Buying a Hardware Hank franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Hardware Hank (classified mostly as Hardware Retailers), totaling $4M. The median loan was $443,500, 31% 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 Hardware Hank resale loans landed between $275,600 and $1,330,000.
- Lender experience exists. Wells Fargo Bank National Association alone has financed 1 Hardware Hank resales.
- Guaranty. The SBA guaranteed 74% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Hardware Hank resale
The median SBA 7(a) loan for a Hardware Hank resale was $443,500 across 5 loans (FY2018 to FY2026). Wells Fargo Bank National Association, Alerus Financial, National Association and The Bank of Elk River have financed the most Hardware Hank 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%.
Hardware Hank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 3 | $2.3M | $275,600 | |
| FY2021 | 1 | $444K | $443,500 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $1.3M | $1,330,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Hardware Hank 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 Hardware Hank resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 1 | 20.0% | $1.9M | |
| 2 | Alerus Financial, National Association | 1 | 20.0% | $1.3M | |
| 3 | The Bank of Elk River | 1 | 20.0% | $444K | |
| 4 | First State Bank of Forsyth | 1 | 20.0% | $276K | |
| 5 | Falcon National Bank | 1 | 20.0% | $100K |
States where Hardware Hank units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 2 | 40.0% | $544K | |
| 2 | North Dakota | 1 | 20.0% | $1.9M | |
| 3 | Wisconsin | 1 | 20.0% | $1.3M | |
| 4 | Montana | 1 | 20.0% | $276K |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
How lenders classify Hardware Hank
Lenders code each loan to a NAICS industry. For Hardware Hank the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hardware Retailers | 3 | 60.0% | $3.7M | |
| 2 | All Other General Merchandise Retailers | 1 | 20.0% | $276K | |
| 3 | Gasoline Stations with Convenience Stores | 1 | 20.0% | $100K |
Questions buyers ask
How much do buyers borrow to buy a Hardware Hank franchise?
The median SBA 7(a) loan for a Hardware Hank resale was $443,500 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $275,600 to $1,330,000. 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 Hardware Hank acquisitions?
Wells Fargo Bank National Association has made the most SBA acquisition loans for Hardware Hank (1, 20% of the total). Alerus Financial, National Association, The Bank of Elk River, First State Bank of Forsyth follow.
What interest rate and term do Hardware Hank acquisition loans carry?
The average initial rate at approval was 6.26% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 20 years.
Is a Hardware Hank resale riskier than other SBA-financed acquisitions?
Too few Hardware Hank 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 Hardware Hank units being bought with SBA loans?
Minnesota (2), North Dakota (1), Wisconsin (1), Montana (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 Hardware Retailers acquisitions
- Minnesota acquisitions
- North Dakota acquisitions
- Wisconsin acquisitions
- Wells Fargo Bank National Association
- Alerus Financial, National Association
- Falcon National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Hardware Hank" (franchise code S0792). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.