SBA Acquisition Data

Testing Laboratories and Services: SBA business acquisition loan data

58 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Testing Laboratories and Services (NAICS 541380), totaling $58.7M. Median loan $519,250, 20% lower than the all-acquisition median.

Sponsored
Acquisition Stars
Lender-approved is not closed.

The purchase agreement decides what you bought, not the loan approval.

Request Engagement Assessment

Alex Lubyansky leads every engagement.

acquisition loans
58
FY2018 to FY2026
total approved
$58.7M
gross loan amount
median loan
$519,250
middle half: $231K to $1.3M
avg initial rate
7.67%
at approval, mixed years
median term
10 years
120 months
charge-off rate
4.8%
FY2018 to FY2021 cohort, 21 loans

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 $1,341,225 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 #152 of 300 industries tracked.
  • Geography. California leads with 8 loans; the top five states account for 47% of the industry's acquisitions.
  • Jobs. Lenders reported 506 jobs supported across these loans, about 8.7 per acquisition, a rough proxy for the size of business changing hands.

Testing Laboratories and Services acquisitions by year

Testing Laboratories and Services SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 3
$1.3M $291,000
FY2019 3
$1.7M $347,000
FY2020 9
$10M $800,000
FY2021 6
$5.1M $626,500
FY2022 4
$3.1M $602,500
FY2023 11
$6.7M $447,300
FY2024 4
$7.2M $1,619,000
FY2025 5
$5.4M $830,000
FY2026 13
$18.3M $800,000

How often do these acquisition loans fail?

Of the 21 Testing Laboratories and Services 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 4.8% by loan count and 0.9% by dollars. 11 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 Testing Laboratories and Services is 35% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.

Small sample: 21 seasoned loans. A single additional charge-off would move this rate by about 4.8 percentage points. Read it as a direction, not a precise figure.

"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.

Sponsored
Acquisition Stars
Lender-approved is not closed.

The purchase agreement decides what you bought, not the loan approval.

Request Engagement Assessment

All 50 states. Free consultation.

Top states

State ranked by SBA acquisition loans
#StateLoansShareDollars
1California8
13.8%$13.2M
2Texas6
10.3%$2.3M
3Illinois5
8.6%$3.4M
4Florida4
6.9%$5.3M
5Tennessee4
6.9%$5.1M
6New York3
5.2%$5M
7Louisiana3
5.2%$1.9M
8Kansas3
5.2%$1.4M
9Connecticut2
3.4%$4.1M
10Washington2
3.4%$2.1M

Most active lenders

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1The Huntington National Bank5
8.6%$2.6M
2Live Oak Banking Company4
6.9%$8.8M
3Pathward National Association3
5.2%$8.4M
4First Internet Bank of Indiana3
5.2%$5.8M
5Kendall Bank3
5.2%$1.4M
6Frost Bank3
5.2%$858K
7Byline Bank2
3.4%$3.1M
8Pinnacle Bank2
3.4%$2.9M
9U.S. Bank, National Association2
3.4%$2.4M
10CenTrust Bank, A Division of SmartBiz Bank National Association2
3.4%$2.3M
Sponsored
Acquisition Stars
The seller's lawyer wrote the draft.

That draft favors the seller. We review it for the buyer, line by line.

Submit Transaction Details

Free consultation. All 50 states.

Franchise brands in Testing Laboratories and Services

10% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:

Brand ranked by SBA acquisition loans
#BrandLoansShareDollars
1Fastest Labs3
50.0%$745K
2Any LabTest Now2
33.3%$900K

Questions buyers ask

How much is a typical SBA loan to buy a business in Testing Laboratories and Services?

Median $519,250 across 58 acquisition loans (FY2018 to FY2026); the middle half ran $231,250 to $1,341,225. That is 20% lower than the $645,250 median for all SBA-financed acquisitions.

Which lenders finance the most Testing Laboratories and Services acquisitions?

The Huntington National Bank (5), Live Oak Banking Company (4), Pathward National Association (3), First Internet Bank of Indiana (3), Kendall Bank (3).

Are businesses in Testing Laboratories and Services often franchised?

Sometimes. 10% of SBA acquisition loans in this industry financed a franchised unit. Top brands: Fastest Labs, Any LabTest Now.

How risky are SBA loans for buying a business in Testing Laboratories and Services?

Of 21 seasoned loans (FY2018 to FY2021), 4.8% charged off, 35% higher than the 3.5% benchmark for all SBA acquisition loans.

What loan terms are common for Testing Laboratories and Services acquisitions?

Median term 10 years, average initial rate 7.67% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.

Sponsored
Acquisition Stars
Call counsel before the LOI, not after.

Terms signed in the LOI shape the purchase agreement that follows.

Request Engagement Assessment

Alex Lubyansky leads every engagement.

Advertise on this site: lenders, brokers, valuation and insurance firms. See options

Related