Buying a Scottish Inns franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Scottish Inns (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $5.7M. The median loan was $872,000, 35% higher than the $645,250 median for all SBA-financed acquisitions. 2 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 Scottish Inns resale loans landed between $740,000 and $1,260,000.
- Lender experience exists. GBank alone has financed 2 Scottish Inns resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Scottish Inns resale
The median SBA 7(a) loan for a Scottish Inns resale was $872,000 across 5 loans (FY2018 to FY2026). GBank, Texas Gulf Bank National Association and Bank of Hope have financed the most Scottish Inns 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%.
Scottish Inns acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $740K | $740,000 | |
| FY2021 | 1 | $2.3M | $2,285,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $872K | $872,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $1.3M | $1,260,000 | |
| FY2026 | 1 | $550K | $550,000 |
How often do these acquisition loans fail?
Fewer than 20 Scottish Inns 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 Scottish Inns resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 2 | 40.0% | $1.6M | |
| 2 | Texas Gulf Bank National Association | 1 | 20.0% | $2.3M | |
| 3 | Bank of Hope | 1 | 20.0% | $1.3M | |
| 4 | US Metro Bank | 1 | 20.0% | $550K |
States where Scottish Inns units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Georgia | 2 | 40.0% | $2M | |
| 2 | Texas | 1 | 20.0% | $2.3M | |
| 3 | North Carolina | 1 | 20.0% | $872K | |
| 4 | Virginia | 1 | 20.0% | $550K |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Scottish Inns franchise?
The median SBA 7(a) loan for a Scottish Inns resale was $872,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $740,000 to $1,260,000. 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 Scottish Inns acquisitions?
GBank has made the most SBA acquisition loans for Scottish Inns (2, 40% of the total). Texas Gulf Bank National Association, Bank of Hope, US Metro Bank follow.
What interest rate and term do Scottish Inns acquisition loans carry?
The average initial rate at approval was 7.55% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is a Scottish Inns resale riskier than other SBA-financed acquisitions?
Too few Scottish Inns 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 Scottish Inns units being bought with SBA loans?
Georgia (2), Texas (1), North Carolina (1), Virginia (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 Hotels (except Casino Hotels) and Motels acquisitions
- Georgia acquisitions
- Texas acquisitions
- North Carolina acquisitions
- GBank
- Bank of Hope
- US Metro Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Scottish Inns/Scottish Suites/Scottish Inns & Suites" (franchise code S1535). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.