General Motors resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing business operating under a General Motors brand or supply agreement (classified mostly as New Car Dealers), totaling $19.5M. The median loan was $2,500,000, 287% higher 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 General Motors resale loans landed between $2,056,750 and $3,255,000.
- Lender experience exists. Live Oak Banking Company alone has financed 6 General Motors resales.
- Guaranty. The SBA guaranteed 79% 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 General Motors resale
The median SBA 7(a) loan for a General Motors resale was $2,500,000 across 7 loans (FY2018 to FY2026). Live Oak Banking Company and Midland States Bank have financed the most General Motors 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%.
General Motors acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 2 | $6.4M | $3,182,500 | |
| FY2021 | 3 | $7M | $2,500,000 | |
| FY2022 | 1 | $2.4M | $2,363,500 | |
| FY2023 | 1 | $3.8M | $3,750,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 General Motors 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 General Motors resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 6 | 85.7% | $17.1M | |
| 2 | Midland States Bank | 1 | 14.3% | $2.4M |
States where General Motors units are bought
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a business operating under a General Motors brand or supply agreement?
The median SBA 7(a) loan for a General Motors resale was $2,500,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $2,056,750 to $3,255,000. 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 General Motors acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for General Motors (6, 86% of the total). Midland States Bank follow.
What interest rate and term do General Motors acquisition loans carry?
The average initial rate at approval was 5.75% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is a General Motors resale riskier than other SBA-financed acquisitions?
Too few General Motors 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 General Motors units being bought with SBA loans?
Texas (1), South Carolina (1), Ohio (1), Indiana (1), Illinois (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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All New Car Dealers acquisitions
- Texas acquisitions
- South Carolina acquisitions
- Ohio acquisitions
- Live Oak Banking Company
- Midland States Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "General Motors, LLC (Chevrolet, Buick, GM, Cadillac) Dealer Sales and Service Agreement" (franchise code S5004). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.