Buying a BrightStar Care franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 38 7(a) loans to buy an existing BrightStar Care (classified mostly as Home Health Care Services), totaling $41.7M. The median loan was $707,300, 10% higher than the $645,250 median for all SBA-financed acquisitions. 15 of these loans were approved in the last two fiscal years.
Financing one? Read the guide: How to get an SBA loan to buy a home care franchise
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of BrightStar Care resale loans landed between $203,250 and $1,405,500.
- Lender experience exists. Live Oak Banking Company alone has financed 28 BrightStar Care resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a BrightStar Care resale
The median SBA 7(a) loan for a BrightStar Care resale was $707,300 across 38 loans (FY2018 to FY2026). Live Oak Banking Company, Associated Bank National Association and The Huntington National Bank have financed the most BrightStar Care 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%.
BrightStar Care acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 7 | $9.1M | $1,240,000 | |
| FY2020 | 1 | $755K | $754,600 | |
| FY2021 | 7 | $3.9M | $510,000 | |
| FY2022 | 7 | $9M | $815,000 | |
| FY2023 | 1 | $5M | $5,000,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 4 | $2.3M | $350,000 | |
| FY2026 | 11 | $11.8M | $450,000 |
How often do these acquisition loans fail?
Fewer than 20 BrightStar Care 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 BrightStar Care resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 28 | 73.7% | $31.2M | |
| 2 | Associated Bank National Association | 4 | 10.5% | $6.3M | |
| 3 | The Huntington National Bank | 1 | 2.6% | $1.7M | |
| 4 | CIBC Bank USA | 1 | 2.6% | $904K | |
| 5 | Lake Michigan CU | 1 | 2.6% | $755K | |
| 6 | United Community Bank | 1 | 2.6% | $510K | |
| 7 | Stearns Bank National Association | 1 | 2.6% | $270K | |
| 8 | Oxford Bank | 1 | 2.6% | $120K |
States where BrightStar Care units are bought
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
How lenders classify BrightStar Care
Lenders code each loan to a NAICS industry. For BrightStar Care the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Home Health Care Services | 29 | 76.3% | $31.9M | |
| 2 | Services for the Elderly and Persons with Disabilities | 6 | 15.8% | $7.6M | |
| 3 | Assisted Living Facilities for the Elderly | 2 | 5.3% | $1.9M | |
| 4 | Child Care Services | 1 | 2.6% | $315K |
Questions buyers ask
How much do buyers borrow to buy a BrightStar Care franchise?
The median SBA 7(a) loan for a BrightStar Care resale was $707,300 across 38 loans (FY2018 to FY2026). The middle half of loans ran from $203,250 to $1,405,500. 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 BrightStar Care acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for BrightStar Care (28, 74% of the total). Associated Bank National Association, The Huntington National Bank, CIBC Bank USA follow.
What interest rate and term do BrightStar Care acquisition loans carry?
The average initial rate at approval was 7.42% (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 BrightStar Care resale riskier than other SBA-financed acquisitions?
Too few BrightStar Care 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 BrightStar Care units being bought with SBA loans?
Illinois (6), Georgia (6), Arizona (4), Wisconsin (3), Florida (3). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Home Health Care Services acquisitions
- Illinois acquisitions
- Georgia acquisitions
- Arizona acquisitions
- Live Oak Banking Company
- Associated Bank National Association
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "BrightStar Care" (franchise code S0253). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.