Hardware Retailers: SBA business acquisition loan data
268 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Hardware Retailers (NAICS 444140), totaling $290M. Median loan $758,450, 18% higher than the all-acquisition median. Annual volume rose 21% from FY2024 to FY2026. 57% of these deals were franchised units.
Financing one? Read the guide: How to get an SBA loan to buy a hardware store
Seller note standby terms and third-party consents are reviewed before closing.
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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 $1,441,125 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.5% of all SBA-financed business purchases, ranking #40 of 300 industries tracked.
- Geography. California leads with 22 loans; the top five states account for 31% of the industry's acquisitions.
- Jobs. Lenders reported 3,909 jobs supported across these loans, about 14.6 per acquisition, a rough proxy for the size of business changing hands.
Hardware Retailers acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 19 | $14.6M | $612,500 | |
| FY2019 | 18 | $16.1M | $788,000 | |
| FY2020 | 38 | $33.5M | $577,500 | |
| FY2021 | 41 | $40.2M | $776,500 | |
| FY2022 | 42 | $38.7M | $632,500 | |
| FY2023 | 28 | $35.5M | $854,750 | |
| FY2024 | 24 | $21M | $761,000 | |
| FY2025 | 29 | $44.3M | $990,000 | |
| FY2026 | 29 | $46.1M | $1,152,300 |
How often do these acquisition loans fail?
Of the 116 Hardware Retailers 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 1.7% by loan count and 0.4% by dollars. 50 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 Hardware Retailers is 51% lower 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.
The purchase agreement decides what you bought, not the loan approval.
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Top states
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 52 | 19.4% | $84.1M | |
| 2 | The Huntington National Bank | 13 | 4.9% | $8.5M | |
| 3 | Byline Bank | 9 | 3.4% | $13.4M | |
| 4 | Old National Bank | 7 | 2.6% | $6.9M | |
| 5 | BankVista | 5 | 1.9% | $9.2M | |
| 6 | SouthState Bank, National Association | 5 | 1.9% | $8.6M | |
| 7 | Columbia Bank | 5 | 1.9% | $4.6M | |
| 8 | Beacon Bank and Trust | 5 | 1.9% | $3.2M | |
| 9 | First Financial Bank | 5 | 1.9% | $1.7M | |
| 10 | Northwest Bank | 4 | 1.5% | $5.4M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands in Hardware Retailers
57% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ace Hardware | 106 | 69.7% | $140M | |
| 2 | Do it Best | 23 | 15.1% | $16.7M | |
| 3 | True Value | 14 | 9.2% | $11.7M | |
| 4 | Hardware Hank | 3 | 2.0% | $3.7M | |
| 5 | Woodcraft | 3 | 2.0% | $2.1M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Hardware Retailers?
Median $758,450 across 268 acquisition loans (FY2018 to FY2026); the middle half ran $310,900 to $1,441,125. That is 18% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Hardware Retailers acquisitions?
Live Oak Banking Company (52), The Huntington National Bank (13), Byline Bank (9), Old National Bank (7), BankVista (5).
Are businesses in Hardware Retailers often franchised?
Yes, often. 57% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Ace Hardware, Do it Best, True Value, Hardware Hank, Woodcraft.
How risky are SBA loans for buying a business in Hardware Retailers?
Of 116 seasoned loans (FY2018 to FY2021), 1.7% charged off, 51% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Hardware Retailers acquisitions?
Median term 10 years, average initial rate 7.01% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
Terms signed in the LOI shape the purchase agreement that follows.
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