Buying a PIP Center franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing PIP Center (classified mostly as Commercial Printing (except Screen and Books)), totaling $6M. The median loan was $379,000, 41% lower than the $645,250 median for all SBA-financed acquisitions. 5 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 PIP Center resale loans landed between $147,850 and $1,705,750.
- Lender experience exists. The Huntington National Bank alone has financed 2 PIP Center 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 PIP Center resale
The median SBA 7(a) loan for a PIP Center resale was $379,000 across 6 loans (FY2018 to FY2026). The Huntington National Bank, Live Oak Banking Company and Celtic Bank Corporation have financed the most PIP Center 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%.
PIP Center acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $418K | $418,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $84K | $83,800 | |
| FY2026 | 4 | $5.5M | $1,237,500 |
How often do these acquisition loans fail?
Fewer than 20 PIP Center 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 PIP Center resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 2 | 33.3% | $3.1M | |
| 2 | Live Oak Banking Company | 1 | 16.7% | $2.1M | |
| 3 | Celtic Bank Corporation | 1 | 16.7% | $418K | |
| 4 | Byline Bank | 1 | 16.7% | $340K | |
| 5 | Stock Yards Bank & Trust Company | 1 | 16.7% | $84K |
States where PIP Center units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Indiana | 3 | 50.0% | $3.4M | |
| 2 | New Jersey | 1 | 16.7% | $2.1M | |
| 3 | California | 1 | 16.7% | $418K | |
| 4 | Kentucky | 1 | 16.7% | $84K |
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify PIP Center
Lenders code each loan to a NAICS industry. For PIP Center the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Commercial Printing (except Screen and Books) | 4 | 66.7% | $3M | |
| 2 | Other Business Service Centers (including Copy Shops) | 2 | 33.3% | $3.1M |
Questions buyers ask
How much do buyers borrow to buy a PIP Center franchise?
The median SBA 7(a) loan for a PIP Center resale was $379,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $147,850 to $1,705,750. 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 PIP Center acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for PIP Center (2, 33% of the total). Live Oak Banking Company, Celtic Bank Corporation, Byline Bank follow.
What interest rate and term do PIP Center acquisition loans carry?
The average initial rate at approval was 8.08% (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 PIP Center resale riskier than other SBA-financed acquisitions?
Too few PIP Center 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 PIP Center units being bought with SBA loans?
Indiana (3), New Jersey (1), California (1), Kentucky (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.
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Related
- All Commercial Printing (except Screen and Books) acquisitions
- Indiana acquisitions
- New Jersey acquisitions
- California acquisitions
- The Huntington National Bank
- Live Oak Banking Company
- Celtic Bank Corporation
- All franchise brands
Brand name as recorded by lenders in the SBA file: "PIP Center" (franchise code S1242). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.