Circle K resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 17 7(a) loans to buy an existing business operating under a Circle K brand or supply agreement (classified mostly as Gasoline Stations with Convenience Stores), totaling $20.4M. The median loan was $672,000, in line with the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Circle K resale loans landed between $525,000 and $2,123,000.
- Lender experience exists. American Continental Bank alone has financed 3 Circle K resales.
- Guaranty. The SBA guaranteed 77% 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 Circle K resale
The median SBA 7(a) loan for a Circle K resale was $672,000 across 17 loans (FY2018 to FY2026). American Continental Bank, Celtic Bank Corporation and Open Bank have financed the most Circle K 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%.
Circle K acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $540K | $540,000 | |
| FY2019 | 2 | $483K | $241,250 | |
| FY2020 | 4 | $7.6M | $1,828,000 | |
| FY2021 | 2 | $3.2M | $1,616,000 | |
| FY2022 | 2 | $3.3M | $1,634,200 | |
| FY2023 | 3 | $2.2M | $727,000 | |
| FY2024 | 2 | $1.1M | $548,750 | |
| FY2025 | 1 | $2.1M | $2,123,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Circle K 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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Circle K resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | American Continental Bank | 3 | 17.6% | $1.9M | |
| 2 | Celtic Bank Corporation | 2 | 11.8% | $4.7M | |
| 3 | Open Bank | 2 | 11.8% | $3.3M | |
| 4 | BankUnited, National Association | 2 | 11.8% | $2.4M | |
| 5 | Byline Bank | 2 | 11.8% | $1.3M | |
| 6 | United Business Bank | 1 | 5.9% | $3.8M | |
| 7 | Wallis Bank | 1 | 5.9% | $1.3M | |
| 8 | Commonwealth Business Bank | 1 | 5.9% | $672K | |
| 9 | Endeavor Bank | 1 | 5.9% | $573K | |
| 10 | Hanmi Bank | 1 | 5.9% | $295K |
States where Circle K units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 13 | 76.5% | $16.4M | |
| 2 | Illinois | 2 | 11.8% | $2.4M | |
| 3 | Texas | 1 | 5.9% | $1.3M | |
| 4 | Washington | 1 | 5.9% | $295K |
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Circle K
Lenders code each loan to a NAICS industry. For Circle K the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Gasoline Stations with Convenience Stores | 12 | 70.6% | $17.5M | |
| 2 | Convenience Retailers | 5 | 29.4% | $2.9M |
Questions buyers ask
How much do buyers borrow to buy a business operating under a Circle K brand or supply agreement?
The median SBA 7(a) loan for a Circle K resale was $672,000 across 17 loans (FY2018 to FY2026). The middle half of loans ran from $525,000 to $2,123,000. 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 Circle K acquisitions?
American Continental Bank has made the most SBA acquisition loans for Circle K (3, 18% of the total). Celtic Bank Corporation, Open Bank, BankUnited, National Association follow.
What interest rate and term do Circle K acquisition loans carry?
The average initial rate at approval was 7.63% (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 Circle K resale riskier than other SBA-financed acquisitions?
Too few Circle K 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 Circle K units being bought with SBA loans?
California (13), Illinois (2), Texas (1), Washington (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.
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Related
- All Gasoline Stations with Convenience Stores acquisitions
- California acquisitions
- Illinois acquisitions
- Texas acquisitions
- American Continental Bank
- Celtic Bank Corporation
- Open Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Circle K (C-store Agreement only)" (franchise code S2146). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.