Buying a Cleaning Authority franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Cleaning Authority (classified mostly as Janitorial Services), totaling $6.8M. The median loan was $519,950, 19% lower than the $645,250 median for all SBA-financed acquisitions. 2 of these loans were approved in the last two fiscal years.
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 The Cleaning Authority resale loans landed between $307,500 and $688,750.
- Lender experience exists. Midwest Regional Bank alone has financed 1 The Cleaning Authority resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Cleaning Authority resale
The median SBA 7(a) loan for a Cleaning Authority resale was $519,950 across 12 loans (FY2018 to FY2026). Midwest Regional Bank, Washington Trust Bank and CIBC Bank USA have financed the most The Cleaning Authority 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%.
The Cleaning Authority acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $421K | $210,500 | |
| FY2019 | 1 | $545K | $545,300 | |
| FY2020 | 2 | $948K | $474,000 | |
| FY2021 | 1 | $1.1M | $1,115,000 | |
| FY2022 | 1 | $1.3M | $1,336,000 | |
| FY2023 | 3 | $1.4M | $494,600 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $344K | $343,800 | |
| FY2026 | 1 | $650K | $650,000 |
How often do these acquisition loans fail?
Fewer than 20 The Cleaning Authority 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.
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Lenders financing The Cleaning Authority resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Midwest Regional Bank | 1 | 8.3% | $1.3M | |
| 2 | Washington Trust Bank | 1 | 8.3% | $1.1M | |
| 3 | CIBC Bank USA | 1 | 8.3% | $733K | |
| 4 | Newtek Small Business Finance, LLC | 1 | 8.3% | $674K | |
| 5 | Live Oak Banking Company | 1 | 8.3% | $650K | |
| 6 | Wells Fargo Bank National Association | 1 | 8.3% | $545K | |
| 7 | First Bank | 1 | 8.3% | $495K | |
| 8 | Central Bank | 1 | 8.3% | $344K | |
| 9 | The Huntington National Bank | 1 | 8.3% | $320K | |
| 10 | Truist Bank | 1 | 8.3% | $270K |
States where The Cleaning Authority units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 2 | 16.7% | $1.3M | |
| 2 | North Carolina | 2 | 16.7% | $765K | |
| 3 | Missouri | 1 | 8.3% | $1.3M | |
| 4 | Washington | 1 | 8.3% | $1.1M | |
| 5 | Indiana | 1 | 8.3% | $733K | |
| 6 | Texas | 1 | 8.3% | $545K | |
| 7 | Utah | 1 | 8.3% | $344K | |
| 8 | Wisconsin | 1 | 8.3% | $320K | |
| 9 | Florida | 1 | 8.3% | $215K | |
| 10 | Kentucky | 1 | 8.3% | $101K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify The Cleaning Authority
Lenders code each loan to a NAICS industry. For The Cleaning Authority the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Janitorial Services | 11 | 91.7% | $6.3M | |
| 2 | All Other Personal Services | 1 | 8.3% | $545K |
Questions buyers ask
How much do buyers borrow to buy a Cleaning Authority franchise?
The median SBA 7(a) loan for a Cleaning Authority resale was $519,950 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $307,500 to $688,750. 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 The Cleaning Authority acquisitions?
Midwest Regional Bank has made the most SBA acquisition loans for The Cleaning Authority (1, 8% of the total). Washington Trust Bank, CIBC Bank USA, Newtek Small Business Finance, LLC follow.
What interest rate and term do The Cleaning Authority acquisition loans carry?
The average initial rate at approval was 7.84% (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 Cleaning Authority resale riskier than other SBA-financed acquisitions?
Too few The Cleaning Authority 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 The Cleaning Authority units being bought with SBA loans?
Illinois (2), North Carolina (2), Missouri (1), Washington (1), Indiana (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 Janitorial Services acquisitions
- Illinois acquisitions
- North Carolina acquisitions
- Missouri acquisitions
- Midwest Regional Bank
- Washington Trust Bank
- CIBC Bank USA
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Cleaning Authority" (franchise code S1737). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.