Buying a Little Gym franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Little Gym (classified mostly as Fitness and Recreational Sports Centers), totaling $3.1M. The median loan was $250,000, 61% lower than the $645,250 median for all SBA-financed acquisitions. 1 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 The Little Gym resale loans landed between $108,500 and $748,500.
- Lender experience exists. The Huntington National Bank alone has financed 2 The Little Gym 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 Little Gym resale
The median SBA 7(a) loan for a Little Gym resale was $250,000 across 7 loans (FY2018 to FY2026). The Huntington National Bank, Celtic Bank Corporation and Milestone Bank have financed the most The Little Gym 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 Little Gym acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $125K | $125,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $92K | $92,000 | |
| FY2022 | 1 | $756K | $756,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 3 | $1.4M | $250,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 1 | $741K | $741,000 |
How often do these acquisition loans fail?
Fewer than 20 The Little Gym 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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing The Little Gym resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 2 | 28.6% | $1.1M | |
| 2 | Celtic Bank Corporation | 1 | 14.3% | $756K | |
| 3 | Milestone Bank | 1 | 14.3% | $741K | |
| 4 | FDIC - Community Bank & Trust-West Georgia | 1 | 14.3% | $250K | |
| 5 | First Financial Bank | 1 | 14.3% | $125K | |
| 6 | Leader Bank, National Association | 1 | 14.3% | $92K |
States where The Little Gym units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Georgia | 2 | 28.6% | $1.1M | |
| 2 | Virginia | 1 | 14.3% | $756K | |
| 3 | New Jersey | 1 | 14.3% | $741K | |
| 4 | Texas | 1 | 14.3% | $250K | |
| 5 | Kentucky | 1 | 14.3% | $125K | |
| 6 | Massachusetts | 1 | 14.3% | $92K |
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How lenders classify The Little Gym
Lenders code each loan to a NAICS industry. For The Little Gym the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness and Recreational Sports Centers | 3 | 42.9% | $1.1M | |
| 2 | All Other Miscellaneous Schools and Instruction | 2 | 28.6% | $1.1M | |
| 3 | Sports and Recreation Instruction | 1 | 14.3% | $756K |
Questions buyers ask
How much do buyers borrow to buy a Little Gym franchise?
The median SBA 7(a) loan for a Little Gym resale was $250,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $108,500 to $748,500. 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 The Little Gym acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for The Little Gym (2, 29% of the total). Celtic Bank Corporation, Milestone Bank, FDIC - Community Bank & Trust-West Georgia follow.
What interest rate and term do The Little Gym acquisition loans carry?
The average initial rate at approval was 8.75% (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 Little Gym resale riskier than other SBA-financed acquisitions?
Too few The Little Gym 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 Little Gym units being bought with SBA loans?
Georgia (2), Virginia (1), New Jersey (1), Texas (1), Kentucky (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.
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Related
- All Fitness and Recreational Sports Centers acquisitions
- Georgia acquisitions
- Virginia acquisitions
- New Jersey acquisitions
- The Huntington National Bank
- Celtic Bank Corporation
- Milestone Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Little Gym" (franchise code S1770). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.