Buying a Kona Ice franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Kona Ice (classified mostly as Mobile Food Services), totaling $2.5M. The median loan was $375,000, 42% lower than the $645,250 median for all SBA-financed acquisitions. 5 of these loans were approved in the last two fiscal years.
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 Kona Ice resale loans landed between $279,000 and $568,500.
- Lender experience exists. Waterfall Bank alone has financed 1 Kona Ice resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Kona Ice resale
The median SBA 7(a) loan for a Kona Ice resale was $375,000 across 5 loans (FY2018 to FY2026). Waterfall Bank, Citizens Bank and Readycap Lending, LLC have financed the most Kona Ice 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%.
Kona Ice acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $279K | $279,000 | |
| FY2026 | 4 | $2.2M | $471,750 |
How often do these acquisition loans fail?
Fewer than 20 Kona Ice 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 Kona Ice resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Waterfall Bank | 1 | 20.0% | $1M | |
| 2 | Citizens Bank | 1 | 20.0% | $569K | |
| 3 | Readycap Lending, LLC | 1 | 20.0% | $375K | |
| 4 | DFCU Financial | 1 | 20.0% | $279K | |
| 5 | Lake Trust CU | 1 | 20.0% | $252K |
States where Kona Ice units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Michigan | 2 | 40.0% | $531K | |
| 2 | Florida | 1 | 20.0% | $1M | |
| 3 | North Carolina | 1 | 20.0% | $569K | |
| 4 | California | 1 | 20.0% | $375K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
How lenders classify Kona Ice
Lenders code each loan to a NAICS industry. For Kona Ice the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Mobile Food Services | 3 | 60.0% | $906K | |
| 2 | Snack and Nonalcoholic Beverage Bars | 2 | 40.0% | $1.6M |
Questions buyers ask
How much do buyers borrow to buy a Kona Ice franchise?
The median SBA 7(a) loan for a Kona Ice resale was $375,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $279,000 to $568,500. 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 Kona Ice acquisitions?
Waterfall Bank has made the most SBA acquisition loans for Kona Ice (1, 20% of the total). Citizens Bank, Readycap Lending, LLC, DFCU Financial follow.
What interest rate and term do Kona Ice acquisition loans carry?
The average initial rate at approval was 9.50% (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 Kona Ice resale riskier than other SBA-financed acquisitions?
Too few Kona Ice 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 Kona Ice units being bought with SBA loans?
Michigan (2), Florida (1), North Carolina (1), California (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 Mobile Food Services acquisitions
- Michigan acquisitions
- Florida acquisitions
- North Carolina acquisitions
- Citizens Bank
- Readycap Lending, LLC
- DFCU Financial
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Kona Ice" (franchise code S0957). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.