. Live Oak Banking Company made 22% of the state's acquisition loans. A single lender carries a large part of the market, so it is worth knowing what it prefers to finance.
- Franchise resales. 24% of acquisition loans in North Carolina involved a franchised brand; the most frequent is Quality Inn (20 loans).
North Carolina acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 119 | $125M | $524,300 | |
| FY2019 | 157 | $188M | $740,000 | |
| FY2020 | 172 | $219M | $827,000 | |
| FY2021 | 184 | $225M | $786,250 | |
| FY2022 | 155 | $206M | $900,000 | |
| FY2023 | 155 | $200M | $799,200 | |
| FY2024 | 191 | $287M | $946,000 | |
| FY2025 | 225 | $305M | $780,700 | |
| FY2026 | 217 | $310M | $840,500 |
How often do these acquisition loans fail?
Of the 632 North Carolina acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 13 have been charged off by the SBA, a rate of 2.1% by loan count and 0.7% by dollars. 356 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 North Carolina is 41% 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.
M&A counsel for SBA and franchise acquisitions. Free consultation.
Top industries in North Carolina
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 147 | 9.3% | $444M | |
| 2 | Full-Service Restaurants | 56 | 3.6% | $58.1M | |
| 3 | Limited-Service Restaurants | 56 | 3.6% | $48.3M | |
| 4 | All Other Specialty Trade Contractors | 41 | 2.6% | $34.4M | |
| 5 | Offices of Certified Public Accountants | 40 | 2.5% | $22.7M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 33 | 2.1% | $35.2M | |
| 7 | Child Care Services | 32 | 2.0% | $73.2M | |
| 8 | General Automotive Repair | 31 | 2.0% | $25.9M | |
| 9 | Lessors of Miniwarehouses and Self-Storage Units | 28 | 1.8% | $37.7M | |
| 10 | Broilers and Other Meat Type Chicken Production | 28 | 1.8% | $33.6M |
Purchase agreement, escrow and consents. Free consultation.
Franchise brands bought in North Carolina
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Quality Inn | 20 | 1.3% | $68.5M | |
| 2 | The UPS Store | 18 | 1.1% | $11.4M | |
| 3 | Servpro | 13 | 0.8% | $15.1M | |
| 4 | Super 8 | 12 | 0.8% | $29.8M | |
| 5 | Comfort Inn | 9 | 0.6% | $39.2M | |
| 6 | Red Roof Inn | 9 | 0.6% | $24.1M | |
| 7 | Primrose Schools | 8 | 0.5% | $28.7M | |
| 8 | Rodeway Inn | 8 | 0.5% | $18.7M | |
| 9 | Days Inn | 7 | 0.4% | $15.7M | |
| 10 | Home Instead | 7 | 0.4% | $10.9M | |
| 11 | Best Western | 6 | 0.4% | $23M | |
| 12 | The Goddard School | 6 | 0.4% | $14.8M | |
| 13 | Sleep Inn | 5 | 0.3% | $20.6M | |
| 14 | Domino's Pizza | 5 | 0.3% | $11M | |
| 15 | Econo Lodge | 5 | 0.3% | $10.1M |
Acquisitions by industry in North Carolina
The 20 industries with the most acquisition loans in North Carolina (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 North Carolina?
The median SBA 7(a) acquisition loan in North Carolina was $800,000 across 1,575 loans (FY2018 to FY2026), 24% higher than the $645,250 national median. The middle half of loans ran from $350,000 to $1,800,000. 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 North Carolina?
Live Oak Banking Company (346), GBank (99), Pinnacle Bank (73), The Huntington National Bank (55), First Bank (53). Live Oak Banking Company alone accounts for 22% of North Carolina acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in North Carolina?
Hotels (except Casino Hotels) and Motels (147), Full-Service Restaurants (56), Limited-Service Restaurants (56), All Other Specialty Trade Contractors (41), Offices of Certified Public Accountants (40). The top three industries make up 16% of the state's acquisition loans.
How often do SBA acquisition loans fail in North Carolina?
In the seasoned cohort (FY2018 to FY2021), among 632 North Carolina acquisition loans: 2.1% charged off, 41% lower than the 3.5% national acquisition average.
How does North Carolina compare with other states?
North Carolina ranks number 12 of 54 states and territories by acquisition loan count, with 3.2% of national volume (1,575 of 48,902 loans) and $2.1B approved. Browse the full state ranking.
SBA 7(a) acquisitions, nationwide. Free consultation.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- Hotels (except Casino Hotels) and Motels nationally
- Full-Service Restaurants nationally
- Limited-Service Restaurants nationally
- Live Oak Banking Company
- GBank
- Pinnacle Bank
- 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.