Buying a Woodcraft franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Woodcraft (classified mostly as Hobby, Toy, and Game Retailers), totaling $5M. The median loan was $612,500, 5% 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 Woodcraft resale loans landed between $309,100 and $1,154,000.
- Lender experience exists. Fifth Third Bank alone has financed 2 Woodcraft resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Woodcraft resale
The median SBA 7(a) loan for a Woodcraft resale was $612,500 across 7 loans (FY2018 to FY2026). Fifth Third Bank, Beacon Bank and Trust and First Business Bank have financed the most Woodcraft 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%.
Woodcraft acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $2M | $612,500 | |
| FY2019 | 2 | $2.5M | $1,228,000 | |
| FY2020 | 1 | $118K | $118,200 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $500K | $500,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Woodcraft 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.
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Lenders financing Woodcraft resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fifth Third Bank | 2 | 28.6% | $1.6M | |
| 2 | Beacon Bank and Trust | 2 | 28.6% | $713K | |
| 3 | First Business Bank | 1 | 14.3% | $1.4M | |
| 4 | First-Citizens Bank & Trust Company | 1 | 14.3% | $1.2M | |
| 5 | Summit Bank | 1 | 14.3% | $118K |
States where Woodcraft units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Oregon | 2 | 28.6% | $1.5M | |
| 2 | Pennsylvania | 2 | 28.6% | $713K | |
| 3 | Virginia | 1 | 14.3% | $1.2M | |
| 4 | Kansas | 1 | 14.3% | $1.1M | |
| 5 | Michigan | 1 | 14.3% | $500K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Woodcraft
Lenders code each loan to a NAICS industry. For Woodcraft the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hobby, Toy, and Game Retailers | 3 | 42.9% | $2.4M | |
| 2 | Hardware Retailers | 3 | 42.9% | $2.1M | |
| 3 | All Other Miscellaneous Retailers | 1 | 14.3% | $500K |
Questions buyers ask
How much do buyers borrow to buy a Woodcraft franchise?
The median SBA 7(a) loan for a Woodcraft resale was $612,500 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $309,100 to $1,154,000. 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 Woodcraft acquisitions?
Fifth Third Bank has made the most SBA acquisition loans for Woodcraft (2, 29% of the total). Beacon Bank and Trust, First Business Bank, First-Citizens Bank & Trust Company follow.
What interest rate and term do Woodcraft acquisition loans carry?
The average initial rate at approval was 7.37% (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 Woodcraft resale riskier than other SBA-financed acquisitions?
Too few Woodcraft 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 Woodcraft units being bought with SBA loans?
Oregon (2), Pennsylvania (2), Virginia (1), Kansas (1), Michigan (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.
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Related
- All Hobby, Toy, and Game Retailers acquisitions
- Oregon acquisitions
- Pennsylvania acquisitions
- Virginia acquisitions
- Fifth Third Bank
- Beacon Bank and Trust
- First Business Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Woodcraft" (franchise code S1945). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.