SBA loans in Rhode Island: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 144 7(a) loans to buy an existing business in Rhode Island, totaling $125M. The median loan was $433,750, 33% lower than the $645,250 national median for SBA-financed acquisitions.
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SBA lenders in Rhode Island
The lenders that made the most SBA 7(a) acquisition loans in Rhode Island, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beacon Bank and Trust | 16 | 11.1% | $20.6M | |
| 2 | Live Oak Banking Company | 12 | 8.3% | $19.9M | |
| 3 | Eastern Bank | 12 | 8.3% | $7.8M | |
| 4 | Bristol County Savings Bank | 11 | 7.6% | $5.8M | |
| 5 | Navigant CU | 8 | 5.6% | $3.2M | |
| 6 | Rockland Trust Company | 7 | 4.9% | $4.1M | |
| 7 | Santander Bank, National Association | 6 | 4.2% | $6.6M | |
| 8 | Citizens Bank, National Association | 6 | 4.2% | $3.1M | |
| 9 | BankNewport | 5 | 3.5% | $744K | |
| 10 | The Huntington National Bank | 4 | 2.8% | $2.8M |
What this tells a buyer
- Deal size band. Half of Rhode Island acquisition loans fell between $170,250 and $1,008,750. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. Rhode Island accounts for 0.3% of all SBA acquisition loans and ranks number 43 of 54 states and territories by count.
- Industry concentration. Beer, Wine, and Liquor Retailers is the most financed business type here (11 loans, 8% of the state). The top three industries together are 19%.
- Lender concentration. Beacon Bank and Trust made 11% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 15% of acquisition loans in Rhode Island involved a franchised brand; the most frequent is Fitness Together (3 loans).
Rhode Island acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 12 | $2.3M | $107,000 | |
| FY2019 | 16 | $14.3M | $344,500 | |
| FY2020 | 17 | $10.7M | $250,000 | |
| FY2021 | 20 | $15.4M | $493,500 | |
| FY2022 | 11 | $7.6M | $624,000 | |
| FY2023 | 15 | $17.7M | $755,000 | |
| FY2024 | 7 | $13.2M | $938,000 | |
| FY2025 | 27 | $24.3M | $500,000 | |
| FY2026 | 19 | $19.1M | $522,700 |
How often do these acquisition loans fail?
Of the 65 Rhode Island acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 3.1% by loan count and 0.2% by dollars. 32 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 Rhode Island is 13% 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 Rhode Island
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beer, Wine, and Liquor Retailers | 11 | 7.6% | $12.2M | |
| 2 | Full-Service Restaurants | 9 | 6.3% | $5.5M | |
| 3 | Child Care Services | 7 | 4.9% | $4.3M | |
| 4 | Fitness and Recreational Sports Centers | 5 | 3.5% | $879K | |
| 5 | Other Miscellaneous Durable Goods Merchant Wholesalers | 4 | 2.8% | $8.1M | |
| 6 | Limited-Service Restaurants | 4 | 2.8% | $584K | |
| 7 | Hotels (except Casino Hotels) and Motels | 3 | 2.1% | $11.7M | |
| 8 | Home Health Care Services | 3 | 2.1% | $5M | |
| 9 | Insurance Agencies and Brokerages | 3 | 2.1% | $4.8M | |
| 10 | Convenience Retailers | 3 | 2.1% | $2.6M |
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Franchise brands bought in Rhode Island
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness Together | 3 | 2.1% | $300K | |
| 2 | System4 | 2 | 1.4% | $3M | |
| 3 | Hampton Inn | 1 | 0.7% | $4.6M | |
| 4 | Red Roof Inn | 1 | 0.7% | $4.5M | |
| 5 | Visiting Angels | 1 | 0.7% | $1.9M | |
| 6 | Wild Birds Unlimited | 1 | 0.7% | $523K | |
| 7 | Honey Dew Donuts | 1 | 0.7% | $315K | |
| 8 | Budget Blinds | 1 | 0.7% | $229K | |
| 9 | Sir Speedy | 1 | 0.7% | $150K | |
| 10 | Subway | 1 | 0.7% | $114K | |
| 11 | Signarama | 1 | 0.7% | $44K |
Acquisitions by industry in Rhode Island
The 1 industry with the most acquisition loans in Rhode Island (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Beer, Wine, and Liquor Retailers | 11 | $765,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in Rhode Island?
The median SBA 7(a) acquisition loan in Rhode Island was $433,750 across 144 loans (FY2018 to FY2026), 33% lower than the $645,250 national median. The middle half of loans ran from $170,250 to $1,008,750. 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 Rhode Island?
Beacon Bank and Trust (16), Live Oak Banking Company (12), Eastern Bank (12), Bristol County Savings Bank (11), Navigant CU (8). Beacon Bank and Trust alone accounts for 11% of Rhode Island acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in Rhode Island?
Beer, Wine, and Liquor Retailers (11), Full-Service Restaurants (9), Child Care Services (7), Fitness and Recreational Sports Centers (5), Other Miscellaneous Durable Goods Merchant Wholesalers (4). The top three industries make up 19% of the state's acquisition loans.
How often do SBA acquisition loans fail in Rhode Island?
In the seasoned cohort (FY2018 to FY2021), among 65 Rhode Island acquisition loans: 3.1% charged off, 13% lower than the 3.5% national acquisition average.
How does Rhode Island compare with other states?
Rhode Island ranks number 43 of 54 states and territories by acquisition loan count, with 0.3% of national volume (144 of 48,902 loans) and $125M approved. Browse the full state ranking.
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Related
- Beer, Wine, and Liquor Retailers nationally
- Full-Service Restaurants nationally
- Child Care Services nationally
- Beacon Bank and Trust
- Live Oak Banking Company
- Eastern 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.