Supermarkets and Other Grocery Retailers: SBA business acquisition loan data
465 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Supermarkets and Other Grocery Retailers (except Convenience Retailers) (NAICS 445110), totaling $467M. Median loan $634,600, in line with 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 $1,271,900 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 #20 of 300 industries tracked.
- Geography. California leads with 117 loans; the top five states account for 51% of the industry's acquisitions.
- Jobs. Lenders reported 7,649 jobs supported across these loans, about 16.4 per acquisition, a rough proxy for the size of business changing hands.
Supermarkets and Other Grocery Retailers acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 44 | $36.5M | $449,500 | |
| FY2019 | 48 | $28.5M | $352,500 | |
| FY2020 | 51 | $38.1M | $463,000 | |
| FY2021 | 60 | $62.4M | $762,000 | |
| FY2022 | 49 | $40.3M | $607,100 | |
| FY2023 | 47 | $42M | $485,000 | |
| FY2024 | 52 | $57.4M | $743,000 | |
| FY2025 | 68 | $97.9M | $867,500 | |
| FY2026 | 46 | $63.5M | $962,500 |
How often do these acquisition loans fail?
Of the 203 Supermarkets and Other Grocery Retailers acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 8 have been charged off by the SBA, a rate of 3.9% by loan count and 1.3% by dollars. 104 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 Supermarkets and Other Grocery Retailers is 12% 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 | California | 117 | 25.2% | $96.6M | |
| 2 | Washington | 39 | 8.4% | $45.3M | |
| 3 | Michigan | 30 | 6.5% | $36.1M | |
| 4 | New York | 30 | 6.5% | $29.7M | |
| 5 | Illinois | 23 | 4.9% | $32.5M | |
| 6 | Ohio | 21 | 4.5% | $12.5M | |
| 7 | Texas | 17 | 3.7% | $19.5M | |
| 8 | Florida | 14 | 3.0% | $23.9M | |
| 9 | Pennsylvania | 13 | 2.8% | $8M | |
| 10 | Wisconsin | 12 | 2.6% | $13.6M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hanmi Bank | 29 | 6.2% | $30.5M | |
| 2 | Open Bank | 28 | 6.0% | $29.2M | |
| 3 | Bank of Hope | 23 | 4.9% | $12.3M | |
| 4 | The Huntington National Bank | 15 | 3.2% | $16.1M | |
| 5 | Metro City Bank | 12 | 2.6% | $19.6M | |
| 6 | Readycap Lending, LLC | 9 | 1.9% | $19.7M | |
| 7 | Celtic Bank Corporation | 9 | 1.9% | $10.9M | |
| 8 | Byline Bank | 8 | 1.7% | $13.3M | |
| 9 | Live Oak Banking Company | 8 | 1.7% | $12.4M | |
| 10 | Commonwealth Business Bank | 8 | 1.7% | $6.4M |
That draft favors the seller. We review it for the buyer, line by line.
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Franchise brands in Supermarkets and Other Grocery Retailers
6% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Piggly Wiggly | 9 | 33.3% | $8.4M | |
| 2 | IGA USA | 5 | 18.5% | $3.3M | |
| 3 | Jackson Food Stores | 1 | 3.7% | $1.2M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Supermarkets and Other Grocery Retailers?
Median $634,600 across 465 acquisition loans (FY2018 to FY2026); the middle half ran $290,300 to $1,271,900. That is in line with the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Supermarkets and Other Grocery Retailers acquisitions?
Hanmi Bank (29), Open Bank (28), Bank of Hope (23), The Huntington National Bank (15), Metro City Bank (12).
Are businesses in Supermarkets and Other Grocery Retailers often franchised?
Sometimes. 6% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Piggly Wiggly, IGA USA, Jackson Food Stores.
How risky are SBA loans for buying a business in Supermarkets and Other Grocery Retailers?
Of 203 seasoned loans (FY2018 to FY2021), 3.9% charged off, 12% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Supermarkets and Other Grocery Retailers acquisitions?
Median term 10 years, average initial rate 7.56% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
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