Motor Vehicle Towing: SBA business acquisition loan data
74 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Motor Vehicle Towing (NAICS 488410), totaling $95.8M. Median loan $967,500, 50% higher than the all-acquisition median.
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 $1,614,250 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 #123 of 300 industries tracked.
- Geography. California leads with 8 loans; the top five states account for 45% of the industry's acquisitions.
- Jobs. Lenders reported 973 jobs supported across these loans, about 13.1 per acquisition, a rough proxy for the size of business changing hands.
Motor Vehicle Towing acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $3.3M | $229,500 | |
| FY2019 | 10 | $7.7M | $538,400 | |
| FY2020 | 16 | $22.9M | $1,001,550 | |
| FY2021 | 10 | $12.9M | $1,369,850 | |
| FY2022 | 4 | $9.3M | $1,687,750 | |
| FY2023 | 9 | $12M | $676,900 | |
| FY2024 | 7 | $8.3M | $543,000 | |
| FY2025 | 5 | $12.3M | $1,394,000 | |
| FY2026 | 7 | $7.1M | $1,173,000 |
How often do these acquisition loans fail?
Of the 42 Motor Vehicle Towing acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 2.4% by loan count and 0.1% 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 Motor Vehicle Towing is 32% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 8 | 10.8% | $19M | |
| 2 | North Carolina | 7 | 9.5% | $10.4M | |
| 3 | Minnesota | 7 | 9.5% | $6.9M | |
| 4 | Florida | 6 | 8.1% | $5.7M | |
| 5 | Utah | 5 | 6.8% | $1.9M | |
| 6 | Missouri | 4 | 5.4% | $12.4M | |
| 7 | Kansas | 4 | 5.4% | $4.2M | |
| 8 | Michigan | 4 | 5.4% | $3.1M | |
| 9 | Colorado | 3 | 4.1% | $3.6M | |
| 10 | Texas | 3 | 4.1% | $3.4M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | 5.4% | $5.9M | |
| 2 | Newtek Small Business Finance, LLC | 4 | 5.4% | $4.8M | |
| 3 | First National Bank of Pennsylvania | 3 | 4.1% | $4.2M | |
| 4 | United Business Bank | 2 | 2.7% | $9.1M | |
| 5 | VelocitySBA, LLC | 2 | 2.7% | $4.5M | |
| 6 | The Croghan Colonial Bank | 2 | 2.7% | $3.6M | |
| 7 | The Lyon County State Bank | 2 | 2.7% | $3.1M | |
| 8 | First Bank | 2 | 2.7% | $2.1M | |
| 9 | The Huntington National Bank | 2 | 2.7% | $1.6M | |
| 10 | Banner Bank | 2 | 2.7% | $1.2M |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much is a typical SBA loan to buy a business in Motor Vehicle Towing?
Median $967,500 across 74 acquisition loans (FY2018 to FY2026); the middle half ran $434,775 to $1,614,250. That is 50% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Motor Vehicle Towing acquisitions?
Live Oak Banking Company (4), Newtek Small Business Finance, LLC (4), First National Bank of Pennsylvania (3), United Business Bank (2), VelocitySBA, LLC (2).
Are businesses in Motor Vehicle Towing often franchised?
Rarely. Only 0% of acquisition loans in this industry involved a franchised business; most are independent operators.
How risky are SBA loans for buying a business in Motor Vehicle Towing?
Of 42 seasoned loans (FY2018 to FY2021), 2.4% charged off, 32% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Motor Vehicle Towing acquisitions?
Median term 10 years, average initial rate 7.50% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
The purchase agreement decides what you bought, not the loan approval.
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