Buying an OYO franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing OYO (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $11.1M. The median loan was $2,107,100, 227% 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 OYO resale loans landed between $1,117,050 and $2,565,250.
- Lender experience exists. Open Bank alone has financed 1 OYO resales.
- Guaranty. The SBA guaranteed 79% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing an OYO resale
The median SBA 7(a) loan for an OYO resale was $2,107,100 across 6 loans (FY2018 to FY2026). Open Bank, Metro City Bank and First Southern Bank have financed the most OYO 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%.
OYO acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $2.9M | $2,900,000 | |
| FY2021 | 1 | $2.6M | $2,620,000 | |
| FY2022 | 1 | $885K | $885,000 | |
| FY2023 | 1 | $1.8M | $1,813,200 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $2.9M | $1,446,500 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 OYO 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 OYO resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Open Bank | 1 | 16.7% | $2.9M | |
| 2 | Metro City Bank | 1 | 16.7% | $2.6M | |
| 3 | First Southern Bank | 1 | 16.7% | $2.4M | |
| 4 | GBank | 1 | 16.7% | $1.8M | |
| 5 | Mission Valley Bank | 1 | 16.7% | $885K | |
| 6 | US Metro Bank | 1 | 16.7% | $492K |
States where OYO units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Oregon | 2 | 33.3% | $3.8M | |
| 2 | Washington | 1 | 16.7% | $2.6M | |
| 3 | Georgia | 1 | 16.7% | $2.4M | |
| 4 | North Carolina | 1 | 16.7% | $1.8M | |
| 5 | Texas | 1 | 16.7% | $492K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Questions buyers ask
How much do buyers borrow to buy an OYO franchise?
The median SBA 7(a) loan for an OYO resale was $2,107,100 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $1,117,050 to $2,565,250. 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 OYO acquisitions?
Open Bank has made the most SBA acquisition loans for OYO (1, 17% of the total). Metro City Bank, First Southern Bank, GBank follow.
What interest rate and term do OYO acquisition loans carry?
The average initial rate at approval was 7.38% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is an OYO resale riskier than other SBA-financed acquisitions?
Too few OYO 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 OYO units being bought with SBA loans?
Oregon (2), Washington (1), Georgia (1), North Carolina (1), Texas (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 Hotels (except Casino Hotels) and Motels acquisitions
- Oregon acquisitions
- Washington acquisitions
- Georgia acquisitions
- Open Bank
- Metro City Bank
- GBank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "OYO - Marketing and Operational Consulting Agreement" (franchise code S4197). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.