Pharmacies and Drug Retailers acquisitions in California: SBA loan data
Since FY2018, SBA lenders have approved 70 7(a) loans to buy an existing business classified as Pharmacies and Drug Retailers in California, totaling $97.6M. The median loan was $1,090,750. That is 1.4% of the 5,184 acquisition loans in California.
Seller note standby terms and third-party consents are reviewed before closing.
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How this compares
The median Pharmacies and Drug Retailers loan in California is 82% higher than the $600,000 median for all California acquisitions, and 7% lower than the $1,172,500 median for Pharmacies and Drug Retailers acquisitions nationwide (496 loans).
On losses, 6.1% of seasoned Pharmacies and Drug Retailers loans in California were charged off, 47% higher than the 4.1% rate for all California acquisitions, and 82% higher than the 3.3% rate for the industry nationally.
Pharmacies and Drug Retailers acquisition loans in California by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $5.6M | $2,775,000 | |
| FY2019 | 9 | $13.9M | $1,100,000 | |
| FY2020 | 9 | $9.8M | $950,000 | |
| FY2021 | 13 | $22.7M | $1,200,000 | |
| FY2022 | 6 | $7.2M | $981,000 | |
| FY2023 | 9 | $14.1M | $1,225,000 | |
| FY2024 | 6 | $9.7M | $1,486,000 | |
| FY2025 | 8 | $8.7M | $876,750 | |
| FY2026 | 8 | $5.9M | $725,900 |
How often do these acquisition loans fail?
Of the 33 Pharmacies and Drug Retailers in California acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 6.1% by loan count and 2.9% by dollars. 20 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 in California is 72% 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 lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 25 | 35.7% | $48.4M | |
| 2 | First Financial Bank | 13 | 18.6% | $23.2M | |
| 3 | U.S. Bank, National Association | 3 | 4.3% | $1.7M | |
| 4 | East West Bank | 3 | 4.3% | $1.6M | |
| 5 | First-Citizens Bank & Trust Company | 2 | 2.9% | $3.6M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Good Neighbor Pharmacy | 2 | 2.9% | $7.6M | |
| 2 | Health Mart Pharmacy | 1 | 1.4% | $4.3M |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Questions buyers ask
How much do SBA loans for Pharmacies and Drug Retailers acquisitions in California run?
The median SBA 7(a) loan was $1,090,750 across 70 loans (FY2018 to FY2026), with the middle half between $660,150 and $1,635,250. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Pharmacies and Drug Retailers acquisitions in California?
Live Oak Banking Company (25), First Financial Bank (13), U.S. Bank, National Association (3), East West Bank (3), First-Citizens Bank & Trust Company (2). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Pharmacies and Drug Retailers acquisition loans fail in California?
6.1% of 33 seasoned loans (FY2018 to FY2021) were charged off, against 3.5% for all SBA acquisition loans. With a sample this size, treat the figure as a direction, not a precise rate.
Are franchised businesses part of Pharmacies and Drug Retailers acquisitions in California?
5 of the 70 loans (7%) involved a franchise brand, most often Good Neighbor Pharmacy (2).
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All California acquisitions
- Financing one? How to get an SBA loan to buy a pharmacy
- Pharmacies and Drug Retailers nationally
- Pharmacies and Drug Retailers in Louisiana
- Pharmacies and Drug Retailers in New York
- Pharmacies and Drug Retailers in Ohio
- Pharmacies and Drug Retailers in North Carolina
- Pharmacies and Drug Retailers in New Jersey
- Pharmacies and Drug Retailers in Michigan
- Pharmacies and Drug Retailers in Georgia
- Pharmacies and Drug Retailers in Pennsylvania
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Small samples move a lot: each loan in this combination is 1% of the count. Industry is the NAICS code the lender recorded. See the methodology.