Buying a Signs by Tomorrow franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing Signs by Tomorrow (classified mostly as Sign Manufacturing), totaling $4M. The median loan was $422,200, 35% lower than the $645,250 median for all SBA-financed acquisitions.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Signs by Tomorrow resale loans landed between $290,425 and $580,750.
- Lender experience exists. TD Bank, National Association alone has financed 2 Signs by Tomorrow resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Signs by Tomorrow resale
The median SBA 7(a) loan for a Signs by Tomorrow resale was $422,200 across 10 loans (FY2018 to FY2026). TD Bank, National Association, Glacier Bank and Live Oak Banking Company have financed the most Signs by Tomorrow 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%.
Signs by Tomorrow acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 4 | $1.5M | $411,200 | |
| FY2020 | 2 | $431K | $215,500 | |
| FY2021 | 2 | $822K | $410,950 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $655K | $655,000 | |
| FY2024 | 1 | $630K | $630,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Signs by Tomorrow 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Lenders financing Signs by Tomorrow resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | TD Bank, National Association | 2 | 20.0% | $660K | |
| 2 | Glacier Bank | 2 | 20.0% | $431K | |
| 3 | Live Oak Banking Company | 1 | 10.0% | $655K | |
| 4 | Beacon Bank and Trust | 1 | 10.0% | $630K | |
| 5 | Wings Credit Union | 1 | 10.0% | $568K | |
| 6 | Harborstone CU | 1 | 10.0% | $423K | |
| 7 | Celtic Bank Corporation | 1 | 10.0% | $399K | |
| 8 | The Huntington National Bank | 1 | 10.0% | $254K |
States where Signs by Tomorrow units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Jersey | 2 | 20.0% | $660K | |
| 2 | Idaho | 2 | 20.0% | $431K | |
| 3 | Massachusetts | 1 | 10.0% | $655K | |
| 4 | Georgia | 1 | 10.0% | $630K | |
| 5 | Wisconsin | 1 | 10.0% | $568K | |
| 6 | Washington | 1 | 10.0% | $423K | |
| 7 | Florida | 1 | 10.0% | $399K | |
| 8 | Michigan | 1 | 10.0% | $254K |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
How lenders classify Signs by Tomorrow
Lenders code each loan to a NAICS industry. For Signs by Tomorrow the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Sign Manufacturing | 6 | 60.0% | $2.5M | |
| 2 | Commercial Printing (except Screen and Books) | 2 | 20.0% | $431K | |
| 3 | All Other Miscellaneous Retailers | 1 | 10.0% | $655K | |
| 4 | Advertising Agencies | 1 | 10.0% | $399K |
Questions buyers ask
How much do buyers borrow to buy a Signs by Tomorrow franchise?
The median SBA 7(a) loan for a Signs by Tomorrow resale was $422,200 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $290,425 to $580,750. 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 Signs by Tomorrow acquisitions?
TD Bank, National Association has made the most SBA acquisition loans for Signs by Tomorrow (2, 20% of the total). Glacier Bank, Live Oak Banking Company, Beacon Bank and Trust follow.
What interest rate and term do Signs by Tomorrow acquisition loans carry?
The average initial rate at approval was 7.33% (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 Signs by Tomorrow resale riskier than other SBA-financed acquisitions?
Too few Signs by Tomorrow 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 Signs by Tomorrow units being bought with SBA loans?
New Jersey (2), Idaho (2), Massachusetts (1), Georgia (1), Wisconsin (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Sign Manufacturing acquisitions
- New Jersey acquisitions
- Idaho acquisitions
- Massachusetts acquisitions
- TD Bank, National Association
- Glacier Bank
- Live Oak Banking Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Signs by Tomorrow" (franchise code S1572). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.