Tax Preparation Services: SBA business acquisition loan data
192 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Tax Preparation Services (NAICS 541213), totaling $133M. Median loan $472,750, 27% lower than the all-acquisition median.
Financing one? Read the guide: How to get an SBA loan to buy a CPA firm
Terms signed in the LOI shape the purchase agreement that follows.
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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 $869,125 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.4% of all SBA-financed business purchases, ranking #55 of 300 industries tracked.
- Geography. California leads with 40 loans; the top five states account for 49% of the industry's acquisitions.
- Jobs. Lenders reported 2,151 jobs supported across these loans, about 11.2 per acquisition, a rough proxy for the size of business changing hands.
Tax Preparation Services acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 12 | $7.1M | $555,750 | |
| FY2019 | 23 | $9.5M | $320,500 | |
| FY2020 | 16 | $14.4M | $620,000 | |
| FY2021 | 14 | $9.5M | $530,400 | |
| FY2022 | 16 | $9.8M | $365,500 | |
| FY2023 | 17 | $19M | $735,000 | |
| FY2024 | 30 | $15.1M | $363,750 | |
| FY2025 | 36 | $27.2M | $511,150 | |
| FY2026 | 28 | $21.8M | $570,350 |
How often do these acquisition loans fail?
Of the 65 Tax Preparation Services acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 35 have already been paid in full.
For comparison, Tax Preparation Services has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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 | 40 | 20.8% | $20.7M | |
| 2 | Florida | 24 | 12.5% | $19M | |
| 3 | North Carolina | 11 | 5.7% | $8.4M | |
| 4 | Washington | 10 | 5.2% | $11.4M | |
| 5 | Ohio | 10 | 5.2% | $4.9M | |
| 6 | Pennsylvania | 10 | 5.2% | $2.5M | |
| 7 | Missouri | 7 | 3.6% | $5.9M | |
| 8 | Arizona | 7 | 3.6% | $5.4M | |
| 9 | Texas | 6 | 3.1% | $9.2M | |
| 10 | Virginia | 6 | 3.1% | $5.6M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 40 | 20.8% | $26.2M | |
| 2 | The Huntington National Bank | 22 | 11.5% | $10.1M | |
| 3 | United Midwest Savings Bank National Association | 15 | 7.8% | $12.7M | |
| 4 | BMO Bank National Association | 7 | 3.6% | $3.1M | |
| 5 | HomeTrust Bank | 6 | 3.1% | $9.1M | |
| 6 | U.S. Bank, National Association | 6 | 3.1% | $2.3M | |
| 7 | Pathward National Association | 5 | 2.6% | $9.8M | |
| 8 | Byline Bank | 5 | 2.6% | $7.5M | |
| 9 | BankUnited, National Association | 4 | 2.1% | $3.9M | |
| 10 | Pinnacle Bank | 4 | 2.1% | $1.5M |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Franchise brands in Tax Preparation Services
16% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Jackson Hewitt Tax Service | 18 | 58.1% | $25.9M | |
| 2 | Liberty Tax Service | 6 | 19.4% | $3.3M | |
| 3 | H&R Block | 5 | 16.1% | $2.9M | |
| 4 | Padgett Business Services | 2 | 6.5% | $1.1M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Tax Preparation Services?
Median $472,750 across 192 acquisition loans (FY2018 to FY2026); the middle half ran $266,650 to $869,125. That is 27% lower than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Tax Preparation Services acquisitions?
Live Oak Banking Company (40), The Huntington National Bank (22), United Midwest Savings Bank National Association (15), BMO Bank National Association (7), HomeTrust Bank (6).
Are businesses in Tax Preparation Services often franchised?
Sometimes. 16% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Jackson Hewitt Tax Service, Liberty Tax Service, H&R Block, Padgett Business Services.
How risky are SBA loans for buying a business in Tax Preparation Services?
Of 65 seasoned loans (FY2018 to FY2021), none charged off, against the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Tax Preparation Services acquisitions?
Median term 10 years, average initial rate 8.40% 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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