Buying a Sylvan Learning Centers franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 23 7(a) loans to buy an existing Sylvan Learning Centers (classified mostly as Exam Preparation and Tutoring), totaling $15M. The median loan was $350,000, 46% lower than the $645,250 median for all SBA-financed acquisitions. 5 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 Sylvan Learning Centers resale loans landed between $233,400 and $1,003,500.
- Lender experience exists. The Huntington National Bank alone has financed 3 Sylvan Learning Centers resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Sylvan Learning Centers resale
The median SBA 7(a) loan for a Sylvan Learning Centers resale was $350,000 across 23 loans (FY2018 to FY2026). The Huntington National Bank, Live Oak Banking Company and Wells Fargo Bank National Association have financed the most Sylvan Learning Centers 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%.
Sylvan Learning Centers acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $2.2M | $535,500 | |
| FY2019 | 4 | $1.9M | $368,750 | |
| FY2020 | 2 | $388K | $194,000 | |
| FY2021 | 2 | $1.5M | $750,900 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 6 | $3.1M | $292,050 | |
| FY2024 | 1 | $460K | $460,000 | |
| FY2025 | 2 | $1.8M | $920,000 | |
| FY2026 | 3 | $3.6M | $300,000 |
How often do these acquisition loans fail?
Fewer than 20 Sylvan Learning Centers 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 Sylvan Learning Centers resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 3 | 13.0% | $3.7M | |
| 2 | Live Oak Banking Company | 3 | 13.0% | $2.1M | |
| 3 | Wells Fargo Bank National Association | 2 | 8.7% | $1.7M | |
| 4 | Security Service FCU | 2 | 8.7% | $467K | |
| 5 | OakStar Bank | 2 | 8.7% | $178K | |
| 6 | Kendall Bank | 1 | 4.3% | $1.3M | |
| 7 | First National Bank of Coffee County | 1 | 4.3% | $1.1M | |
| 8 | Fifth Third Bank | 1 | 4.3% | $1M | |
| 9 | Coastal States Bank | 1 | 4.3% | $995K | |
| 10 | Bank of Ann Arbor | 1 | 4.3% | $600K |
States where Sylvan Learning Centers units are bought
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Sylvan Learning Centers
Lenders code each loan to a NAICS industry. For Sylvan Learning Centers the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Exam Preparation and Tutoring | 17 | 73.9% | $11.8M | |
| 2 | Educational Support Services | 6 | 26.1% | $3.2M |
Questions buyers ask
How much do buyers borrow to buy a Sylvan Learning Centers franchise?
The median SBA 7(a) loan for a Sylvan Learning Centers resale was $350,000 across 23 loans (FY2018 to FY2026). The middle half of loans ran from $233,400 to $1,003,500. 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 Sylvan Learning Centers acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for Sylvan Learning Centers (3, 13% of the total). Live Oak Banking Company, Wells Fargo Bank National Association, Security Service FCU follow.
What interest rate and term do Sylvan Learning Centers acquisition loans carry?
The average initial rate at approval was 8.34% (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 Sylvan Learning Centers resale riskier than other SBA-financed acquisitions?
Too few Sylvan Learning Centers 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 Sylvan Learning Centers units being bought with SBA loans?
Texas (7), Michigan (3), Missouri (3), Washington (2), Illinois (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.
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Related
- All Exam Preparation and Tutoring acquisitions
- Texas acquisitions
- Michigan acquisitions
- Missouri acquisitions
- The Huntington National Bank
- Live Oak Banking Company
- Wells Fargo Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Sylvan Learning Centers" (franchise code S1658). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.