Employment Placement Agencies: SBA business acquisition loan data
83 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Employment Placement Agencies (NAICS 561311), totaling $117M. Median loan $800,000, 24% 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 $1,974,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.2% of all SBA-financed business purchases, ranking #116 of 300 industries tracked.
- Geography. Minnesota leads with 10 loans; the top five states account for 47% of the industry's acquisitions.
- Jobs. Lenders reported 3,409 jobs supported across these loans, about 41.1 per acquisition, a rough proxy for the size of business changing hands.
Employment Placement Agencies acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $7.1M | $400,000 | |
| FY2019 | 12 | $5.9M | $350,000 | |
| FY2020 | 7 | $11.3M | $1,000,000 | |
| FY2021 | 6 | $9M | $829,000 | |
| FY2022 | 9 | $15.4M | $1,148,000 | |
| FY2023 | 10 | $6.6M | $489,100 | |
| FY2024 | 14 | $29.4M | $1,752,000 | |
| FY2025 | 5 | $6.5M | $540,000 | |
| FY2026 | 15 | $25.6M | $800,000 |
How often do these acquisition loans fail?
Of the 30 Employment Placement Agencies acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 6.7% by loan count and 2.2% by dollars. 17 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Employment Placement Agencies is 89% higher than the acquisition-loan average. 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 | Minnesota | 10 | 12.0% | $14M | |
| 2 | Texas | 9 | 10.8% | $11.4M | |
| 3 | Georgia | 8 | 9.6% | $10.8M | |
| 4 | California | 6 | 7.2% | $16.1M | |
| 5 | New York | 6 | 7.2% | $9.1M | |
| 6 | Michigan | 5 | 6.0% | $8.1M | |
| 7 | Florida | 5 | 6.0% | $4.3M | |
| 8 | Ohio | 3 | 3.6% | $7.3M | |
| 9 | Pennsylvania | 3 | 3.6% | $4M | |
| 10 | Maryland | 3 | 3.6% | $2.9M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 11 | 13.3% | $15.9M | |
| 2 | Live Oak Banking Company | 8 | 9.6% | $16.9M | |
| 3 | Old National Bank | 7 | 8.4% | $5.6M | |
| 4 | Pathward National Association | 4 | 4.8% | $11.4M | |
| 5 | First Horizon Bank | 3 | 3.6% | $5.3M | |
| 6 | Byline Bank | 3 | 3.6% | $4.9M | |
| 7 | Newtek Small Business Finance, LLC | 2 | 2.4% | $4.2M | |
| 8 | BankVista | 2 | 2.4% | $3.8M | |
| 9 | Northwest Bank | 2 | 2.4% | $2M | |
| 10 | St. Charles Bank & Trust Company, National Association | 2 | 2.4% | $1.8M |
That draft favors the seller. We review it for the buyer, line by line.
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Franchise brands in Employment Placement Agencies
13% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Express Employment Professionals | 7 | 63.6% | $6.8M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Employment Placement Agencies?
Median $800,000 across 83 acquisition loans (FY2018 to FY2026); the middle half ran $375,000 to $1,974,000. That is 24% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Employment Placement Agencies acquisitions?
The Huntington National Bank (11), Live Oak Banking Company (8), Old National Bank (7), Pathward National Association (4), First Horizon Bank (3).
Are businesses in Employment Placement Agencies often franchised?
Sometimes. 13% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Express Employment Professionals.
How risky are SBA loans for buying a business in Employment Placement Agencies?
Of 30 seasoned loans (FY2018 to FY2021), 6.7% charged off, 89% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Employment Placement Agencies acquisitions?
Median term 10 years, average initial rate 8.11% 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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