Buying a Junk King franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 9 7(a) loans to buy an existing Junk King (classified mostly as Other Waste Collection), totaling $3.4M. The median loan was $345,000, 47% lower than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Junk King resale loans landed between $269,800 and $486,000.
- Lender experience exists. Northwest Bank alone has financed 2 Junk King resales.
- Guaranty. The SBA guaranteed 72% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Junk King resale
The median SBA 7(a) loan for a Junk King resale was $345,000 across 9 loans (FY2018 to FY2026). Northwest Bank, Hancock Whitney Bank and Fifth Third Bank have financed the most Junk King 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%.
Junk King acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $198K | $198,000 | |
| FY2019 | 1 | $345K | $345,000 | |
| FY2020 | 1 | $320K | $320,000 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $270K | $269,800 | |
| FY2023 | 2 | $556K | $278,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $795K | $795,000 | |
| FY2026 | 2 | $914K | $457,000 |
How often do these acquisition loans fail?
Fewer than 20 Junk King 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 Junk King resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Northwest Bank | 2 | 22.2% | $556K | |
| 2 | Hancock Whitney Bank | 1 | 11.1% | $795K | |
| 3 | Fifth Third Bank | 1 | 11.1% | $564K | |
| 4 | Live Oak Banking Company | 1 | 11.1% | $350K | |
| 5 | Byline Bank | 1 | 11.1% | $345K | |
| 6 | First Financial Bank | 1 | 11.1% | $320K | |
| 7 | Lincoln Savings Bank | 1 | 11.1% | $270K | |
| 8 | Midwest Regional Bank | 1 | 11.1% | $198K |
States where Junk King units are bought
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Junk King
Lenders code each loan to a NAICS industry. For Junk King the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Other Waste Collection | 4 | 44.4% | $1.9M | |
| 2 | Solid Waste Collection | 4 | 44.4% | $1.1M | |
| 3 | Used Household and Office Goods Moving | 1 | 11.1% | $350K |
Questions buyers ask
How much do buyers borrow to buy a Junk King franchise?
The median SBA 7(a) loan for a Junk King resale was $345,000 across 9 loans (FY2018 to FY2026). The middle half of loans ran from $269,800 to $486,000. 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 Junk King acquisitions?
Northwest Bank has made the most SBA acquisition loans for Junk King (2, 22% of the total). Hancock Whitney Bank, Fifth Third Bank, Live Oak Banking Company follow.
What interest rate and term do Junk King acquisition loans carry?
The average initial rate at approval was 8.95% (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 Junk King resale riskier than other SBA-financed acquisitions?
Too few Junk King 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 Junk King units being bought with SBA loans?
New York (2), Louisiana (1), Ohio (1), California (1), Michigan (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Other Waste Collection acquisitions
- New York acquisitions
- Louisiana acquisitions
- Ohio acquisitions
- Northwest Bank
- Hancock Whitney Bank
- Fifth Third Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Junk King" (franchise code S0919). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.