Buying a Liberty Tax Service franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Liberty Tax Service (classified mostly as Tax Preparation Services), totaling $3.3M. The median loan was $472,750, 27% lower than the $645,250 median for all SBA-financed acquisitions. 2 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 Liberty Tax Service resale loans landed between $232,500 and $697,475.
- Lender experience exists. First Bank alone has financed 2 Liberty Tax Service resales.
- Guaranty. The SBA guaranteed 74% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Liberty Tax Service resale
The median SBA 7(a) loan for a Liberty Tax Service resale was $472,750 across 6 loans (FY2018 to FY2026). First Bank, Old National Bank and United Midwest Savings Bank National Association have financed the most Liberty Tax Service 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%.
Liberty Tax Service acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $1.5M | $741,250 | |
| FY2019 | 2 | $857K | $428,650 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 2 | $946K | $472,750 |
How often do these acquisition loans fail?
Fewer than 20 Liberty Tax Service 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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Liberty Tax Service resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First Bank | 2 | 33.3% | $1.5M | |
| 2 | Old National Bank | 2 | 33.3% | $857K | |
| 3 | United Midwest Savings Bank National Association | 1 | 16.7% | $473K | |
| 4 | BayFirst National Bank | 1 | 16.7% | $473K |
States where Liberty Tax Service units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 2 | 33.3% | $857K | |
| 2 | Washington | 1 | 16.7% | $1.3M | |
| 3 | Tennessee | 1 | 16.7% | $473K | |
| 4 | North Carolina | 1 | 16.7% | $473K | |
| 5 | Maryland | 1 | 16.7% | $153K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a Liberty Tax Service franchise?
The median SBA 7(a) loan for a Liberty Tax Service resale was $472,750 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $232,500 to $697,475. 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 Liberty Tax Service acquisitions?
First Bank has made the most SBA acquisition loans for Liberty Tax Service (2, 33% of the total). Old National Bank, United Midwest Savings Bank National Association, BayFirst National Bank follow.
What interest rate and term do Liberty Tax Service acquisition loans carry?
The average initial rate at approval was 7.45% (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 Liberty Tax Service resale riskier than other SBA-financed acquisitions?
Too few Liberty Tax Service 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 Liberty Tax Service units being bought with SBA loans?
Minnesota (2), Washington (1), Tennessee (1), North Carolina (1), Maryland (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 Tax Preparation Services acquisitions
- Minnesota acquisitions
- Washington acquisitions
- Tennessee acquisitions
- First Bank
- Old National Bank
- United Midwest Savings Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Liberty Tax Service" (franchise code S1005). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.