Five Star Bank (NY): SBA Lending Record

Five Star Bank (NY) in the SBA file

Five Star Bank (NY) is credited with 739 loans and $74.6 million approved in gross dollars across FY2017 to FY2026. The whole record is SBA 7(a), and SBA 504 has none. SBA lists NY for Five Star Bank (NY). What is printed describes loans SBA shows Five Star Bank (NY) holding, or having held last; SBA backs those 739 loans with its guarantee, and the file does not say how the holder chooses borrowers.

What the named classes show

The class table accounts for few of the loans, since 571 of the 739 sit outside the named classes. Of the rest, beverage manufacturing (breweries, wineries, distilleries) leads with 27 loans, automotive repair has 25, the full-service restaurant 24, the limited-service restaurant 20 and the liquor store 11. No state table is printed for this lender, so the geography of the book cannot be read here.

Approvals that fell away, loans written off

Approvals from FY2017 to FY2024: 13.3% cancelled at the least. 17.3% once undisbursed loans count as cancelled. No charge-off rate of the FY2017 to FY2021 cohort is printed for Five Star Bank (NY) by our own threshold, since the cohort holds fewer than 30 loans; the gap says nothing about zero.

Questions that a study has to answer

The leading named class, beverage manufacturing, calls for a brewery, winery or distillery study that tests production capacity, distribution reach and taproom sales, equipment cost and licensing, and the value a specialised building could realise. An automotive repair project tests bay count, technician capacity and parts margin. A restaurant project looks at covers filled at a realistic check and the rent the site can carry. With 571 unclassified loans, an unlisted property type has no precedent here, and without a state table a borrower cannot tell how near the file sits to the project's market. In each case show the margin of cash flow over debt payments, base case and downside, allow for the delay that cancelled approvals imply, and rest the loan on a defensible appraised value.

Reading a record with blanks

The record covers 739 loans and $74.6 million, a small dollar total for that many loans, and 571 of the loans have no class. With no state table and no charge-off rate, a reader has only the class counts and the cancellation range of 13.3% to 17.3%. That range should be read as a minimum and a maximum for approvals that did not reach funding, not as a rate of loss. Any decision should rest on the borrower's own evidence.