Buying a Signarama franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 26 7(a) loans to buy an existing Signarama (classified mostly as Sign Manufacturing), totaling $14.6M. The median loan was $404,000, 37% lower than the $645,250 median for all SBA-financed acquisitions. 6 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Signarama resale loans landed between $183,625 and $755,350.
- Lender experience exists. United Community Bank alone has financed 4 Signarama resales.
- Guaranty. The SBA guaranteed 73% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Signarama resale
The median SBA 7(a) loan for a Signarama resale was $404,000 across 26 loans (FY2018 to FY2026). United Community Bank, Stearns Bank National Association and CIBC Bank USA have financed the most Signarama 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%.
Signarama acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $3M | $235,000 | |
| FY2019 | 4 | $2.2M | $590,000 | |
| FY2020 | 6 | $4.1M | $424,800 | |
| FY2021 | 4 | $1.5M | $309,750 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 3 | $1.6M | $513,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $785K | $392,500 | |
| FY2026 | 4 | $1.5M | $306,500 |
How often do these acquisition loans fail?
Fewer than 20 Signarama 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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Signarama resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | United Community Bank | 4 | 15.4% | $3.7M | |
| 2 | Stearns Bank National Association | 2 | 7.7% | $1.2M | |
| 3 | CIBC Bank USA | 2 | 7.7% | $945K | |
| 4 | Western Alliance Bank | 2 | 7.7% | $657K | |
| 5 | Schaumburg Bank & Trust Company, National Association | 2 | 7.7% | $478K | |
| 6 | Fifth Third Bank | 2 | 7.7% | $428K | |
| 7 | North State Bank | 1 | 3.8% | $2.3M | |
| 8 | Happen Bank | 1 | 3.8% | $861K | |
| 9 | Mechanics and Farmers Bank | 1 | 3.8% | $800K | |
| 10 | SouthState Bank, National Association | 1 | 3.8% | $686K |
States where Signarama units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 7 | 26.9% | $2.7M | |
| 2 | Georgia | 4 | 15.4% | $3.6M | |
| 3 | Arizona | 4 | 15.4% | $1.4M | |
| 4 | South Carolina | 2 | 7.7% | $2.7M | |
| 5 | Colorado | 2 | 7.7% | $1.2M | |
| 6 | California | 1 | 3.8% | $935K | |
| 7 | Kentucky | 1 | 3.8% | $800K | |
| 8 | Pennsylvania | 1 | 3.8% | $445K | |
| 9 | Minnesota | 1 | 3.8% | $250K | |
| 10 | New York | 1 | 3.8% | $250K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
How lenders classify Signarama
Lenders code each loan to a NAICS industry. For Signarama the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Sign Manufacturing | 21 | 80.8% | $12.9M | |
| 2 | Other Services Related to Advertising | 1 | 3.8% | $861K | |
| 3 | Graphic Design Services | 1 | 3.8% | $450K | |
| 4 | All Other Miscellaneous Retailers | 1 | 3.8% | $167K |
Questions buyers ask
How much do buyers borrow to buy a Signarama franchise?
The median SBA 7(a) loan for a Signarama resale was $404,000 across 26 loans (FY2018 to FY2026). The middle half of loans ran from $183,625 to $755,350. 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 Signarama acquisitions?
United Community Bank has made the most SBA acquisition loans for Signarama (4, 15% of the total). Stearns Bank National Association, CIBC Bank USA, Western Alliance Bank follow.
What interest rate and term do Signarama acquisition loans carry?
The average initial rate at approval was 7.50% (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 Signarama resale riskier than other SBA-financed acquisitions?
Too few Signarama 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 Signarama units being bought with SBA loans?
Illinois (7), Georgia (4), Arizona (4), South Carolina (2), Colorado (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.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Sign Manufacturing acquisitions
- Illinois acquisitions
- Georgia acquisitions
- Arizona acquisitions
- United Community Bank
- Stearns Bank National Association
- CIBC Bank USA
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Signarama" (franchise code S1570). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.