Buying a True Value franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 18 7(a) loans to buy an existing True Value (classified mostly as Hardware Retailers), totaling $14.8M. The median loan was $790,000, 22% higher 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 True Value resale loans landed between $317,500 and $970,500.
- Lender experience exists. Byline Bank alone has financed 3 True Value resales.
- Guaranty. The SBA guaranteed 74% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a True Value resale
The median SBA 7(a) loan for a True Value resale was $790,000 across 18 loans (FY2018 to FY2026). Byline Bank, Beacon Bank and Trust and Equity Bank have financed the most True Value 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%.
True Value acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $955K | $477,500 | |
| FY2019 | 4 | $3.2M | $1,008,750 | |
| FY2020 | 3 | $1.5M | $460,500 | |
| FY2021 | 1 | $860K | $860,000 | |
| FY2022 | 3 | $4M | $870,000 | |
| FY2023 | 1 | $927K | $927,000 | |
| FY2024 | 4 | $3.3M | $482,500 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 True Value 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 True Value resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Byline Bank | 3 | 16.7% | $3.3M | |
| 2 | Beacon Bank and Trust | 2 | 11.1% | $1.1M | |
| 3 | Equity Bank | 1 | 5.6% | $2.8M | |
| 4 | Countybank | 1 | 5.6% | $1.1M | |
| 5 | Santander Bank, National Association | 1 | 5.6% | $1M | |
| 6 | New York Business Development Corporation | 1 | 5.6% | $927K | |
| 7 | SouthState Bank, National Association | 1 | 5.6% | $900K | |
| 8 | Central Bank | 1 | 5.6% | $860K | |
| 9 | BMO Bank National Association | 1 | 5.6% | $720K | |
| 10 | Oxford Bank | 1 | 5.6% | $616K |
States where True Value units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Missouri | 3 | 16.7% | $5.2M | |
| 2 | New York | 3 | 16.7% | $2.1M | |
| 3 | Florida | 2 | 11.1% | $1.8M | |
| 4 | Illinois | 2 | 11.1% | $656K | |
| 5 | South Carolina | 1 | 5.6% | $1.1M | |
| 6 | Connecticut | 1 | 5.6% | $1M | |
| 7 | Kentucky | 1 | 5.6% | $870K | |
| 8 | California | 1 | 5.6% | $720K | |
| 9 | Michigan | 1 | 5.6% | $616K | |
| 10 | Wisconsin | 1 | 5.6% | $461K |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
How lenders classify True Value
Lenders code each loan to a NAICS industry. For True Value the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hardware Retailers | 14 | 77.8% | $11.7M | |
| 2 | General Rental Centers | 2 | 11.1% | $1.8M | |
| 3 | Home Centers | 1 | 5.6% | $927K | |
| 4 | Plumbing, Heating, and Air-Conditioning Contractors | 1 | 5.6% | $349K |
Questions buyers ask
How much do buyers borrow to buy a True Value franchise?
The median SBA 7(a) loan for a True Value resale was $790,000 across 18 loans (FY2018 to FY2026). The middle half of loans ran from $317,500 to $970,500. 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 True Value acquisitions?
Byline Bank has made the most SBA acquisition loans for True Value (3, 17% of the total). Beacon Bank and Trust, Equity Bank, Countybank follow.
What interest rate and term do True Value acquisition loans carry?
The average initial rate at approval was 7.58% (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 True Value resale riskier than other SBA-financed acquisitions?
Too few True Value 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 True Value units being bought with SBA loans?
Missouri (3), New York (3), Florida (2), Illinois (2), South Carolina (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Hardware Retailers acquisitions
- Missouri acquisitions
- New York acquisitions
- Florida acquisitions
- Byline Bank
- Beacon Bank and Trust
- Equity Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "True Value Company LLC - Member Agreement" (franchise code S2299). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.