Farmers Insurance resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 14 7(a) loans to buy an existing business operating under a Farmers Insurance brand or supply agreement (classified mostly as Insurance Agencies and Brokerages), totaling $6.1M. The median loan was $314,750, 51% lower than the $645,250 median for all SBA-financed acquisitions. 4 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 Farmers Insurance resale loans landed between $120,150 and $544,550.
- Lender experience exists. Stearns Bank National Association alone has financed 3 Farmers Insurance 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 Farmers Insurance resale
The median SBA 7(a) loan for a Farmers Insurance resale was $314,750 across 14 loans (FY2018 to FY2026). Stearns Bank National Association, MVB Bank, Inc. and First Bank of Central Ohio have financed the most Farmers Insurance 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%.
Farmers Insurance acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 3 | $556K | $140,000 | |
| FY2020 | 2 | $834K | $417,000 | |
| FY2021 | 1 | $298K | $298,000 | |
| FY2022 | 3 | $2.1M | $597,500 | |
| FY2023 | 1 | $63K | $63,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $1.5M | $733,800 | |
| FY2026 | 2 | $755K | $377,550 |
How often do these acquisition loans fail?
Fewer than 20 Farmers Insurance 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 Farmers Insurance resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Stearns Bank National Association | 3 | 21.4% | $556K | |
| 2 | MVB Bank, Inc. | 1 | 7.1% | $1.4M | |
| 3 | First Bank of Central Ohio | 1 | 7.1% | $1.3M | |
| 4 | United Midwest Savings Bank National Association | 1 | 7.1% | $720K | |
| 5 | Live Oak Banking Company | 1 | 7.1% | $598K | |
| 6 | Citizens Bank | 1 | 7.1% | $386K | |
| 7 | U.S. Bank, National Association | 1 | 7.1% | $369K | |
| 8 | Wells Fargo Bank National Association | 1 | 7.1% | $298K | |
| 9 | Minnwest Bank | 1 | 7.1% | $139K | |
| 10 | Arvest Bank | 1 | 7.1% | $114K |
States where Farmers Insurance units are bought
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Questions buyers ask
How much do buyers borrow to buy a business operating under a Farmers Insurance brand or supply agreement?
The median SBA 7(a) loan for a Farmers Insurance resale was $314,750 across 14 loans (FY2018 to FY2026). The middle half of loans ran from $120,150 to $544,550. 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 Farmers Insurance acquisitions?
Stearns Bank National Association has made the most SBA acquisition loans for Farmers Insurance (3, 21% of the total). MVB Bank, Inc., First Bank of Central Ohio, United Midwest Savings Bank National Association follow.
What interest rate and term do Farmers Insurance acquisition loans carry?
The average initial rate at approval was 7.66% (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 Farmers Insurance resale riskier than other SBA-financed acquisitions?
Too few Farmers Insurance 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 Farmers Insurance units being bought with SBA loans?
California (4), Texas (3), Missouri (2), Arizona (1), Colorado (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 Insurance Agencies and Brokerages acquisitions
- California acquisitions
- Texas acquisitions
- Missouri acquisitions
- Stearns Bank National Association
- MVB Bank, Inc.
- First Bank of Central Ohio
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Farmers Insurance Agent Appointment Agreement" (franchise code S3883). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.