Buying a UNITS franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing UNITS (classified mostly as Lessors of Miniwarehouses and Self-Storage Units), totaling $14.9M. The median loan was $1,963,350, 204% higher than the $645,250 median for all SBA-financed acquisitions.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of UNITS resale loans landed between $777,000 and $2,780,750.
- Lender experience exists. Live Oak Banking Company alone has financed 5 UNITS resales.
- Guaranty. The SBA guaranteed 73% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a UNITS resale
The median SBA 7(a) loan for a UNITS resale was $1,963,350 across 8 loans (FY2018 to FY2026). Live Oak Banking Company, Bank Five Nine and Summit CU have financed the most UNITS 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%.
UNITS acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $2.9M | $2,873,000 | |
| FY2020 | 1 | $260K | $260,000 | |
| FY2021 | 2 | $3.6M | $1,780,000 | |
| FY2022 | 1 | $1.6M | $1,631,700 | |
| FY2023 | 3 | $6.6M | $2,295,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 UNITS 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.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Lenders financing UNITS resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 5 | 62.5% | $12.2M | |
| 2 | Bank Five Nine | 1 | 12.5% | $1.6M | |
| 3 | Summit CU | 1 | 12.5% | $810K | |
| 4 | Wilmington Savings Fund Society FSB | 1 | 12.5% | $260K |
States where UNITS units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 3 | 37.5% | $7.2M | |
| 2 | Arizona | 1 | 12.5% | $2.8M | |
| 3 | Indiana | 1 | 12.5% | $2.3M | |
| 4 | South Carolina | 1 | 12.5% | $1.6M | |
| 5 | Wisconsin | 1 | 12.5% | $810K | |
| 6 | Pennsylvania | 1 | 12.5% | $260K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify UNITS
Lenders code each loan to a NAICS industry. For UNITS the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Lessors of Miniwarehouses and Self-Storage Units | 4 | 50.0% | $11.5M | |
| 2 | All Other Professional, Scientific, and Technical Services | 1 | 12.5% | $810K | |
| 3 | Offices of All Other Miscellaneous Health Practitioners | 1 | 12.5% | $678K | |
| 4 | Other Services to Buildings and Dwellings | 1 | 12.5% | $260K |
Questions buyers ask
How much do buyers borrow to buy a UNITS franchise?
The median SBA 7(a) loan for a UNITS resale was $1,963,350 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $777,000 to $2,780,750. 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 UNITS acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for UNITS (5, 63% of the total). Bank Five Nine, Summit CU, Wilmington Savings Fund Society FSB follow.
What interest rate and term do UNITS acquisition loans carry?
The average initial rate at approval was 6.43% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 15 years.
Is a UNITS resale riskier than other SBA-financed acquisitions?
Too few UNITS 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 UNITS units being bought with SBA loans?
California (3), Arizona (1), Indiana (1), South Carolina (1), Wisconsin (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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Lessors of Miniwarehouses and Self-Storage Units acquisitions
- California acquisitions
- Arizona acquisitions
- Indiana acquisitions
- Live Oak Banking Company
- Bank Five Nine
- Summit CU
- All franchise brands
Brand name as recorded by lenders in the SBA file: "UNITS" (franchise code S1836). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.