Buying an IGA USA franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing IGA USA (classified mostly as Supermarkets and Other Grocery Retailers (except Convenience Retailers)), totaling $3.3M. The median loan was $494,000, 23% 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 IGA USA resale loans landed between $456,000 and $1,117,300.
- Lender experience exists. Northwest Bank alone has financed 2 IGA USA 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 an IGA USA resale
The median SBA 7(a) loan for an IGA USA resale was $494,000 across 5 loans (FY2018 to FY2026). Northwest Bank, Pinnacle Bank and First Interstate Bank have financed the most IGA USA 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%.
IGA USA acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $494K | $494,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $1.2M | $1,220,000 | |
| FY2022 | 1 | $1.1M | $1,117,300 | |
| FY2023 | 2 | $481K | $240,500 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 IGA USA 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing IGA USA resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Northwest Bank | 2 | 40.0% | $481K | |
| 2 | Pinnacle Bank | 1 | 20.0% | $1.2M | |
| 3 | First Interstate Bank | 1 | 20.0% | $1.1M | |
| 4 | The Huntington National Bank | 1 | 20.0% | $494K |
States where IGA USA units are bought
Seller note standby terms and third-party consents are reviewed before closing.
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Questions buyers ask
How much do buyers borrow to buy an IGA USA franchise?
The median SBA 7(a) loan for an IGA USA resale was $494,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $456,000 to $1,117,300. 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 IGA USA acquisitions?
Northwest Bank has made the most SBA acquisition loans for IGA USA (2, 40% of the total). Pinnacle Bank, First Interstate Bank, The Huntington National Bank follow.
What interest rate and term do IGA USA acquisition loans carry?
The average initial rate at approval was 8.01% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 21.8 years.
Is an IGA USA resale riskier than other SBA-financed acquisitions?
Too few IGA USA 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 IGA USA units being bought with SBA loans?
Ohio (3), Virginia (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.
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 Supermarkets and Other Grocery Retailers (except Convenience Retailers) acquisitions
- Ohio acquisitions
- Virginia acquisitions
- Montana acquisitions
- Northwest Bank
- Pinnacle Bank
- First Interstate Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "IGA USA - License Agreement" (franchise code S2656). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.