Polaris resales: SBA acquisition loan data
Since FY2018, SBA lenders have approved 9 7(a) loans to buy an existing business operating under a Polaris brand or supply agreement (classified mostly as Motorcycle, ATV, and All Other Motor Vehicle Dealers), totaling $17M. The median loan was $2,134,800, 231% higher 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 Polaris resale loans landed between $921,500 and $2,422,000.
- Lender experience exists. Lake City Bank alone has financed 2 Polaris resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record the terms of the brand or supply agreement.
Financing a Polaris resale
The median SBA 7(a) loan for a Polaris resale was $2,134,800 across 9 loans (FY2018 to FY2026). Lake City Bank, Farmers & Merchants Bank & Trust and Banc of California have financed the most Polaris 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%.
Polaris acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $2.9M | $1,457,750 | |
| FY2019 | 1 | $2.1M | $2,134,800 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 4 | $5.1M | $1,309,600 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $6.8M | $3,394,500 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Polaris 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 Polaris resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Lake City Bank | 2 | 22.2% | $365K | |
| 2 | Farmers & Merchants Bank & Trust | 1 | 11.1% | $3.6M | |
| 3 | Banc of California | 1 | 11.1% | $3.2M | |
| 4 | Nicolet National Bank | 1 | 11.1% | $2.4M | |
| 5 | Texas Capital Bank | 1 | 11.1% | $2.4M | |
| 6 | IncredibleBank | 1 | 11.1% | $2.1M | |
| 7 | Pinnacle Bank | 1 | 11.1% | $2M | |
| 8 | Valley National Bank | 1 | 11.1% | $922K |
States where Polaris units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wisconsin | 3 | 33.3% | $8.2M | |
| 2 | Texas | 2 | 22.2% | $5.5M | |
| 3 | Indiana | 2 | 22.2% | $365K | |
| 4 | North Carolina | 1 | 11.1% | $2M | |
| 5 | Florida | 1 | 11.1% | $922K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Polaris
Lenders code each loan to a NAICS industry. For Polaris the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motorcycle, ATV, and All Other Motor Vehicle Dealers | 5 | 55.6% | $6.9M | |
| 2 | Recreational Vehicle Dealers | 3 | 33.3% | $7.7M | |
| 3 | Boat Dealers | 1 | 11.1% | $2.4M |
Questions buyers ask
How much do buyers borrow to buy a business operating under a Polaris brand or supply agreement?
The median SBA 7(a) loan for a Polaris resale was $2,134,800 across 9 loans (FY2018 to FY2026). The middle half of loans ran from $921,500 to $2,422,000. 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 Polaris acquisitions?
Lake City Bank has made the most SBA acquisition loans for Polaris (2, 22% of the total). Farmers & Merchants Bank & Trust, Banc of California, Nicolet National Bank follow.
What interest rate and term do Polaris acquisition loans carry?
The average initial rate at approval was 5.83% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 14.8 years.
Is a Polaris resale riskier than other SBA-financed acquisitions?
Too few Polaris 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 Polaris units being bought with SBA loans?
Wisconsin (3), Texas (2), Indiana (2), North Carolina (1), Florida (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Motorcycle, ATV, and All Other Motor Vehicle Dealers acquisitions
- Wisconsin acquisitions
- Texas acquisitions
- Indiana acquisitions
- Lake City Bank
- Banc of California
- Nicolet National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Polaris - Dealer Agreement" (franchise code S1329). Figures are aggregates of public SBA data and are not provided or endorsed by the brand owner or supplier.