Buying a U.S. Lawns franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing U.S. Lawns (classified mostly as Landscaping Services), totaling $12.2M. The median loan was $846,100, 31% higher 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 U.S. Lawns resale loans landed between $673,500 and $1,239,250.
- Lender experience exists. The Bancorp Bank National Association alone has financed 3 U.S. Lawns 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 U.S. Lawns resale
The median SBA 7(a) loan for a U.S. Lawns resale was $846,100 across 10 loans (FY2018 to FY2026). The Bancorp Bank National Association, Pinnacle Bank and Bank of America, National Association have financed the most U.S. Lawns 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%.
U.S. Lawns acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $646K | $646,000 | |
| FY2019 | 2 | $1.2M | $610,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $756K | $756,000 | |
| FY2022 | 1 | $802K | $802,200 | |
| FY2023 | 1 | $627K | $627,000 | |
| FY2024 | 1 | $3.7M | $3,701,700 | |
| FY2025 | 2 | $3.1M | $1,549,700 | |
| FY2026 | 1 | $1.3M | $1,309,000 |
How often do these acquisition loans fail?
Fewer than 20 U.S. Lawns 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 U.S. Lawns resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Bancorp Bank National Association | 3 | 30.0% | $3.5M | |
| 2 | Pinnacle Bank | 2 | 20.0% | $1.5M | |
| 3 | Bank of America, National Association | 1 | 10.0% | $3.7M | |
| 4 | OptimumBank | 1 | 10.0% | $1.3M | |
| 5 | Beacon Bank and Trust | 1 | 10.0% | $1M | |
| 6 | BayFirst National Bank | 1 | 10.0% | $756K | |
| 7 | SouthState Bank, National Association | 1 | 10.0% | $330K |
States where U.S. Lawns units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | South Carolina | 2 | 20.0% | $4.3M | |
| 2 | Florida | 2 | 20.0% | $3.4M | |
| 3 | Massachusetts | 2 | 20.0% | $1.4M | |
| 4 | Kentucky | 1 | 10.0% | $1M | |
| 5 | Georgia | 1 | 10.0% | $890K | |
| 6 | Tennessee | 1 | 10.0% | $802K | |
| 7 | Virginia | 1 | 10.0% | $330K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify U.S. Lawns
Lenders code each loan to a NAICS industry. For U.S. Lawns the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Landscaping Services | 9 | 90.0% | $11.4M | |
| 2 | Lessors of Nonresidential Buildings (except Miniwarehouses) | 1 | 10.0% | $802K |
Questions buyers ask
How much do buyers borrow to buy a U.S. Lawns franchise?
The median SBA 7(a) loan for a U.S. Lawns resale was $846,100 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $673,500 to $1,239,250. 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 U.S. Lawns acquisitions?
The Bancorp Bank National Association has made the most SBA acquisition loans for U.S. Lawns (3, 30% of the total). Pinnacle Bank, Bank of America, National Association, OptimumBank follow.
What interest rate and term do U.S. Lawns acquisition loans carry?
The average initial rate at approval was 7.72% (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 U.S. Lawns resale riskier than other SBA-financed acquisitions?
Too few U.S. Lawns 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 U.S. Lawns units being bought with SBA loans?
South Carolina (2), Florida (2), Massachusetts (2), Kentucky (1), Georgia (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.
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Related
- All Landscaping Services acquisitions
- South Carolina acquisitions
- Florida acquisitions
- Massachusetts acquisitions
- The Bancorp Bank National Association
- Pinnacle Bank
- Bank of America, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "U.S. Lawns" (franchise code S1825). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.