Live Oak Banking Company: SBA Lending Record

Scale and program

Live Oak Banking Company shows 13,946 loans and $18.82 billion in gross approvals over FY2017 to FY2026. All of this book is 7(a); SBA 504 has no part in it. The file names NC as Live Oak Banking Company's state. The figures come from SBA's public FOIA records of loans the company holds or last held. The guarantee is SBA's, and any 7(a) loan is listed under the lender it is assigned to now or held last. Nothing on this page describes the lender's credit policy or says what it requires from an applicant.

Dental, veterinary and storage

Here too most loans, 8,934, are not in a named class. Among those that are, dental offices lead with 1,157 loans, veterinary clinics follow with 684, self storage has 620, limited-service restaurants 483 and automotive repair 362. By state the file runs from California at 1,778 loans to Texas at 1,460, Florida at 1,132, North Carolina at 886, Colorado at 623 and Georgia at 515.

What happened after approval

Lowest reading: 6.6%. Highest reading: 7.5%, which counts undisbursed loans as cancelled. Both are for FY2017 through FY2024 approvals. Of the 5,079 loans disbursed in FY2017 to FY2021, 1.9% have gone to charge-off at minimum, 0.87% within five years of approval. Both rates cover 5,079 loans that may yet fail.

Using the record in a study

Someone planning a dental practice should note that 1,157 dental loans sit in this file, and the study for such a project would test operatory count, patient flow and the practice purchase or build-out cost, then show that collections at a steady schedule carry the debt. A veterinary project would need exam-room capacity, doctor count and the client base behind it. A self storage project, with 620 loans here, has to show unit mix, the pace of lease-up and rents it can really achieve. With 8,934 loans lacking a named class, an applicant whose property is unusual should expect the study to supply the evidence itself, with a downside case alongside the base case and a figure an appraiser will stand behind. Self storage, with 620 loans in the file, adds one more question: how quickly new units are absorbed at the rents assumed.