Other Activities Related to Real Estate: SBA business acquisition loan data
90 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Other Activities Related to Real Estate (NAICS 531390), totaling $96M. Median loan $602,850, 7% lower than the all-acquisition median.
The purchase agreement decides what you bought, not the loan approval.
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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 $1,192,750 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 #107 of 300 industries tracked.
- Geography. Florida leads with 10 loans; the top five states account for 40% of the industry's acquisitions.
- Jobs. Lenders reported 1,011 jobs supported across these loans, about 11.2 per acquisition, a rough proxy for the size of business changing hands.
Other Activities Related to Real Estate acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $6.5M | $271,000 | |
| FY2019 | 4 | $3.3M | $356,350 | |
| FY2020 | 12 | $22M | $865,000 | |
| FY2021 | 4 | $2.4M | $624,950 | |
| FY2022 | 13 | $10.4M | $492,000 | |
| FY2023 | 12 | $14.7M | $756,000 | |
| FY2024 | 11 | $11.7M | $675,000 | |
| FY2025 | 15 | $12.6M | $568,000 | |
| FY2026 | 10 | $12.4M | $582,600 |
How often do these acquisition loans fail?
Of the 29 Other Activities Related to Real Estate 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 6.9% by loan count and 1.2% by dollars. 18 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 Other Activities Related to Real Estate is 96% 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 10 | 11.1% | $10.5M | |
| 2 | Texas | 9 | 10.0% | $8.8M | |
| 3 | Washington | 7 | 7.8% | $8.1M | |
| 4 | Indiana | 5 | 5.6% | $3.7M | |
| 5 | Minnesota | 5 | 5.6% | $1.9M | |
| 6 | California | 5 | 5.6% | $1.8M | |
| 7 | New York | 4 | 4.4% | $7.1M | |
| 8 | Illinois | 4 | 4.4% | $5.9M | |
| 9 | Oklahoma | 3 | 3.3% | $9.2M | |
| 10 | Tennessee | 3 | 3.3% | $3.4M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 9 | 10.0% | $15.6M | |
| 2 | The Huntington National Bank | 8 | 8.9% | $4.6M | |
| 3 | Beacon Bank and Trust | 2 | 2.2% | $3.5M | |
| 4 | Milestone Bank | 2 | 2.2% | $2.7M | |
| 5 | STAR Financial Bank | 2 | 2.2% | $2.5M | |
| 6 | Gulf Coast Bank and Trust Company | 2 | 2.2% | $2.5M | |
| 7 | Union Bank and Trust Company | 2 | 2.2% | $1.9M | |
| 8 | PlainsCapital Bank | 2 | 2.2% | $1.5M | |
| 9 | The Union Bank Company | 2 | 2.2% | $650K | |
| 10 | Byline Bank | 2 | 2.2% | $630K |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands in Other Activities Related to Real Estate
9% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Real Property Management | 2 | 25.0% | $621K | |
| 2 | Coldwell Banker Commercial | 2 | 25.0% | $335K |
Questions buyers ask
How much is a typical SBA loan to buy a business in Other Activities Related to Real Estate?
Median $602,850 across 90 acquisition loans (FY2018 to FY2026); the middle half ran $282,225 to $1,192,750. That is 7% lower than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Other Activities Related to Real Estate acquisitions?
Live Oak Banking Company (9), The Huntington National Bank (8), Beacon Bank and Trust (2), Milestone Bank (2), STAR Financial Bank (2).
Are businesses in Other Activities Related to Real Estate often franchised?
Sometimes. 9% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Real Property Management, Coldwell Banker Commercial.
How risky are SBA loans for buying a business in Other Activities Related to Real Estate?
Of 29 seasoned loans (FY2018 to FY2021), 6.9% charged off, 96% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Other Activities Related to Real Estate acquisitions?
Median term 10 years, average initial rate 7.85% 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.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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