Buying a Rainbow Restoration franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 17 7(a) loans to buy an existing Rainbow Restoration (classified mostly as All Other Specialty Trade Contractors), totaling $5.7M. The median loan was $335,000, 48% lower than the $645,250 median for all SBA-financed acquisitions.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Rainbow Restoration resale loans landed between $150,000 and $418,000.
- Lender experience exists. Live Oak Banking Company alone has financed 10 Rainbow Restoration 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 Rainbow Restoration resale
The median SBA 7(a) loan for a Rainbow Restoration resale was $335,000 across 17 loans (FY2018 to FY2026). Live Oak Banking Company, Wells Fargo Bank National Association and The First National Bank in Sioux Falls have financed the most Rainbow Restoration 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%.
Rainbow Restoration acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $1.1M | $1,074,000 | |
| FY2019 | 1 | $225K | $225,000 | |
| FY2020 | 5 | $1.7M | $350,000 | |
| FY2021 | 6 | $1.6M | $242,500 | |
| FY2022 | 3 | $675K | $250,000 | |
| FY2023 | 1 | $480K | $480,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Rainbow Restoration 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 Rainbow Restoration resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 10 | 58.8% | $2.5M | |
| 2 | Wells Fargo Bank National Association | 1 | 5.9% | $1.1M | |
| 3 | The First National Bank in Sioux Falls | 1 | 5.9% | $480K | |
| 4 | First Mid Bank & Trust, National Association | 1 | 5.9% | $470K | |
| 5 | CRF Small Business Loan Company, LLC | 1 | 5.9% | $350K | |
| 6 | United Bank of Union | 1 | 5.9% | $350K | |
| 7 | Fifth Third Bank | 1 | 5.9% | $315K | |
| 8 | German American Bank | 1 | 5.9% | $225K |
States where Rainbow Restoration units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 3 | 17.6% | $1.6M | |
| 2 | California | 2 | 11.8% | $625K | |
| 3 | Virginia | 2 | 11.8% | $530K | |
| 4 | Alabama | 2 | 11.8% | $410K | |
| 5 | West Virginia | 2 | 11.8% | $325K | |
| 6 | South Dakota | 1 | 5.9% | $480K | |
| 7 | Iowa | 1 | 5.9% | $470K | |
| 8 | Illinois | 1 | 5.9% | $350K | |
| 9 | Missouri | 1 | 5.9% | $350K | |
| 10 | Ohio | 1 | 5.9% | $315K |
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Rainbow Restoration
Lenders code each loan to a NAICS industry. For Rainbow Restoration the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | All Other Specialty Trade Contractors | 3 | 17.6% | $1.7M | |
| 2 | Residential Remodelers | 3 | 17.6% | $1M | |
| 3 | Other Personal and Household Goods Repair and Maintenance | 3 | 17.6% | $675K | |
| 4 | Remediation Services | 3 | 17.6% | $635K | |
| 5 | All Other Professional, Scientific, and Technical Services | 2 | 11.8% | $530K |
Questions buyers ask
How much do buyers borrow to buy a Rainbow Restoration franchise?
The median SBA 7(a) loan for a Rainbow Restoration resale was $335,000 across 17 loans (FY2018 to FY2026). The middle half of loans ran from $150,000 to $418,000. 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 Rainbow Restoration acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Rainbow Restoration (10, 59% of the total). Wells Fargo Bank National Association, The First National Bank in Sioux Falls, First Mid Bank & Trust, National Association follow.
What interest rate and term do Rainbow Restoration acquisition loans carry?
The average initial rate at approval was 6.24% (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 Rainbow Restoration resale riskier than other SBA-financed acquisitions?
Too few Rainbow Restoration 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 Rainbow Restoration units being bought with SBA loans?
Texas (3), California (2), Virginia (2), Alabama (2), West Virginia (2). 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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All All Other Specialty Trade Contractors acquisitions
- Texas acquisitions
- California acquisitions
- Virginia acquisitions
- Live Oak Banking Company
- Wells Fargo Bank National Association
- First Mid Bank & Trust, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Rainbow Restoration" (franchise code S1395). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.