Ford Motor Company resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 11 7(a) loans to buy an existing business operating under a Ford Motor Company brand or supply agreement (classified mostly as New Car Dealers), totaling $29.8M. The median loan was $2,500,000, 287% higher than the $645,250 median for all SBA-financed acquisitions. 2 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 Ford Motor Company resale loans landed between $1,636,250 and $3,983,500.
- Lender experience exists. Live Oak Banking Company alone has financed 5 Ford Motor Company resales.
- Guaranty. The SBA guaranteed 75% 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 Ford Motor Company resale
The median SBA 7(a) loan for a Ford Motor Company resale was $2,500,000 across 11 loans (FY2018 to FY2026). Live Oak Banking Company, First National Bank of Pennsylvania and IncredibleBank have financed the most Ford Motor Company 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%.
Ford Motor Company acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $2.5M | $2,500,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 7 | $18.9M | $2,500,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $3.8M | $3,757,000 | |
| FY2025 | 1 | $2M | $2,000,000 | |
| FY2026 | 1 | $2.6M | $2,585,000 |
How often do these acquisition loans fail?
Fewer than 20 Ford Motor Company 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 Ford Motor Company resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 5 | 45.5% | $15.7M | |
| 2 | First National Bank of Pennsylvania | 2 | 18.2% | $1.5M | |
| 3 | IncredibleBank | 1 | 9.1% | $4.2M | |
| 4 | Celtic Bank Corporation | 1 | 9.1% | $3.8M | |
| 5 | Community Banks of Colorado, A Division of NBH Bank | 1 | 9.1% | $2.6M | |
| 6 | Newtek Bank, National Association | 1 | 9.1% | $2M |
States where Ford Motor Company units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Kansas | 2 | 18.2% | $5.1M | |
| 2 | North Carolina | 2 | 18.2% | $1.5M | |
| 3 | Florida | 1 | 9.1% | $5M | |
| 4 | Virginia | 1 | 9.1% | $5M | |
| 5 | Indiana | 1 | 9.1% | $4.2M | |
| 6 | Illinois | 1 | 9.1% | $3.8M | |
| 7 | Pennsylvania | 1 | 9.1% | $2.5M | |
| 8 | Michigan | 1 | 9.1% | $2M | |
| 9 | Oregon | 1 | 9.1% | $745K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Ford Motor Company
Lenders code each loan to a NAICS industry. For Ford Motor Company the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Car Dealers | 10 | 90.9% | $26M | |
| 2 | Used Car Dealers | 1 | 9.1% | $3.8M |
Questions buyers ask
How much do buyers borrow to buy a business operating under a Ford Motor Company brand or supply agreement?
The median SBA 7(a) loan for a Ford Motor Company resale was $2,500,000 across 11 loans (FY2018 to FY2026). The middle half of loans ran from $1,636,250 to $3,983,500. 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 Ford Motor Company acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Ford Motor Company (5, 45% of the total). First National Bank of Pennsylvania, IncredibleBank, Celtic Bank Corporation follow.
What interest rate and term do Ford Motor Company acquisition loans carry?
The average initial rate at approval was 6.66% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 17 years.
Is a Ford Motor Company resale riskier than other SBA-financed acquisitions?
Too few Ford Motor Company 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 Ford Motor Company units being bought with SBA loans?
Kansas (2), North Carolina (2), Florida (1), Virginia (1), 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.
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Related
- All New Car Dealers acquisitions
- Kansas acquisitions
- North Carolina acquisitions
- Florida acquisitions
- Live Oak Banking Company
- First National Bank of Pennsylvania
- IncredibleBank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Ford Motor Company Dealer Sales and Service Agreement" (franchise code S4155). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.