Buying a Maaco franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 27 7(a) loans to buy an existing Maaco (classified mostly as Automotive Body, Paint, and Interior Repair and Maintenance), totaling $29.1M. The median loan was $537,200, 17% lower than the $645,250 median for all SBA-financed acquisitions. 7 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Maaco resale loans landed between $350,000 and $1,472,500.
- Lender experience exists. Live Oak Banking Company alone has financed 4 Maaco 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 Maaco resale
The median SBA 7(a) loan for a Maaco resale was $537,200 across 27 loans (FY2018 to FY2026). Live Oak Banking Company, The Huntington National Bank and First Bank have financed the most Maaco 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%.
Maaco acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $3.9M | $295,500 | |
| FY2019 | 3 | $6.4M | $1,250,000 | |
| FY2020 | 4 | $2.2M | $422,500 | |
| FY2021 | 2 | $2.6M | $1,294,500 | |
| FY2022 | 1 | $388K | $388,300 | |
| FY2023 | 1 | $3.4M | $3,420,000 | |
| FY2024 | 3 | $1.5M | $537,200 | |
| FY2025 | 2 | $3.7M | $1,868,000 | |
| FY2026 | 5 | $4.9M | $1,000,000 |
How often do these acquisition loans fail?
Fewer than 20 Maaco 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 Maaco resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | 14.8% | $5.7M | |
| 2 | The Huntington National Bank | 3 | 11.1% | $878K | |
| 3 | First Bank | 2 | 7.4% | $3M | |
| 4 | First Internet Bank of Indiana | 2 | 7.4% | $470K | |
| 5 | Celtic Bank Corporation | 1 | 3.7% | $5M | |
| 6 | TD Bank, National Association | 1 | 3.7% | $3.4M | |
| 7 | VelocitySBA, LLC | 1 | 3.7% | $1.7M | |
| 8 | Integro Bank | 1 | 3.7% | $1.7M | |
| 9 | Santander Bank, National Association | 1 | 3.7% | $1.3M | |
| 10 | ConnectOne Bank | 1 | 3.7% | $1M |
States where Maaco units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Jersey | 5 | 18.5% | $7.8M | |
| 2 | California | 3 | 11.1% | $3.3M | |
| 3 | Texas | 3 | 11.1% | $2.3M | |
| 4 | Arizona | 2 | 7.4% | $3.4M | |
| 5 | Tennessee | 2 | 7.4% | $637K | |
| 6 | Maryland | 2 | 7.4% | $470K | |
| 7 | Nevada | 1 | 3.7% | $5M | |
| 8 | Ohio | 1 | 3.7% | $1.7M | |
| 9 | Massachusetts | 1 | 3.7% | $1.3M | |
| 10 | Washington | 1 | 3.7% | $862K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Maaco
Lenders code each loan to a NAICS industry. For Maaco the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Automotive Body, Paint, and Interior Repair and Maintenance | 25 | 92.6% | $26.8M | |
| 2 | General Automotive Repair | 1 | 3.7% | $1.1M |
Questions buyers ask
How much do buyers borrow to buy a Maaco franchise?
The median SBA 7(a) loan for a Maaco resale was $537,200 across 27 loans (FY2018 to FY2026). The middle half of loans ran from $350,000 to $1,472,500. 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 Maaco acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Maaco (4, 15% of the total). The Huntington National Bank, First Bank, First Internet Bank of Indiana follow.
What interest rate and term do Maaco acquisition loans carry?
The average initial rate at approval was 7.72% (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 Maaco resale riskier than other SBA-financed acquisitions?
Too few Maaco 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 Maaco units being bought with SBA loans?
New Jersey (5), California (3), Texas (3), Arizona (2), Tennessee (2). 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 Automotive Body, Paint, and Interior Repair and Maintenance acquisitions
- New Jersey acquisitions
- California acquisitions
- Texas acquisitions
- Live Oak Banking Company
- The Huntington National Bank
- First Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Maaco" (franchise code S1063). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.