Buying a Home Instead franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 114 7(a) loans to buy an existing Home Instead (classified mostly as Home Health Care Services), totaling $119M. The median loan was $642,500, in line with the $645,250 median for all SBA-financed acquisitions. 20 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 Home Instead resale loans landed between $278,750 and $1,350,000.
- Lender experience exists. Live Oak Banking Company alone has financed 56 Home Instead 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 Home Instead resale
The median SBA 7(a) loan for a Home Instead resale was $642,500 across 114 loans (FY2018 to FY2026). Live Oak Banking Company, Associated Bank National Association and First Commonwealth Bank have financed the most Home Instead resales. Of 53 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Home Instead acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $5.8M | $822,600 | |
| FY2019 | 14 | $12.3M | $559,750 | |
| FY2020 | 16 | $10M | $532,500 | |
| FY2021 | 16 | $14.6M | $660,750 | |
| FY2022 | 18 | $18.1M | $897,200 | |
| FY2023 | 19 | $24.9M | $660,000 | |
| FY2024 | 4 | $4.7M | $1,041,750 | |
| FY2025 | 8 | $6M | $459,100 | |
| FY2026 | 12 | $22.8M | $1,565,150 |
How often do these acquisition loans fail?
Of the 53 Home Instead acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 36 have already been paid in full.
For comparison, Home Instead has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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 Home Instead resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 56 | 49.1% | $65.7M | |
| 2 | Associated Bank National Association | 29 | 25.4% | $24.1M | |
| 3 | First Commonwealth Bank | 5 | 4.4% | $3.6M | |
| 4 | Byline Bank | 4 | 3.5% | $4.4M | |
| 5 | Stearns Bank National Association | 3 | 2.6% | $1.9M | |
| 6 | The Huntington National Bank | 2 | 1.8% | $2.3M | |
| 7 | Wells Fargo Bank National Association | 2 | 1.8% | $1.2M | |
| 8 | CIBC Bank USA | 2 | 1.8% | $1.1M | |
| 9 | First National Bank of Pennsylvania | 1 | 0.9% | $4.1M | |
| 10 | OakStar Bank | 1 | 0.9% | $2.5M |
States where Home Instead units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 16 | 14.0% | $9.7M | |
| 2 | California | 12 | 10.5% | $10M | |
| 3 | Florida | 8 | 7.0% | $8.8M | |
| 4 | North Carolina | 7 | 6.1% | $10.9M | |
| 5 | Maryland | 6 | 5.3% | $9.7M | |
| 6 | Georgia | 6 | 5.3% | $5.9M | |
| 7 | Pennsylvania | 6 | 5.3% | $5.5M | |
| 8 | Ohio | 5 | 4.4% | $8M | |
| 9 | Massachusetts | 5 | 4.4% | $4.3M | |
| 10 | New Jersey | 5 | 4.4% | $3.3M |
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How lenders classify Home Instead
Lenders code each loan to a NAICS industry. For Home Instead the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Home Health Care Services | 88 | 77.2% | $85.5M | |
| 2 | Services for the Elderly and Persons with Disabilities | 22 | 19.3% | $28.4M | |
| 3 | Other Individual and Family Services | 2 | 1.8% | $1.1M | |
| 4 | Assisted Living Facilities for the Elderly | 1 | 0.9% | $769K |
Questions buyers ask
How much do buyers borrow to buy a Home Instead franchise?
The median SBA 7(a) loan for a Home Instead resale was $642,500 across 114 loans (FY2018 to FY2026). The middle half of loans ran from $278,750 to $1,350,000. 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 Home Instead acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Home Instead (56, 49% of the total). Associated Bank National Association, First Commonwealth Bank, Byline Bank follow.
What interest rate and term do Home Instead acquisition loans carry?
The average initial rate at approval was 7.24% (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 Home Instead resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), none charged off, against the 3.5% average for all SBA acquisition loans.
Where are Home Instead units being bought with SBA loans?
Texas (16), California (12), Florida (8), North Carolina (7), Maryland (6). 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 Home Health Care Services acquisitions
- Texas acquisitions
- California acquisitions
- Florida acquisitions
- Live Oak Banking Company
- Associated Bank National Association
- First Commonwealth Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Home Instead" (franchise code S0811). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.