Buying a Tire Pros franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Tire Pros (classified mostly as Tire Dealers), totaling $2.9M. The median loan was $552,300, 14% lower than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Tire Pros resale loans landed between $526,000 and $606,300.
- Lender experience exists. First National Bank of Louisiana alone has financed 2 Tire Pros resales.
- Guaranty. The SBA guaranteed 81% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Tire Pros resale
The median SBA 7(a) loan for a Tire Pros resale was $552,300 across 5 loans (FY2018 to FY2026). First National Bank of Louisiana, St. Louis Bank and Plumas Bank have financed the most Tire Pros 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%.
Tire Pros acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $526K | $526,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $1.2M | $595,650 | |
| FY2022 | 2 | $1.2M | $579,300 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Tire Pros 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 Tire Pros resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First National Bank of Louisiana | 2 | 40.0% | $1.2M | |
| 2 | St. Louis Bank | 1 | 20.0% | $756K | |
| 3 | Plumas Bank | 1 | 20.0% | $526K | |
| 4 | BMO Bank National Association | 1 | 20.0% | $435K |
States where Tire Pros units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Louisiana | 2 | 40.0% | $1.2M | |
| 2 | Missouri | 1 | 20.0% | $756K | |
| 3 | Nevada | 1 | 20.0% | $526K | |
| 4 | California | 1 | 20.0% | $435K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Tire Pros
Lenders code each loan to a NAICS industry. For Tire Pros the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Tire Dealers | 4 | 80.0% | $2.1M | |
| 2 | General Automotive Repair | 1 | 20.0% | $756K |
Questions buyers ask
How much do buyers borrow to buy a Tire Pros franchise?
The median SBA 7(a) loan for a Tire Pros resale was $552,300 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $526,000 to $606,300. 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 Tire Pros acquisitions?
First National Bank of Louisiana has made the most SBA acquisition loans for Tire Pros (2, 40% of the total). St. Louis Bank, Plumas Bank, BMO Bank National Association follow.
What interest rate and term do Tire Pros acquisition loans carry?
The average initial rate at approval was 5.80% (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 Tire Pros resale riskier than other SBA-financed acquisitions?
Too few Tire Pros 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 Tire Pros units being bought with SBA loans?
Louisiana (2), Missouri (1), Nevada (1), California (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 Tire Dealers acquisitions
- Louisiana acquisitions
- Missouri acquisitions
- Nevada acquisitions
- St. Louis Bank
- Plumas Bank
- BMO Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Tire Pros" (franchise code S2560). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.