Chrysler resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing business operating under a Chrysler brand or supply agreement (classified mostly as New Car Dealers), totaling $39.7M. The median loan was $3,312,500, 413% higher 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 Chrysler resale loans landed between $2,145,000 and $5,000,000.
- Lender experience exists. Live Oak Banking Company alone has financed 10 Chrysler resales.
- Guaranty. The SBA guaranteed 73% of the dollars lent here.
- What the file leaves out. The SBA file does not record the terms of the brand or supply agreement.
Financing a Chrysler resale
The median SBA 7(a) loan for a Chrysler resale was $3,312,500 across 12 loans (FY2018 to FY2026). Live Oak Banking Company and Cedar Rapids Bank and Trust Company have financed the most Chrysler 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%.
Chrysler acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $1.8M | $1,800,000 | |
| FY2021 | 5 | $12.4M | $2,520,000 | |
| FY2022 | 4 | $16.4M | $5,000,000 | |
| FY2023 | 2 | $9.1M | $4,550,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Chrysler 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Chrysler resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 10 | 83.3% | $36.4M | |
| 2 | Cedar Rapids Bank and Trust Company | 2 | 16.7% | $3.3M |
States where Chrysler units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Virginia | 2 | 16.7% | $6.8M | |
| 2 | Pennsylvania | 2 | 16.7% | $5.5M | |
| 3 | Iowa | 2 | 16.7% | $3.3M | |
| 4 | California | 1 | 8.3% | $5M | |
| 5 | Kentucky | 1 | 8.3% | $5M | |
| 6 | Wisconsin | 1 | 8.3% | $5M | |
| 7 | Oregon | 1 | 8.3% | $4.1M | |
| 8 | Texas | 1 | 8.3% | $2.5M | |
| 9 | South Carolina | 1 | 8.3% | $2.5M |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a business operating under a Chrysler brand or supply agreement?
The median SBA 7(a) loan for a Chrysler resale was $3,312,500 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $2,145,000 to $5,000,000. 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 Chrysler acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Chrysler (10, 83% of the total). Cedar Rapids Bank and Trust Company follow.
What interest rate and term do Chrysler acquisition loans carry?
The average initial rate at approval was 5.83% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10.1 years.
Is a Chrysler resale riskier than other SBA-financed acquisitions?
Too few Chrysler 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 Chrysler units being bought with SBA loans?
Virginia (2), Pennsylvania (2), Iowa (2), California (1), Kentucky (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All New Car Dealers acquisitions
- Virginia acquisitions
- Pennsylvania acquisitions
- Iowa acquisitions
- Live Oak Banking Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Chrysler - Sales and Service Agreement" (franchise code S2810). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.