Bed-and-Breakfast Inns: SBA business acquisition loan data
59 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Bed-and-Breakfast Inns (NAICS 721191), totaling $83.4M. Median loan $1,168,000, 81% higher than the all-acquisition median.
Terms signed in the LOI shape the purchase agreement that follows.
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Reading this industry's numbers
- Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $1,750,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.1% of all SBA-financed business purchases, ranking #151 of 300 industries tracked.
- Geography. Florida leads with 8 loans; the top five states account for 49% of the industry's acquisitions.
- Jobs. Lenders reported 495 jobs supported across these loans, about 8.4 per acquisition, a rough proxy for the size of business changing hands.
Bed-and-Breakfast Inns acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $4.1M | $1,045,000 | |
| FY2019 | 13 | $7.5M | $556,000 | |
| FY2020 | 8 | $13.2M | $1,149,000 | |
| FY2021 | 10 | $15.2M | $1,422,200 | |
| FY2022 | 12 | $14.9M | $1,264,500 | |
| FY2023 | 2 | $2.2M | $1,114,500 | |
| FY2024 | 4 | $13.7M | $3,755,000 | |
| FY2025 | 3 | $8.8M | $2,403,000 | |
| FY2026 | 3 | $3.8M | $1,427,200 |
How often do these acquisition loans fail?
Of the 35 Bed-and-Breakfast Inns acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 20 have already been paid in full.
For comparison, Bed-and-Breakfast Inns has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 8 | 13.6% | $11M | |
| 2 | North Carolina | 7 | 11.9% | $10.1M | |
| 3 | Pennsylvania | 6 | 10.2% | $11.3M | |
| 4 | California | 4 | 6.8% | $6.6M | |
| 5 | Georgia | 4 | 6.8% | $6.5M | |
| 6 | Wisconsin | 3 | 5.1% | $6.1M | |
| 7 | Washington | 3 | 5.1% | $5M | |
| 8 | Virginia | 3 | 5.1% | $3M | |
| 9 | Texas | 3 | 5.1% | $2.1M | |
| 10 | New York | 3 | 5.1% | $1.3M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beacon Bank and Trust | 5 | 8.5% | $10.4M | |
| 2 | Midwest Regional Bank | 4 | 6.8% | $5.4M | |
| 3 | Celtic Bank Corporation | 4 | 6.8% | $5.2M | |
| 4 | Banc of California | 4 | 6.8% | $5.2M | |
| 5 | Manufacturers and Traders Trust Company | 4 | 6.8% | $2.1M | |
| 6 | Byline Bank | 2 | 3.4% | $2.8M | |
| 7 | iTHINK Financial Credit Union | 2 | 3.4% | $1.6M | |
| 8 | Nicolet National Bank | 2 | 3.4% | $1.1M | |
| 9 | The Callaway Bank | 2 | 3.4% | $333K | |
| 10 | Redwood CU | 2 | 3.4% | $304K |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much is a typical SBA loan to buy a business in Bed-and-Breakfast Inns?
Median $1,168,000 across 59 acquisition loans (FY2018 to FY2026); the middle half ran $606,900 to $1,750,000. That is 81% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Bed-and-Breakfast Inns acquisitions?
Beacon Bank and Trust (5), Midwest Regional Bank (4), Celtic Bank Corporation (4), Banc of California (4), Manufacturers and Traders Trust Company (4).
Are businesses in Bed-and-Breakfast Inns often franchised?
Rarely. Only 0% of acquisition loans in this industry involved a franchised business; most are independent operators.
How risky are SBA loans for buying a business in Bed-and-Breakfast Inns?
Of 35 seasoned loans (FY2018 to FY2021), none charged off, against the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Bed-and-Breakfast Inns acquisitions?
Median term 25 years, average initial rate 6.86% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
The purchase agreement decides what you bought, not the loan approval.
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