SBA loans in North Dakota: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 130 7(a) loans to buy an existing business in North Dakota, totaling $129M. The median loan was $436,600, 32% lower than the $645,250 national median for SBA-financed acquisitions. Volume rose 23% from FY2024 to FY2026.
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SBA lenders in North Dakota
The lenders that made the most SBA 7(a) acquisition loans in North Dakota, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Aspire Bank | 13 | 10.0% | $6.4M | |
| 2 | Old National Bank | 12 | 9.2% | $4.8M | |
| 3 | Alerus Financial, National Association | 11 | 8.5% | $23.5M | |
| 4 | Town and Country CU | 6 | 4.6% | $1.4M | |
| 5 | Bell Bank | 5 | 3.8% | $4.5M | |
| 6 | Wallis Bank | 5 | 3.8% | $4.2M | |
| 7 | Stearns Bank National Association | 4 | 3.1% | $6M | |
| 8 | First Community CU | 4 | 3.1% | $5.4M | |
| 9 | First Western SBLC, LLC d/b/a Peachtree Group | 4 | 3.1% | $4.4M | |
| 10 | BankVista | 4 | 3.1% | $1M |
What this tells a buyer
- Deal size band. Half of North Dakota acquisition loans fell between $147,750 and $1,252,075. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. North Dakota accounts for 0.3% of all SBA acquisition loans and ranks number 45 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (13 loans, 10% of the state). The top three industries together are 20%.
- Lender concentration. Aspire Bank made 10% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 22% of acquisition loans in North Dakota involved a franchised brand; the most frequent is Country Inn and Suites by Radisson (3 loans).
North Dakota acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $4.1M | $125,000 | |
| FY2019 | 19 | $14.8M | $279,500 | |
| FY2020 | 12 | $10.3M | $358,150 | |
| FY2021 | 14 | $7.6M | $318,750 | |
| FY2022 | 12 | $13.2M | $695,100 | |
| FY2023 | 11 | $13.2M | $895,000 | |
| FY2024 | 13 | $11.6M | $766,300 | |
| FY2025 | 22 | $29.9M | $883,500 | |
| FY2026 | 16 | $24.1M | $626,750 |
How often do these acquisition loans fail?
Of the 56 North Dakota acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 35 have already been paid in full.
For comparison, North Dakota has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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 North Dakota
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 13 | 10.0% | $30M | |
| 2 | Gasoline Stations with Convenience Stores | 7 | 5.4% | $4.4M | |
| 3 | Couriers and Express Delivery Services | 6 | 4.6% | $4.7M | |
| 4 | Full-Service Restaurants | 5 | 3.8% | $1.3M | |
| 5 | Drinking Places (Alcoholic Beverages) | 5 | 3.8% | $728K | |
| 6 | Freight Transportation Arrangement | 5 | 3.8% | $600K | |
| 7 | All Other Specialty Trade Contractors | 4 | 3.1% | $5.2M | |
| 8 | Offices of Chiropractors | 4 | 3.1% | $646K | |
| 9 | Funeral Homes and Funeral Services | 3 | 2.3% | $9.2M | |
| 10 | Limited-Service Restaurants | 3 | 2.3% | $5.8M |
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Franchise brands bought in North Dakota
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Country Inn and Suites by Radisson | 3 | 2.3% | $5.2M | |
| 2 | Culver's | 2 | 1.5% | $5M | |
| 3 | AmericInn | 2 | 1.5% | $4.9M | |
| 4 | The Medicine Shoppe | 2 | 1.5% | $4.8M | |
| 5 | Waxing the City | 2 | 1.5% | $1.4M | |
| 6 | Padgett Business Services | 2 | 1.5% | $875K | |
| 7 | The UPS Store | 2 | 1.5% | $776K | |
| 8 | Home Helpers Home Care | 1 | 0.8% | $3.4M | |
| 9 | Microtel Inn & Suites | 1 | 0.8% | $2.5M | |
| 10 | Comfort Inn | 1 | 0.8% | $2.2M | |
| 11 | Hardware Hank | 1 | 0.8% | $1.9M | |
| 12 | Orange Theory Fitness | 1 | 0.8% | $1.4M | |
| 13 | Red Roof Inn | 1 | 0.8% | $1.3M | |
| 14 | Little Caesars | 1 | 0.8% | $774K | |
| 15 | Erbert and Gerbert's | 1 | 0.8% | $755K |
Acquisitions by industry in North Dakota
The 1 industry with the most acquisition loans in North Dakota (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 | 13 | $2,240,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in North Dakota?
The median SBA 7(a) acquisition loan in North Dakota was $436,600 across 130 loans (FY2018 to FY2026), 32% lower than the $645,250 national median. The middle half of loans ran from $147,750 to $1,252,075. 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 Dakota?
Aspire Bank (13), Old National Bank (12), Alerus Financial, National Association (11), Town and Country CU (6), Bell Bank (5). Aspire Bank alone accounts for 10% of North Dakota acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in North Dakota?
Hotels (except Casino Hotels) and Motels (13), Gasoline Stations with Convenience Stores (7), Couriers and Express Delivery Services (6), Full-Service Restaurants (5), Drinking Places (Alcoholic Beverages) (5). The top three industries make up 20% of the state's acquisition loans.
How often do SBA acquisition loans fail in North Dakota?
In the seasoned cohort (FY2018 to FY2021), among 56 North Dakota acquisition loans: none charged off, against the 3.5% national acquisition average.
How does North Dakota compare with other states?
North Dakota ranks number 45 of 54 states and territories by acquisition loan count, with 0.3% of national volume (130 of 48,902 loans) and $129M approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Gasoline Stations with Convenience Stores nationally
- Couriers and Express Delivery Services nationally
- Old National Bank
- Alerus Financial, National Association
- Bell 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.