Honda Powersports Sales and Service Agreements resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing business operating under a Honda Powersports Sales and Service Agreements brand or supply agreement (classified mostly as Motorcycle, ATV, and All Other Motor Vehicle Dealers), totaling $5.9M. The median loan was $898,500, 39% 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 Honda Powersports Sales and Service Agreements resale loans landed between $691,250 and $1,412,500.
- Lender experience exists. Alpine Bank alone has financed 1 Honda Powersports Sales and Service Agreements resales.
- Guaranty. The SBA guaranteed 78% 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 Honda Powersports Sales and Service Agreements resale
The median SBA 7(a) loan for a Honda Powersports Sales and Service Agreements resale was $898,500 across 6 loans (FY2018 to FY2026). Alpine Bank, IncredibleBank and Countybank have financed the most Honda Powersports Sales and Service Agreements 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%.
Honda Powersports Sales and Service Agreements acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $1.4M | $706,500 | |
| FY2020 | 2 | $2.6M | $1,295,000 | |
| FY2021 | 1 | $1.6M | $1,600,000 | |
| FY2022 | 1 | $250K | $250,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Honda Powersports Sales and Service Agreements 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 Honda Powersports Sales and Service Agreements resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Alpine Bank | 1 | 16.7% | $1.6M | |
| 2 | IncredibleBank | 1 | 16.7% | $1.5M | |
| 3 | Countybank | 1 | 16.7% | $1.1M | |
| 4 | Core Bank | 1 | 16.7% | $737K | |
| 5 | Enterprise Bank & Trust | 1 | 16.7% | $676K | |
| 6 | Heritage Bank | 1 | 16.7% | $250K |
States where Honda Powersports Sales and Service Agreements units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Missouri | 2 | 33.3% | $1.4M | |
| 2 | Colorado | 1 | 16.7% | $1.6M | |
| 3 | Michigan | 1 | 16.7% | $1.5M | |
| 4 | South Carolina | 1 | 16.7% | $1.1M | |
| 5 | Washington | 1 | 16.7% | $250K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Honda Powersports Sales and Service Agreements
Lenders code each loan to a NAICS industry. For Honda Powersports Sales and Service Agreements the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motorcycle, ATV, and All Other Motor Vehicle Dealers | 5 | 83.3% | $5.2M | |
| 2 | Recreational Vehicle Dealers | 1 | 16.7% | $676K |
Questions buyers ask
How much do buyers borrow to buy a business operating under a Honda Powersports Sales and Service Agreements brand or supply agreement?
The median SBA 7(a) loan for a Honda Powersports Sales and Service Agreements resale was $898,500 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $691,250 to $1,412,500. 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 Honda Powersports Sales and Service Agreements acquisitions?
Alpine Bank has made the most SBA acquisition loans for Honda Powersports Sales and Service Agreements (1, 17% of the total). IncredibleBank, Countybank, Core Bank follow.
What interest rate and term do Honda Powersports Sales and Service Agreements acquisition loans carry?
The average initial rate at approval was 5.83% (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 Honda Powersports Sales and Service Agreements resale riskier than other SBA-financed acquisitions?
Too few Honda Powersports Sales and Service Agreements 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 Honda Powersports Sales and Service Agreements units being bought with SBA loans?
Missouri (2), Colorado (1), Michigan (1), South Carolina (1), Washington (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 Motorcycle, ATV, and All Other Motor Vehicle Dealers acquisitions
- Missouri acquisitions
- Colorado acquisitions
- Michigan acquisitions
- IncredibleBank
- Countybank
- Core Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Honda Powersports Sales and Service Agreements" (franchise code S3378). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.