Buying a 1-800-Radiator & A/C franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing 1-800-Radiator & A/C (classified mostly as Motor Vehicle Supplies and New Parts Merchant Wholesalers), totaling $2.7M. The median loan was $550,000, 15% lower than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of 1-800-Radiator & A/C resale loans landed between $350,000 and $750,000.
- Lender experience exists. Frost Bank alone has financed 1 1-800-Radiator & A/C resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a 1-800-Radiator & A/C resale
The median SBA 7(a) loan for a 1-800-Radiator & A/C resale was $550,000 across 5 loans (FY2018 to FY2026). Frost Bank, Civista Bank and Newtek Small Business Finance, LLC have financed the most 1-800-Radiator & A/C resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
1-800-Radiator & A/C acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $1.2M | $575,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $550K | $550,000 | |
| FY2022 | 1 | $222K | $222,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $750K | $750,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 1-800-Radiator & A/C acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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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Lenders financing 1-800-Radiator & A/C resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Frost Bank | 1 | 20.0% | $800K | |
| 2 | Civista Bank | 1 | 20.0% | $750K | |
| 3 | Newtek Small Business Finance, LLC | 1 | 20.0% | $550K | |
| 4 | Stearns Bank National Association | 1 | 20.0% | $350K | |
| 5 | BankOrion | 1 | 20.0% | $222K |
States where 1-800-Radiator & A/C units are bought
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify 1-800-Radiator & A/C
Lenders code each loan to a NAICS industry. For 1-800-Radiator & A/C the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motor Vehicle Supplies and New Parts Merchant Wholesalers | 2 | 40.0% | $1.4M | |
| 2 | Automotive Parts and Accessories Retailers | 1 | 20.0% | $750K | |
| 3 | Automotive Parts and Accessories Stores | 1 | 20.0% | $350K |
Questions buyers ask
How much do buyers borrow to buy a 1-800-Radiator & A/C franchise?
The median SBA 7(a) loan for a 1-800-Radiator & A/C resale was $550,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $350,000 to $750,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance 1-800-Radiator & A/C acquisitions?
Frost Bank has made the most SBA acquisition loans for 1-800-Radiator & A/C (1, 20% of the total). Civista Bank, Newtek Small Business Finance, LLC, Stearns Bank National Association follow.
What interest rate and term do 1-800-Radiator & A/C acquisition loans carry?
The average initial rate at approval was 7.45% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a 1-800-Radiator & A/C resale riskier than other SBA-financed acquisitions?
Too few 1-800-Radiator & A/C acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are 1-800-Radiator & A/C units being bought with SBA loans?
Texas (2), Indiana (1), Florida (1), Iowa (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Motor Vehicle Supplies and New Parts Merchant Wholesalers acquisitions
- Texas acquisitions
- Indiana acquisitions
- Florida acquisitions
- Frost Bank
- Newtek Small Business Finance, LLC
- Stearns Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "1-800-Radiator & A/C" (franchise code S0007). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.