Buying a Closet Factory franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Closet Factory (classified mostly as Wood Kitchen Cabinet and Countertop Manufacturing), totaling $11.3M. The median loan was $632,400, in line with the $645,250 median for all SBA-financed acquisitions. 4 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Closet Factory resale loans landed between $337,500 and $1,302,250.
- Lender experience exists. Live Oak Banking Company alone has financed 4 Closet Factory resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Closet Factory resale
The median SBA 7(a) loan for a Closet Factory resale was $632,400 across 12 loans (FY2018 to FY2026). Live Oak Banking Company, Beacon Bank and Trust and First Bank of the Lake have financed the most Closet Factory 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%.
Closet Factory acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $125K | $125,000 | |
| FY2019 | 1 | $446K | $446,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $3M | $1,476,900 | |
| FY2022 | 3 | $4.4M | $1,465,000 | |
| FY2023 | 1 | $726K | $726,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $1.1M | $562,500 | |
| FY2026 | 2 | $1.6M | $799,000 |
How often do these acquisition loans fail?
Fewer than 20 Closet Factory 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 Closet Factory resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | 33.3% | $2.7M | |
| 2 | Beacon Bank and Trust | 2 | 16.7% | $1.6M | |
| 3 | First Bank of the Lake | 1 | 8.3% | $2.8M | |
| 4 | CIBC Bank USA | 1 | 8.3% | $2.4M | |
| 5 | Equitable Bank | 1 | 8.3% | $726K | |
| 6 | Stock Yards Bank & Trust Company | 1 | 8.3% | $539K | |
| 7 | Wells Fargo Bank National Association | 1 | 8.3% | $446K | |
| 8 | Mountain America FCU | 1 | 8.3% | $125K |
States where Closet Factory units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 3 | 25.0% | $3.9M | |
| 2 | Pennsylvania | 2 | 16.7% | $1.6M | |
| 3 | South Carolina | 2 | 16.7% | $1.6M | |
| 4 | Nebraska | 2 | 16.7% | $1.2M | |
| 5 | North Carolina | 1 | 8.3% | $2.4M | |
| 6 | Kentucky | 1 | 8.3% | $539K | |
| 7 | Utah | 1 | 8.3% | $125K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify Closet Factory
Lenders code each loan to a NAICS industry. For Closet Factory the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wood Kitchen Cabinet and Countertop Manufacturing | 4 | 33.3% | $3.2M | |
| 2 | Other Building Finishing Contractors | 3 | 25.0% | $1.3M | |
| 3 | All Other Home Furnishings Stores | 2 | 16.7% | $5.2M | |
| 4 | All Other Specialty Trade Contractors | 1 | 8.3% | $726K | |
| 5 | All Other Miscellaneous Manufacturing | 1 | 8.3% | $539K |
Questions buyers ask
How much do buyers borrow to buy a Closet Factory franchise?
The median SBA 7(a) loan for a Closet Factory resale was $632,400 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $337,500 to $1,302,250. 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 Closet Factory acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Closet Factory (4, 33% of the total). Beacon Bank and Trust, First Bank of the Lake, CIBC Bank USA follow.
What interest rate and term do Closet Factory acquisition loans carry?
The average initial rate at approval was 7.12% (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 Closet Factory resale riskier than other SBA-financed acquisitions?
Too few Closet Factory 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 Closet Factory units being bought with SBA loans?
Texas (3), Pennsylvania (2), South Carolina (2), Nebraska (2), North Carolina (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.
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 Wood Kitchen Cabinet and Countertop Manufacturing acquisitions
- Texas acquisitions
- Pennsylvania acquisitions
- South Carolina acquisitions
- Live Oak Banking Company
- Beacon Bank and Trust
- First Bank of the Lake
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Closet Factory" (franchise code S0390). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.