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.
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 $1,341,225 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
| Fiscal year | Loans | Total approved | Median 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%.
"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 | 8 | 13.8% | $13.2M | |
| 2 | Texas | 6 | 10.3% | $2.3M | |
| 3 | Illinois | 5 | 8.6% | $3.4M | |
| 4 | Florida | 4 | 6.9% | $5.3M | |
| 5 | Tennessee | 4 | 6.9% | $5.1M | |
| 6 | New York | 3 | 5.2% | $5M | |
| 7 | Louisiana | 3 | 5.2% | $1.9M | |
| 8 | Kansas | 3 | 5.2% | $1.4M | |
| 9 | Connecticut | 2 | 3.4% | $4.1M | |
| 10 | Washington | 2 | 3.4% | $2.1M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 5 | 8.6% | $2.6M | |
| 2 | Live Oak Banking Company | 4 | 6.9% | $8.8M | |
| 3 | Pathward National Association | 3 | 5.2% | $8.4M | |
| 4 | First Internet Bank of Indiana | 3 | 5.2% | $5.8M | |
| 5 | Kendall Bank | 3 | 5.2% | $1.4M | |
| 6 | Frost Bank | 3 | 5.2% | $858K | |
| 7 | Byline Bank | 2 | 3.4% | $3.1M | |
| 8 | Pinnacle Bank | 2 | 3.4% | $2.9M | |
| 9 | U.S. Bank, National Association | 2 | 3.4% | $2.4M | |
| 10 | CenTrust Bank, A Division of SmartBiz Bank National Association | 2 | 3.4% | $2.3M |
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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 | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fastest Labs | 3 | 50.0% | $745K | |
| 2 | Any LabTest Now | 2 | 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.
Terms signed in the LOI shape the purchase agreement that follows.
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