Buying a LINE-X franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing LINE-X (classified mostly as Automotive Parts and Accessories Stores), totaling $11.5M. The median loan was $554,600, 14% 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 LINE-X resale loans landed between $393,275 and $920,525.
- Lender experience exists. Live Oak Banking Company alone has financed 3 LINE-X 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 a LINE-X resale
The median SBA 7(a) loan for a LINE-X resale was $554,600 across 12 loans (FY2018 to FY2026). Live Oak Banking Company, SouthStar Bank, S.S.B. and Truist Bank have financed the most LINE-X 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%.
LINE-X acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $823K | $411,500 | |
| FY2019 | 4 | $2.4M | $491,100 | |
| FY2020 | 2 | $3.3M | $1,663,800 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 2 | $3.9M | $1,972,600 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 2 | $1M | $514,250 |
How often do these acquisition loans fail?
Fewer than 20 LINE-X 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 LINE-X resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 3 | 25.0% | $4.6M | |
| 2 | SouthStar Bank, S.S.B. | 1 | 8.3% | $2.4M | |
| 3 | Truist Bank | 1 | 8.3% | $1M | |
| 4 | PNC Bank, National Association | 1 | 8.3% | $885K | |
| 5 | First Merchants Bank | 1 | 8.3% | $562K | |
| 6 | iTHINK Financial Credit Union | 1 | 8.3% | $547K | |
| 7 | First Interstate Bank | 1 | 8.3% | $420K | |
| 8 | American Momentum Bank | 1 | 8.3% | $398K | |
| 9 | Simmons Bank | 1 | 8.3% | $345K | |
| 10 | Evolve Bank and Trust | 1 | 8.3% | $276K |
States where LINE-X units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 2 | 16.7% | $2.8M | |
| 2 | Colorado | 2 | 16.7% | $1.3M | |
| 3 | Arizona | 2 | 16.7% | $1M | |
| 4 | Florida | 2 | 16.7% | $823K | |
| 5 | New Hampshire | 1 | 8.3% | $3.6M | |
| 6 | Kentucky | 1 | 8.3% | $1M | |
| 7 | Washington | 1 | 8.3% | $562K | |
| 8 | Arkansas | 1 | 8.3% | $345K |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify LINE-X
Lenders code each loan to a NAICS industry. For LINE-X the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Automotive Parts and Accessories Stores | 6 | 50.0% | $3M | |
| 2 | Automotive Body, Paint, and Interior Repair and Maintenance | 3 | 25.0% | $1.9M | |
| 3 | Automotive Parts and Accessories Retailers | 1 | 8.3% | $3.6M |
Questions buyers ask
How much do buyers borrow to buy a LINE-X franchise?
The median SBA 7(a) loan for a LINE-X resale was $554,600 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $393,275 to $920,525. 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 LINE-X acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for LINE-X (3, 25% of the total). SouthStar Bank, S.S.B., Truist Bank, PNC Bank, National Association follow.
What interest rate and term do LINE-X acquisition loans carry?
The average initial rate at approval was 6.59% (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 LINE-X resale riskier than other SBA-financed acquisitions?
Too few LINE-X 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 LINE-X units being bought with SBA loans?
Texas (2), Colorado (2), Arizona (2), Florida (2), New Hampshire (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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Automotive Parts and Accessories Stores acquisitions
- Texas acquisitions
- Colorado acquisitions
- Arizona acquisitions
- Live Oak Banking Company
- Truist Bank
- PNC Bank, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "LINE-X" (franchise code S0974). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.