SBA Acquisition Data

Investment Advice: SBA business acquisition loan data

101 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Investment Advice (NAICS 523930), totaling $126M. Median loan $755,000, 17% higher than the all-acquisition median.

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acquisition loans
101
FY2018 to FY2026
total approved
$126M
gross loan amount
median loan
$755,000
middle half: $395K to $1.5M
avg initial rate
6.55%
at approval, mixed years
median term
10 years
120 months
charge-off rate
0.0%
FY2018 to FY2021 cohort, 96 loans

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 $1,500,000 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 #92 of 300 industries tracked.
  • Geography. Florida leads with 11 loans; the top five states account for 39% of the industry's acquisitions.
  • Jobs. Lenders reported 370 jobs supported across these loans, about 3.7 per acquisition, a rough proxy for the size of business changing hands.

Investment Advice acquisitions by year

Investment Advice SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 27
$30M $755,000
FY2019 24
$32.9M $627,500
FY2020 31
$38.5M $750,000
FY2021 14
$20.6M $1,056,550
FY2022 4
$3.2M $460,000
FY2023 0
$0 -
FY2024 1
$999K $999,000
FY2025 0
$0 -
FY2026 0
$0 -

How often do these acquisition loans fail?

Of the 96 Investment Advice 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. 67 have already been paid in full.

For comparison, Investment Advice 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%.

Small sample: 96 seasoned loans. Read it as a direction, not a precise figure.

"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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Top states

State ranked by SBA acquisition loans
#StateLoansShareDollars
1Florida11
10.9%$17M
2California9
8.9%$11.9M
3Illinois7
6.9%$5.5M
4Michigan6
5.9%$11.5M
5Texas6
5.9%$6.8M
6Indiana5
5.0%$8.2M
7New Jersey5
5.0%$7.6M
8Ohio5
5.0%$7.3M
9North Carolina4
4.0%$5.5M
10Colorado4
4.0%$3.8M

Most active lenders

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1Live Oak Banking Company60
59.4%$90.1M
2Byline Bank13
12.9%$11.7M
3First State Bank Nebraska5
5.0%$5.6M
4Pathward National Association4
4.0%$3.5M
5The Bancorp Bank National Association3
3.0%$3.8M
6American Business Bank1
1.0%$2.4M
7United Business Bank1
1.0%$1.4M
8Northwest Community Bank1
1.0%$1.1M
9Busey Bank1
1.0%$1M
10The Fidelity Bank1
1.0%$999K
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SBA-financed deals. All 50 states.

Franchise brands in Investment Advice

18% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:

Brand ranked by SBA acquisition loans
#BrandLoansShareDollars
1Ameriprise Financial18
100.0%$25.9M

Questions buyers ask

How much is a typical SBA loan to buy a business in Investment Advice?

Median $755,000 across 101 acquisition loans (FY2018 to FY2026); the middle half ran $395,000 to $1,500,000. That is 17% higher than the $645,250 median for all SBA-financed acquisitions.

Which lenders finance the most Investment Advice acquisitions?

Live Oak Banking Company (60), Byline Bank (13), First State Bank Nebraska (5), Pathward National Association (4), The Bancorp Bank National Association (3).

Are businesses in Investment Advice often franchised?

Sometimes. 18% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Ameriprise Financial.

How risky are SBA loans for buying a business in Investment Advice?

Of 96 seasoned loans (FY2018 to FY2021), none charged off, against the 3.5% benchmark for all SBA acquisition loans.

What loan terms are common for Investment Advice acquisitions?

Median term 10 years, average initial rate 6.55% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.

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