Buying a Right at Home franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 44 7(a) loans to buy an existing Right at Home (classified mostly as Home Health Care Services), totaling $36.6M. The median loan was $638,500, in line with the $645,250 median for all SBA-financed acquisitions. 10 of these loans were approved in the last two fiscal years.
Financing one? Read the guide: How to get an SBA loan to buy a home care franchise
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Right at Home resale loans landed between $337,500 and $1,129,125.
- Lender experience exists. Live Oak Banking Company alone has financed 24 Right at Home 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 Right at Home resale
The median SBA 7(a) loan for a Right at Home resale was $638,500 across 44 loans (FY2018 to FY2026). Live Oak Banking Company, Associated Bank National Association and Truist Bank have financed the most Right at Home resales. Of 26 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Right at Home acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $2M | $418,400 | |
| FY2019 | 8 | $5.5M | $449,500 | |
| FY2020 | 3 | $2.4M | $590,000 | |
| FY2021 | 12 | $13.4M | $842,000 | |
| FY2022 | 4 | $3M | $766,000 | |
| FY2023 | 2 | $1.5M | $730,000 | |
| FY2024 | 2 | $1.4M | $697,500 | |
| FY2025 | 7 | $3.7M | $425,000 | |
| FY2026 | 3 | $3.8M | $690,000 |
How often do these acquisition loans fail?
Of the 26 Right at Home acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 10 have already been paid in full.
For comparison, Right at Home has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Right at Home resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 24 | 54.5% | $19.4M | |
| 2 | Associated Bank National Association | 3 | 6.8% | $2.4M | |
| 3 | Truist Bank | 2 | 4.5% | $3.7M | |
| 4 | MVB Bank, Inc. | 2 | 4.5% | $1.8M | |
| 5 | First Horizon Bank | 1 | 2.3% | $1.5M | |
| 6 | The Bank of Houston | 1 | 2.3% | $1.3M | |
| 7 | Stearns Bank National Association | 1 | 2.3% | $1.2M | |
| 8 | Pathward National Association | 1 | 2.3% | $950K | |
| 9 | Beacon Bank and Trust | 1 | 2.3% | $865K | |
| 10 | The Bancorp Bank National Association | 1 | 2.3% | $590K |
States where Right at Home units are bought
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How lenders classify Right at Home
Lenders code each loan to a NAICS industry. For Right at Home the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Home Health Care Services | 39 | 88.6% | $32.8M | |
| 2 | Services for the Elderly and Persons with Disabilities | 3 | 6.8% | $1.9M | |
| 3 | All Other Personal Services | 1 | 2.3% | $1.3M | |
| 4 | All Other Miscellaneous Schools and Instruction | 1 | 2.3% | $667K |
Questions buyers ask
How much do buyers borrow to buy a Right at Home franchise?
The median SBA 7(a) loan for a Right at Home resale was $638,500 across 44 loans (FY2018 to FY2026). The middle half of loans ran from $337,500 to $1,129,125. 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 Right at Home acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Right at Home (24, 55% of the total). Associated Bank National Association, Truist Bank, MVB Bank, Inc. follow.
What interest rate and term do Right at Home acquisition loans carry?
The average initial rate at approval was 7.05% (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 Right at Home resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), none charged off, against the 3.5% average for all SBA acquisition loans.
Where are Right at Home units being bought with SBA loans?
California (15), Florida (5), Illinois (3), Michigan (3), Texas (3). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Related
- All Home Health Care Services acquisitions
- California acquisitions
- Florida acquisitions
- Illinois acquisitions
- Live Oak Banking Company
- Associated Bank National Association
- Truist Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Right at Home" (franchise code S1431). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.