Buying an East of Chicago Pizza franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing East of Chicago Pizza (classified mostly as Limited-Service Restaurants), totaling $1.4M. The median loan was $228,700, 65% lower than the $645,250 median for all SBA-financed acquisitions. 2 of these loans were approved in the last two fiscal years.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of East of Chicago Pizza resale loans landed between $75,000 and $473,000.
- Lender experience exists. The Huntington National Bank alone has financed 4 East of Chicago Pizza resales.
- Guaranty. The SBA guaranteed 69% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing an East of Chicago Pizza resale
The median SBA 7(a) loan for an East of Chicago Pizza resale was $228,700 across 5 loans (FY2018 to FY2026). The Huntington National Bank and 1st Source Bank have financed the most East of Chicago Pizza 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%.
East of Chicago Pizza acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $229K | $228,700 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $498K | $249,000 | |
| FY2025 | 2 | $718K | $358,750 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 East of Chicago Pizza 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 East of Chicago Pizza resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 4 | 80.0% | $1.2M | |
| 2 | 1st Source Bank | 1 | 20.0% | $229K |
States where East of Chicago Pizza units are bought
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify East of Chicago Pizza
Lenders code each loan to a NAICS industry. For East of Chicago Pizza the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 3 | 60.0% | $946K | |
| 2 | Full-Service Restaurants | 2 | 40.0% | $498K |
Questions buyers ask
How much do buyers borrow to buy an East of Chicago Pizza franchise?
The median SBA 7(a) loan for an East of Chicago Pizza resale was $228,700 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $75,000 to $473,000. 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 East of Chicago Pizza acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for East of Chicago Pizza (4, 80% of the total). 1st Source Bank follow.
What interest rate and term do East of Chicago Pizza acquisition loans carry?
The average initial rate at approval was 9.20% (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 an East of Chicago Pizza resale riskier than other SBA-financed acquisitions?
Too few East of Chicago Pizza 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 East of Chicago Pizza units being bought with SBA loans?
Ohio (4), Indiana (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Limited-Service Restaurants acquisitions
- Ohio acquisitions
- Indiana acquisitions
- The Huntington National Bank
- 1st Source Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "East of Chicago Pizza" (franchise code S0562). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.