Other Direct Selling Establishments: SBA business acquisition loan data
55 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Other Direct Selling Establishments (NAICS 454390), totaling $50.4M. Median loan $500,000, 23% lower 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 $1,008,500 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 #157 of 300 industries tracked.
- Geography. Florida leads with 9 loans; the top five states account for 51% of the industry's acquisitions.
- Jobs. Lenders reported 433 jobs supported across these loans, about 7.9 per acquisition, a rough proxy for the size of business changing hands.
Other Direct Selling Establishments acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 7 | $9.3M | $381,400 | |
| FY2019 | 14 | $13.6M | $498,500 | |
| FY2020 | 11 | $7.7M | $500,000 | |
| FY2021 | 18 | $10.6M | $468,250 | |
| FY2022 | 1 | $575K | $575,000 | |
| FY2023 | 3 | $6.2M | $1,175,000 | |
| FY2024 | 1 | $2.5M | $2,500,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Of the 50 Other Direct Selling Establishments 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 2.0% by loan count and 0.4% by dollars. 24 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 Direct Selling Establishments is 43% 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
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 10 | 18.2% | $21.5M | |
| 2 | Old National Bank | 4 | 7.3% | $2.3M | |
| 3 | 22nd State Bank, A Division of 22nd State Banking Company | 2 | 3.6% | $1.2M | |
| 4 | CRF Small Business Loan Company, LLC | 2 | 3.6% | $1.2M | |
| 5 | The Huntington National Bank | 2 | 3.6% | $1.1M | |
| 6 | HomeTrust Bank | 2 | 3.6% | $1.1M | |
| 7 | Manufacturers and Traders Trust Company | 2 | 3.6% | $759K | |
| 8 | BayFirst National Bank | 2 | 3.6% | $320K | |
| 9 | Bank of Hope | 1 | 1.8% | $3.2M | |
| 10 | TD Bank, National Association | 1 | 1.8% | $2.5M |
Seller note standby terms and third-party consents are reviewed before closing.
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Franchise brands in Other Direct Selling Establishments
7% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Budget Blinds | 1 | 25.0% | $524K | |
| 2 | AlphaGraphics | 1 | 25.0% | $462K |
Questions buyers ask
How much is a typical SBA loan to buy a business in Other Direct Selling Establishments?
Median $500,000 across 55 acquisition loans (FY2018 to FY2026); the middle half ran $242,000 to $1,008,500. That is 23% lower than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Other Direct Selling Establishments acquisitions?
Live Oak Banking Company (10), Old National Bank (4), 22nd State Bank, A Division of 22nd State Banking Company (2), CRF Small Business Loan Company, LLC (2), The Huntington National Bank (2).
Are businesses in Other Direct Selling Establishments often franchised?
Sometimes. 7% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Budget Blinds, AlphaGraphics.
How risky are SBA loans for buying a business in Other Direct Selling Establishments?
Of 50 seasoned loans (FY2018 to FY2021), 2.0% charged off, 43% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Other Direct Selling Establishments acquisitions?
Median term 10 years, average initial rate 6.37% 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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