SBA Acquisition Data

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.

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acquisition loans
70
FY2018 to FY2026
total approved
$97.6M
gross loan amount
median loan
$1,090,750
middle half: $660K to $1.6M
avg initial rate
7.52%
at approval, mixed years
median term
10 years
120 months
charge-off rate
6.1%
FY2018 to FY2021 cohort, 33 loans

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

Pharmacies and Drug Retailers in California: SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian 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%.

Small sample: 33 seasoned loans. A single additional charge-off would move this rate by about 3.0 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.

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Top lenders

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1Live Oak Banking Company25
35.7%$48.4M
2First Financial Bank13
18.6%$23.2M
3U.S. Bank, National Association3
4.3%$1.7M
4East West Bank3
4.3%$1.6M
5First-Citizens Bank & Trust Company2
2.9%$3.6M

Top franchise brands

Franchise ranked by SBA acquisition loans
#FranchiseLoansShareDollars
1Good Neighbor Pharmacy2
2.9%$7.6M
2Health Mart Pharmacy1
1.4%$4.3M
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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).

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Related

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.