Buying a Learning Experience franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Learning Experience (classified mostly as Child Care Services), totaling $12.2M. The median loan was $500,000, 23% lower than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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 The Learning Experience resale loans landed between $426,500 and $1,480,125.
- Lender experience exists. American Momentum Bank alone has financed 2 The Learning Experience resales.
- Guaranty. The SBA guaranteed 72% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Learning Experience resale
The median SBA 7(a) loan for a Learning Experience resale was $500,000 across 12 loans (FY2018 to FY2026). American Momentum Bank, Embassy National Bank and Readycap Lending, LLC have financed the most The Learning Experience 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 Learning Experience acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $3.2M | $365,000 | |
| FY2019 | 4 | $3.5M | $871,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $447K | $447,000 | |
| FY2024 | 1 | $500K | $500,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 3 | $4.6M | $1,732,500 |
How often do these acquisition loans fail?
Fewer than 20 The Learning Experience 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 Learning Experience resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | American Momentum Bank | 2 | 16.7% | $2.6M | |
| 2 | Embassy National Bank | 1 | 8.3% | $2.7M | |
| 3 | Readycap Lending, LLC | 1 | 8.3% | $2.4M | |
| 4 | Zions Bancorporation, National Association | 1 | 8.3% | $1.7M | |
| 5 | Live Oak Banking Company | 1 | 8.3% | $500K | |
| 6 | Wallis Bank | 1 | 8.3% | $500K | |
| 7 | Columbia Bank | 1 | 8.3% | $495K | |
| 8 | Happen Bank | 1 | 8.3% | $447K | |
| 9 | Somerset Regal Bank | 1 | 8.3% | $365K | |
| 10 | Bank of America, National Association | 1 | 8.3% | $330K |
States where The Learning Experience units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 3 | 25.0% | $3M | |
| 2 | North Carolina | 2 | 16.7% | $3.1M | |
| 3 | New Jersey | 2 | 16.7% | $860K | |
| 4 | Connecticut | 1 | 8.3% | $2.4M | |
| 5 | Colorado | 1 | 8.3% | $1.7M | |
| 6 | Georgia | 1 | 8.3% | $500K | |
| 7 | Texas | 1 | 8.3% | $500K | |
| 8 | Michigan | 1 | 8.3% | $100K |
That draft favors the seller. We review it for the buyer, line by line.
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Questions buyers ask
How much do buyers borrow to buy a Learning Experience franchise?
The median SBA 7(a) loan for a Learning Experience resale was $500,000 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $426,500 to $1,480,125. 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 Learning Experience acquisitions?
American Momentum Bank has made the most SBA acquisition loans for The Learning Experience (2, 17% of the total). Embassy National Bank, Readycap Lending, LLC, Zions Bancorporation, National Association follow.
What interest rate and term do The Learning Experience acquisition loans carry?
The average initial rate at approval was 7.71% (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 Learning Experience resale riskier than other SBA-financed acquisitions?
Too few The Learning Experience 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 Learning Experience units being bought with SBA loans?
Florida (3), North Carolina (2), New Jersey (2), Connecticut (1), Colorado (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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Child Care Services acquisitions
- Florida acquisitions
- North Carolina acquisitions
- New Jersey acquisitions
- American Momentum Bank
- Readycap Lending, LLC
- Zions Bancorporation, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Learning Experience" (franchise code S1767). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.