SBA Acquisition Data

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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acquisition loans
5
FY2018 to FY2026
total approved
$2.7M
gross loan amount
median loan
$550,000
5 loans
avg initial rate
7.45%
at approval, mixed years
median term
10 years
120 months

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

1-800-Radiator & A/C SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian 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 ranked by SBA acquisition loans
#LenderLoansShareDollars
1Frost Bank1
20.0%$800K
2Civista Bank1
20.0%$750K
3Newtek Small Business Finance, LLC1
20.0%$550K
4Stearns Bank National Association1
20.0%$350K
5BankOrion1
20.0%$222K

States where 1-800-Radiator & A/C units are bought

State ranked by SBA acquisition loans
#StateLoansShareDollars
1Texas2
40.0%$1.4M
2Indiana1
20.0%$750K
3Florida1
20.0%$350K
4Iowa1
20.0%$222K
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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 ranked by SBA acquisition loans
#IndustryLoansShareDollars
1Motor Vehicle Supplies and New Parts Merchant Wholesalers2
40.0%$1.4M
2Automotive Parts and Accessories Retailers1
20.0%$750K
3Automotive Parts and Accessories Stores1
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.

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Related

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.