Pharmacies and Drug Retailers: SBA business acquisition loan data
496 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Pharmacies and Drug Retailers (NAICS 456110), totaling $740M. Median loan $1,172,500, 82% higher than the all-acquisition median. Annual volume rose 38% from FY2024 to FY2026.
Financing one? Read the guide: How to get an SBA loan to buy a pharmacy
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 $1,926,250 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 1.0% of all SBA-financed business purchases, ranking #17 of 300 industries tracked.
- Geography. California leads with 70 loans; the top five states account for 35% of the industry's acquisitions.
- Jobs. Lenders reported 5,600 jobs supported across these loans, about 11.3 per acquisition, a rough proxy for the size of business changing hands.
Pharmacies and Drug Retailers acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 41 | $78.5M | $1,800,000 | |
| FY2019 | 80 | $117M | $1,145,000 | |
| FY2020 | 72 | $93.2M | $1,080,750 | |
| FY2021 | 77 | $124M | $1,200,000 | |
| FY2022 | 32 | $42.1M | $1,026,000 | |
| FY2023 | 47 | $72.9M | $1,290,000 | |
| FY2024 | 40 | $59.8M | $1,237,500 | |
| FY2025 | 52 | $80.4M | $1,300,000 | |
| FY2026 | 55 | $72.3M | $900,000 |
How often do these acquisition loans fail?
Of the 270 Pharmacies and Drug Retailers acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 9 have been charged off by the SBA, a rate of 3.3% by loan count and 2.6% by dollars. 119 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 Pharmacies and Drug Retailers is 5% 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.
The purchase agreement decides what you bought, not the loan approval.
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Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 70 | 14.1% | $97.6M | |
| 2 | Texas | 34 | 6.9% | $47.4M | |
| 3 | Louisiana | 24 | 4.8% | $28.8M | |
| 4 | New York | 23 | 4.6% | $28.1M | |
| 5 | Ohio | 22 | 4.4% | $27.1M | |
| 6 | North Carolina | 21 | 4.2% | $39.2M | |
| 7 | New Jersey | 21 | 4.2% | $33.4M | |
| 8 | Michigan | 20 | 4.0% | $29.4M | |
| 9 | Georgia | 19 | 3.8% | $32.3M | |
| 10 | Pennsylvania | 19 | 3.8% | $22M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 157 | 31.7% | $307M | |
| 2 | First Financial Bank | 116 | 23.4% | $185M | |
| 3 | Byline Bank | 34 | 6.9% | $51.8M | |
| 4 | The Huntington National Bank | 10 | 2.0% | $8.2M | |
| 5 | United Community Bank | 8 | 1.6% | $8M | |
| 6 | First Bank | 6 | 1.2% | $6.9M | |
| 7 | PNC Bank, National Association | 5 | 1.0% | $7M | |
| 8 | U.S. Bank, National Association | 5 | 1.0% | $2.9M | |
| 9 | First-Citizens Bank & Trust Company | 4 | 0.8% | $9.3M | |
| 10 | First State Bank | 4 | 0.8% | $5.9M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Franchise brands in Pharmacies and Drug Retailers
8% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Health Mart Pharmacy | 21 | 51.2% | $32.7M | |
| 2 | The Medicine Shoppe | 10 | 24.4% | $15.8M | |
| 3 | Good Neighbor Pharmacy | 7 | 17.1% | $19.1M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Pharmacies and Drug Retailers?
Median $1,172,500 across 496 acquisition loans (FY2018 to FY2026); the middle half ran $739,950 to $1,926,250. That is 82% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Pharmacies and Drug Retailers acquisitions?
Live Oak Banking Company (157), First Financial Bank (116), Byline Bank (34), The Huntington National Bank (10), United Community Bank (8).
Are businesses in Pharmacies and Drug Retailers often franchised?
Sometimes. 8% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Health Mart Pharmacy, The Medicine Shoppe, Good Neighbor Pharmacy.
How risky are SBA loans for buying a business in Pharmacies and Drug Retailers?
Of 270 seasoned loans (FY2018 to FY2021), 3.3% charged off, 5% lower than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Pharmacies and Drug Retailers acquisitions?
Median term 10 years, average initial rate 7.42% 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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