Buying a NAPA AutoCare franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 16 7(a) loans to buy an existing NAPA AutoCare (classified mostly as General Automotive Repair), totaling $13.4M. The median loan was $838,350, 30% higher than the $645,250 median for all SBA-financed acquisitions. 2 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 NAPA AutoCare resale loans landed between $499,375 and $1,204,050.
- Lender experience exists. The Huntington National Bank alone has financed 2 NAPA AutoCare resales.
- Guaranty. The SBA guaranteed 80% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a NAPA AutoCare resale
The median SBA 7(a) loan for a NAPA AutoCare resale was $838,350 across 16 loans (FY2018 to FY2026). The Huntington National Bank, Security Bank USA and Live Oak Banking Company have financed the most NAPA AutoCare 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%.
NAPA AutoCare acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 3 | $1.7M | $564,300 | |
| FY2020 | 2 | $570K | $284,750 | |
| FY2021 | 5 | $4.9M | $933,700 | |
| FY2022 | 3 | $1.8M | $743,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $1.5M | $1,480,000 | |
| FY2025 | 2 | $2.9M | $1,468,500 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 NAPA AutoCare 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 NAPA AutoCare resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 2 | 12.5% | $1.7M | |
| 2 | Security Bank USA | 2 | 12.5% | $1.1M | |
| 3 | Live Oak Banking Company | 2 | 12.5% | $1.1M | |
| 4 | Citizens State Bank of New Castle | 1 | 6.3% | $1.7M | |
| 5 | Central Savings Bank | 1 | 6.3% | $1.5M | |
| 6 | Gulf Coast Bank and Trust Company | 1 | 6.3% | $1.5M | |
| 7 | TD Bank, National Association | 1 | 6.3% | $1.2M | |
| 8 | Century Bank and Trust | 1 | 6.3% | $1.2M | |
| 9 | Manufacturers and Traders Trust Company | 1 | 6.3% | $621K | |
| 10 | Customers Bank | 1 | 6.3% | $564K |
States where NAPA AutoCare units are bought
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify NAPA AutoCare
Lenders code each loan to a NAICS industry. For NAPA AutoCare the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | General Automotive Repair | 7 | 43.8% | $5M | |
| 2 | Automotive Parts and Accessories Stores | 5 | 31.3% | $4.6M | |
| 3 | Automotive Parts and Accessories Retailers | 2 | 12.5% | $2.7M | |
| 4 | Gasoline Stations with Convenience Stores | 2 | 12.5% | $1.1M |
Questions buyers ask
How much do buyers borrow to buy a NAPA AutoCare franchise?
The median SBA 7(a) loan for a NAPA AutoCare resale was $838,350 across 16 loans (FY2018 to FY2026). The middle half of loans ran from $499,375 to $1,204,050. 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 NAPA AutoCare acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for NAPA AutoCare (2, 13% of the total). Security Bank USA, Live Oak Banking Company, Citizens State Bank of New Castle follow.
What interest rate and term do NAPA AutoCare acquisition loans carry?
The average initial rate at approval was 6.53% (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 NAPA AutoCare resale riskier than other SBA-financed acquisitions?
Too few NAPA AutoCare 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 NAPA AutoCare units being bought with SBA loans?
Arizona (3), Minnesota (3), Michigan (2), Indiana (1), Colorado (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All General Automotive Repair acquisitions
- Arizona acquisitions
- Minnesota acquisitions
- Michigan acquisitions
- The Huntington National Bank
- Live Oak Banking Company
- Gulf Coast Bank and Trust Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Napa AutoCare Program Membership Agreement" (franchise code S3038). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.