Buying a Five Star Painting franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Five Star Painting (classified mostly as Painting and Wall Covering Contractors), totaling $1.9M. The median loan was $267,500, 59% lower than 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 Five Star Painting resale loans landed between $236,400 and $473,000.
- Lender experience exists. First United Bank and Trust Company alone has financed 1 Five Star Painting resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Five Star Painting resale
The median SBA 7(a) loan for a Five Star Painting resale was $267,500 across 5 loans (FY2018 to FY2026). First United Bank and Trust Company, Byline Bank and Village Bank and Trust, National Association have financed the most Five Star Painting 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%.
Five Star Painting acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $236K | $236,400 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $268K | $267,500 | |
| FY2022 | 2 | $1.2M | $575,500 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $220K | $220,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Five Star Painting 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 Five Star Painting resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First United Bank and Trust Company | 1 | 20.0% | $678K | |
| 2 | Byline Bank | 1 | 20.0% | $473K | |
| 3 | Village Bank and Trust, National Association | 1 | 20.0% | $268K | |
| 4 | FDIC - Community Bank & Trust-West Georgia | 1 | 20.0% | $236K | |
| 5 | Live Oak Banking Company | 1 | 20.0% | $220K |
States where Five Star Painting units are bought
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Questions buyers ask
How much do buyers borrow to buy a Five Star Painting franchise?
The median SBA 7(a) loan for a Five Star Painting resale was $267,500 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $236,400 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 Five Star Painting acquisitions?
First United Bank and Trust Company has made the most SBA acquisition loans for Five Star Painting (1, 20% of the total). Byline Bank, Village Bank and Trust, National Association, FDIC - Community Bank & Trust-West Georgia follow.
What interest rate and term do Five Star Painting acquisition loans carry?
The average initial rate at approval was 7.75% (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 Five Star Painting resale riskier than other SBA-financed acquisitions?
Too few Five Star Painting 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 Five Star Painting units being bought with SBA loans?
Florida (2), Oklahoma (1), Illinois (1), Alabama (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 Painting and Wall Covering Contractors acquisitions
- Florida acquisitions
- Oklahoma acquisitions
- Illinois acquisitions
- First United Bank and Trust Company
- Byline Bank
- Village Bank and Trust, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Five Star Painting" (franchise code S0654). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.