Buying a Knights Inn franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Knights Inn (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $12.6M. The median loan was $1,274,400, 98% higher than the $645,250 median for all SBA-financed acquisitions.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Knights Inn resale loans landed between $1,061,500 and $1,708,750.
- Lender experience exists. United Midwest Savings Bank National Association alone has financed 2 Knights Inn resales.
- Guaranty. The SBA guaranteed 84% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Knights Inn resale
The median SBA 7(a) loan for a Knights Inn resale was $1,274,400 across 8 loans (FY2018 to FY2026). United Midwest Savings Bank National Association, Peapack Private Bank and Trust and GBank have financed the most Knights Inn 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%.
Knights Inn acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $871K | $871,000 | |
| FY2019 | 3 | $2.9M | $1,125,000 | |
| FY2020 | 1 | $1.3M | $1,297,000 | |
| FY2021 | 3 | $7.5M | $2,140,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Knights Inn 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.
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Lenders financing Knights Inn resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 2 | 25.0% | $3M | |
| 2 | Peapack Private Bank and Trust | 1 | 12.5% | $3.8M | |
| 3 | GBank | 1 | 12.5% | $1.6M | |
| 4 | The Huntington National Bank | 1 | 12.5% | $1.3M | |
| 5 | Celtic Bank Corporation | 1 | 12.5% | $1.3M | |
| 6 | IncredibleBank | 1 | 12.5% | $1.1M | |
| 7 | Hanover Community Bank | 1 | 12.5% | $525K |
States where Knights Inn units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wisconsin | 2 | 25.0% | $3.3M | |
| 2 | New Jersey | 1 | 12.5% | $3.8M | |
| 3 | Virginia | 1 | 12.5% | $1.6M | |
| 4 | South Carolina | 1 | 12.5% | $1.3M | |
| 5 | Texas | 1 | 12.5% | $1.3M | |
| 6 | Oregon | 1 | 12.5% | $871K | |
| 7 | Pennsylvania | 1 | 12.5% | $525K |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Knights Inn franchise?
The median SBA 7(a) loan for a Knights Inn resale was $1,274,400 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $1,061,500 to $1,708,750. 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 Knights Inn acquisitions?
United Midwest Savings Bank National Association has made the most SBA acquisition loans for Knights Inn (2, 25% of the total). Peapack Private Bank and Trust, GBank, The Huntington National Bank follow.
What interest rate and term do Knights Inn acquisition loans carry?
The average initial rate at approval was 6.41% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is a Knights Inn resale riskier than other SBA-financed acquisitions?
Too few Knights Inn 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 Knights Inn units being bought with SBA loans?
Wisconsin (2), New Jersey (1), Virginia (1), South Carolina (1), Texas (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.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Wisconsin acquisitions
- New Jersey acquisitions
- Virginia acquisitions
- United Midwest Savings Bank National Association
- Peapack Private Bank and Trust
- GBank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Knights Inn" (franchise code S0952). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.