Lessors of Nonresidential Buildings: SBA business acquisition loan data
63 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Lessors of Nonresidential Buildings (except Miniwarehouses) (NAICS 531120), totaling $67.6M. Median loan $762,000, 18% higher 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 $1,306,500 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 #140 of 300 industries tracked.
- Geography. Pennsylvania leads with 8 loans; the top five states account for 41% of the industry's acquisitions.
- Jobs. Lenders reported 535 jobs supported across these loans, about 8.5 per acquisition, a rough proxy for the size of business changing hands.
Lessors of Nonresidential Buildings acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $4.3M | $1,123,850 | |
| FY2019 | 11 | $8.8M | $472,000 | |
| FY2020 | 11 | $17.5M | $1,107,000 | |
| FY2021 | 14 | $18M | $917,500 | |
| FY2022 | 13 | $10.1M | $560,000 | |
| FY2023 | 9 | $7.6M | $642,500 | |
| FY2024 | 1 | $1.2M | $1,225,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 40 Lessors of Nonresidential Buildings acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 7.5% by loan count and 8.3% by dollars. 21 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 Lessors of Nonresidential Buildings is 113% 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.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 8 | 12.7% | $7.7M | |
| 2 | Texas | 6 | 9.5% | $9.5M | |
| 3 | Colorado | 4 | 6.3% | $5.2M | |
| 4 | Ohio | 4 | 6.3% | $2.4M | |
| 5 | Wisconsin | 4 | 6.3% | $1.9M | |
| 6 | New York | 4 | 6.3% | $1.4M | |
| 7 | Arizona | 3 | 4.8% | $6.7M | |
| 8 | Illinois | 3 | 4.8% | $2M | |
| 9 | California | 2 | 3.2% | $5.1M | |
| 10 | Massachusetts | 2 | 3.2% | $2M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 5 | 7.9% | $4.9M | |
| 2 | The Bancorp Bank National Association | 4 | 6.3% | $3.4M | |
| 3 | Sunflower Bank National Association | 2 | 3.2% | $4.4M | |
| 4 | Wilmington Savings Fund Society FSB | 2 | 3.2% | $3.4M | |
| 5 | Celtic Bank Corporation | 2 | 3.2% | $2.2M | |
| 6 | Midwest Regional Bank | 2 | 3.2% | $1.4M | |
| 7 | Eastern Bank | 2 | 3.2% | $1.2M | |
| 8 | The State Bank and Trust Company | 2 | 3.2% | $1.1M | |
| 9 | CCFBank National Association | 2 | 3.2% | $1.1M | |
| 10 | SouthStar Bank, S.S.B. | 1 | 1.6% | $4.1M |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands in Lessors of Nonresidential Buildings
8% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Microtel Inn & Suites | 1 | 20.0% | $3.1M | |
| 2 | Van De Pol Enterprises | 1 | 20.0% | $2.7M | |
| 3 | U.S. Lawns | 1 | 20.0% | $802K |
Questions buyers ask
How much is a typical SBA loan to buy a business in Lessors of Nonresidential Buildings?
Median $762,000 across 63 acquisition loans (FY2018 to FY2026); the middle half ran $337,500 to $1,306,500. That is 18% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Lessors of Nonresidential Buildings acquisitions?
Live Oak Banking Company (5), The Bancorp Bank National Association (4), Sunflower Bank National Association (2), Wilmington Savings Fund Society FSB (2), Celtic Bank Corporation (2).
Are businesses in Lessors of Nonresidential Buildings often franchised?
Sometimes. 8% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Microtel Inn & Suites, Van De Pol Enterprises, U.S. Lawns.
How risky are SBA loans for buying a business in Lessors of Nonresidential Buildings?
Of 40 seasoned loans (FY2018 to FY2021), 7.5% charged off, 113% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Lessors of Nonresidential Buildings acquisitions?
Median term 20.1 years, average initial rate 6.30% 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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