Buying a UPS Store franchise: SBA acquisition loan data

What this tells a buyer

• Price range to expect. Loan size tracks purchase price. Half of The UPS Store resale loans landed between $264,750 and $594,400.
• Lender experience exists. The Huntington National Bank alone has financed 54 The UPS Store 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.

How The UPS Store compares

The median for UPS Store resale loans is $393,000, slightly above the $370,400 median for private mail centers and below the $645,250 median for all SBA-financed acquisitions nationally.

The middle half runs $264,750 to $594,400, against $283,000 to $1,465,000 nationally; the median term is 10 years, the same as the national median; the average initial rate is 7.84%, in line with the 7.76% national average.

None of the seasoned loans were charged off, against 2.5% for private mail centers and 3.5% for all acquisition loans.

Loan size distribution

Most UPS Store resale loans (95%) were under $1M, and the largest single band is $350K to under $1M at 53%, against 33% of all acquisition loans.

Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.

Lender concentration

The Huntington National Bank made 16% of UPS Store resale loans, and the top three lenders together made 27%. 29 of the 126 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.

Recent activity

In FY2025 and FY2026 combined, 82 UPS Store resale loans were approved. That is 15% fewer than the 97 approved in FY2023 and FY2024. The median was $475,450, above the $393,000 median across all years.

Financing a UPS Store resale: what lenders financed

The median SBA 7(a) loan for a UPS Store resale was $393,000 across 348 loans (FY2018 to FY2026). The Huntington National Bank, Merchants Bank of Indiana and Centerstone SBA Lending, Inc. have financed the most The UPS Store resales. Of 125 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.

The UPS Store acquisition loans by year

How often do these acquisition loans fail?

Of the 125 The UPS Store acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 72 have already been paid in full.

For comparison, The UPS Store has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.

How lenders classify The UPS Store

Lenders code each loan to a NAICS industry. For The UPS Store the codes used were:

Related

• All Private Mail Centers acquisitions
• California acquisitions
• Florida acquisitions
• Illinois acquisitions
• The Huntington National Bank
• Merchants Bank of Indiana
• Centerstone SBA Lending, Inc.
• All franchise brands

Brand name as recorded by lenders in the SBA file: "The UPS Store" (franchise code S1788). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.