Know your risk: Updated SBA Loan Default Data on Acquisition Loans

March 10, 2024

by a lender in Yorba Linda, CA, USA

At Viso Business Capital, we've been following the loan default stats for SBA business acquisition loans (excluding all other loan uses), and recently updated that data.

This time we also reported on the growth in the number of transactions over $1 million for the last few years (very interesting!) and also early pay-offs.

Please check it out here: https://visocap.net/2024/02/21/how-are-acquisition-entrepreneurs-doing-now/

And if you'd like to learn more about how we work at Viso, please sign up for next week's Zoom session here:
https://zoom.us/meeting/register/tJEpdu2oqDwrGtbo5r13lvs94coerkisWelQ

Reply by a searcher
from Southern Methodist University in St. Louis, MO, USA

Very helpful thanks for sharing Heather. Natural to see an uptick in defaults on variable rate loans given we saw the sharpest increase in rates in many decades.. Should expect to see default rates uptick in more traditional private credit portfolios as well. Would think it is possible that more recent vintages could go back down given deals are now getting done being modeled at today's higher rates.

Reply by a searcher
in Miami, FL, USA

Thanks for sharing. I enjoyed learning that despite a slight increase in default rates in 2023, the overall likelihood of default remains relatively low at 2.25%. I didn't realize that larger acquisition loans were seeing such significant growth; maybe this highlights both the larger volume of searchers and the lack of institutional activity in sub-$10M deals.

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