Buying a CPR franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing CPR (classified mostly as Electronics and Appliance Retailers), totaling $1.2M. The median loan was $239,000, 63% lower 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 CPR resale loans landed between $225,000 and $297,000.
- Lender experience exists. U.S. Bank, National Association alone has financed 2 CPR resales.
- Guaranty. The SBA guaranteed 74% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a CPR resale
The median SBA 7(a) loan for a CPR resale was $239,000 across 5 loans (FY2018 to FY2026). U.S. Bank, National Association, SouthState Bank, National Association and MVB Bank, Inc. have financed the most CPR 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%.
CPR acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $381K | $381,000 | |
| FY2019 | 3 | $514K | $225,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $297K | $297,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 CPR 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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing CPR resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 2 | 40.0% | $289K | |
| 2 | SouthState Bank, National Association | 1 | 20.0% | $381K | |
| 3 | MVB Bank, Inc. | 1 | 20.0% | $297K | |
| 4 | Arvest Bank | 1 | 20.0% | $225K |
States where CPR units are bought
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How lenders classify CPR
Lenders code each loan to a NAICS industry. For CPR the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Electronics and Appliance Retailers | 2 | 40.0% | $289K | |
| 2 | Electronic and Precision Equipment Repair and Maintenance | 1 | 20.0% | $297K | |
| 3 | Other Personal and Household Goods Repair and Maintenance | 1 | 20.0% | $225K |
Questions buyers ask
How much do buyers borrow to buy a CPR franchise?
The median SBA 7(a) loan for a CPR resale was $239,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $225,000 to $297,000. 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 CPR acquisitions?
U.S. Bank, National Association has made the most SBA acquisition loans for CPR (2, 40% of the total). SouthState Bank, National Association, MVB Bank, Inc., Arvest Bank follow.
What interest rate and term do CPR acquisition loans carry?
The average initial rate at approval was 7.47% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 6.4 years.
Is a CPR resale riskier than other SBA-financed acquisitions?
Too few CPR 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 CPR units being bought with SBA loans?
Minnesota (2), Georgia (1), Indiana (1), Arkansas (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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Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Electronics and Appliance Retailers acquisitions
- Minnesota acquisitions
- Georgia acquisitions
- Indiana acquisitions
- U.S. Bank, National Association
- SouthState Bank, National Association
- MVB Bank, Inc.
- All franchise brands
Brand name as recorded by lenders in the SBA file: "CPR - Cell Phone Repair" (franchise code S2369). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.