Buying a Padgett Business Services franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Padgett Business Services (classified mostly as Tax Preparation Services), totaling $2.7M. The median loan was $412,500, 36% lower than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Padgett Business Services resale loans landed between $365,000 and $591,175.
- Lender experience exists. Town and Country CU alone has financed 2 Padgett Business Services 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 Padgett Business Services resale
The median SBA 7(a) loan for a Padgett Business Services resale was $412,500 across 6 loans (FY2018 to FY2026). Town and Country CU, Texas Capital Bank and United Midwest Savings Bank National Association have financed the most Padgett Business Services 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%.
Padgett Business Services acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $1000K | $499,950 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 2 | $825K | $412,500 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $875K | $437,500 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Padgett Business Services 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 Padgett Business Services resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Town and Country CU | 2 | 33.3% | $875K | |
| 2 | Texas Capital Bank | 1 | 16.7% | $650K | |
| 3 | United Midwest Savings Bank National Association | 1 | 16.7% | $415K | |
| 4 | BayFirst National Bank | 1 | 16.7% | $410K | |
| 5 | Truist Bank | 1 | 16.7% | $350K |
States where Padgett Business Services units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Dakota | 2 | 33.3% | $875K | |
| 2 | Texas | 1 | 16.7% | $650K | |
| 3 | Colorado | 1 | 16.7% | $415K | |
| 4 | Tennessee | 1 | 16.7% | $410K | |
| 5 | South Carolina | 1 | 16.7% | $350K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Padgett Business Services
Lenders code each loan to a NAICS industry. For Padgett Business Services the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Tax Preparation Services | 2 | 33.3% | $1.1M | |
| 2 | Offices of Certified Public Accountants | 2 | 33.3% | $515K | |
| 3 | Other Accounting Services | 1 | 16.7% | $775K | |
| 4 | Offices of Other Holding Companies | 1 | 16.7% | $350K |
Questions buyers ask
How much do buyers borrow to buy a Padgett Business Services franchise?
The median SBA 7(a) loan for a Padgett Business Services resale was $412,500 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $365,000 to $591,175. 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 Padgett Business Services acquisitions?
Town and Country CU has made the most SBA acquisition loans for Padgett Business Services (2, 33% of the total). Texas Capital Bank, United Midwest Savings Bank National Association, BayFirst National Bank follow.
What interest rate and term do Padgett Business Services acquisition loans carry?
The average initial rate at approval was 7.53% (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 Padgett Business Services resale riskier than other SBA-financed acquisitions?
Too few Padgett Business Services 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 Padgett Business Services units being bought with SBA loans?
North Dakota (2), Texas (1), Colorado (1), Tennessee (1), South Carolina (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 Tax Preparation Services acquisitions
- North Dakota acquisitions
- Texas acquisitions
- Colorado acquisitions
- Texas Capital Bank
- United Midwest Savings Bank National Association
- BayFirst National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Padgett Business Services" (franchise code S1263). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.