Cosmetics, Beauty Supplies, and Perfume Stores: SBA business acquisition loan data
23 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Cosmetics, Beauty Supplies, and Perfume Stores (NAICS 446120), totaling $11.2M. Median loan $365,000, 43% lower than the all-acquisition median.
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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 $645,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is less than 0.05% of all SBA-financed business purchases, ranking #268 of 300 industries tracked.
- Geography. Texas leads with 8 loans; the top five states account for 78% of the industry's acquisitions.
- Jobs. Lenders reported 116 jobs supported across these loans, about 5.0 per acquisition, a rough proxy for the size of business changing hands.
Cosmetics, Beauty Supplies, and Perfume Stores acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 9 | $4.1M | $280,000 | |
| FY2020 | 3 | $2.2M | $790,000 | |
| FY2021 | 8 | $2.3M | $263,800 | |
| FY2022 | 2 | $575K | $287,500 | |
| FY2023 | 1 | $2M | $2,000,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 20 Cosmetics, Beauty Supplies, and Perfume Stores acquisition loans approved from FY2019 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 8 have already been paid in full.
For comparison, Cosmetics, Beauty Supplies, and Perfume Stores has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the FY2018 to FY2021 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 | Texas | 8 | 34.8% | $3.5M | |
| 2 | New York | 3 | 13.0% | $2.5M | |
| 3 | California | 3 | 13.0% | $803K | |
| 4 | Virginia | 2 | 8.7% | $1.3M | |
| 5 | Georgia | 2 | 8.7% | $910K | |
| 6 | Missouri | 1 | 4.3% | $1M | |
| 7 | Washington | 1 | 4.3% | $500K | |
| 8 | Ohio | 1 | 4.3% | $441K | |
| 9 | Illinois | 1 | 4.3% | $180K | |
| 10 | Arkansas | 1 | 4.3% | $142K |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Bank of Hope | 5 | 21.7% | $960K | |
| 2 | Woori America Bank | 3 | 13.0% | $2.6M | |
| 3 | CDC Small Business Finance Corp. | 2 | 8.7% | $368K | |
| 4 | PCB Bank | 1 | 4.3% | $1M | |
| 5 | OakStar Bank | 1 | 4.3% | $1M | |
| 6 | Wilmington Savings Fund Society FSB | 1 | 4.3% | $1M | |
| 7 | Customers Bank | 1 | 4.3% | $806K | |
| 8 | Celtic Bank Corporation | 1 | 4.3% | $790K | |
| 9 | Mountain Pacific Bank | 1 | 4.3% | $500K | |
| 10 | PNC Bank, National Association | 1 | 4.3% | $447K |
Terms signed in the LOI shape the purchase agreement that follows.
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Questions buyers ask
How much is a typical SBA loan to buy a business in Cosmetics, Beauty Supplies, and Perfume Stores?
Median $365,000 across 23 acquisition loans (FY2018 to FY2026); the middle half ran $177,500 to $645,000. That is 43% lower than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Cosmetics, Beauty Supplies, and Perfume Stores acquisitions?
Bank of Hope (5), Woori America Bank (3), CDC Small Business Finance Corp. (2), PCB Bank (1), OakStar Bank (1).
Are businesses in Cosmetics, Beauty Supplies, and Perfume Stores often franchised?
Rarely. Only 4% of acquisition loans in this industry involved a franchised business; most are independent operators.
How risky are SBA loans for buying a business in Cosmetics, Beauty Supplies, and Perfume Stores?
Of 20 seasoned loans (FY2019 to FY2021), none charged off, against the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Cosmetics, Beauty Supplies, and Perfume Stores acquisitions?
Median term 10 years, average initial rate 6.45% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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