Buying a H&R Block franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing H&R Block (classified mostly as Tax Preparation Services), totaling $2.9M. The median loan was $518,600, 20% lower 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 H&R Block resale loans landed between $267,300 and $894,000.
- Lender experience exists. Union Bank and Trust Company alone has financed 1 H&R Block 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 H&R Block resale
The median SBA 7(a) loan for a H&R Block resale was $518,600 across 5 loans (FY2018 to FY2026). Union Bank and Trust Company, Midwest Regional Bank and PNC Bank, National Association have financed the most H&R Block 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%.
H&R Block acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $30K | $30,000 | |
| FY2020 | 1 | $1.2M | $1,156,700 | |
| FY2021 | 1 | $894K | $894,000 | |
| FY2022 | 2 | $786K | $392,950 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 H&R Block 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 H&R Block resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Union Bank and Trust Company | 1 | 20.0% | $1.2M | |
| 2 | Midwest Regional Bank | 1 | 20.0% | $894K | |
| 3 | PNC Bank, National Association | 1 | 20.0% | $519K | |
| 4 | Frandsen Bank and Trust | 1 | 20.0% | $267K | |
| 5 | Peoples Bank | 1 | 20.0% | $30K |
States where H&R Block units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 1 | 20.0% | $1.2M | |
| 2 | Missouri | 1 | 20.0% | $894K | |
| 3 | Pennsylvania | 1 | 20.0% | $519K | |
| 4 | Wisconsin | 1 | 20.0% | $267K | |
| 5 | Ohio | 1 | 20.0% | $30K |
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Questions buyers ask
How much do buyers borrow to buy a H&R Block franchise?
The median SBA 7(a) loan for a H&R Block resale was $518,600 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $267,300 to $894,000. 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 H&R Block acquisitions?
Union Bank and Trust Company has made the most SBA acquisition loans for H&R Block (1, 20% of the total). Midwest Regional Bank, PNC Bank, National Association, Frandsen Bank and Trust follow.
What interest rate and term do H&R Block acquisition loans carry?
The average initial rate at approval was 5.70% (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 H&R Block resale riskier than other SBA-financed acquisitions?
Too few H&R Block 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 H&R Block units being bought with SBA loans?
Texas (1), Missouri (1), Pennsylvania (1), Wisconsin (1), Ohio (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 Tax Preparation Services acquisitions
- Texas acquisitions
- Missouri acquisitions
- Pennsylvania acquisitions
- Union Bank and Trust Company
- Midwest Regional Bank
- PNC Bank, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "H&R Block - Franchise License Agreement" (franchise code S0756). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.