Supermarkets and Other Grocery Retailers acquisitions in California: SBA loan data
Since FY2018, SBA lenders have approved 117 7(a) loans to buy an existing business classified as Supermarkets and Other Grocery Retailers in California, totaling $96.6M. The median loan was $512,000. That is 2.3% of the 5,184 acquisition loans in California.
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How this compares
The median Supermarkets and Other Grocery Retailers loan in California is 15% lower than the $600,000 median for all California acquisitions, and 19% lower than the $634,600 median for Supermarkets and Other Grocery Retailers acquisitions nationwide (465 loans).
On losses, 1.9% of seasoned Supermarkets and Other Grocery Retailers loans in California were charged off, 54% lower than the 4.1% rate for all California acquisitions, and 51% lower than the 3.9% rate for the industry nationally.
Supermarkets and Other Grocery Retailers acquisition loans in California by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $6M | $512,000 | |
| FY2019 | 15 | $6.7M | $345,000 | |
| FY2020 | 14 | $6.9M | $357,000 | |
| FY2021 | 14 | $19M | $1,055,000 | |
| FY2022 | 11 | $9.3M | $350,000 | |
| FY2023 | 13 | $12.4M | $500,000 | |
| FY2024 | 14 | $8.7M | $570,500 | |
| FY2025 | 16 | $18.2M | $718,500 | |
| FY2026 | 11 | $9.6M | $840,000 |
How often do these acquisition loans fail?
Of the 52 Supermarkets and Other Grocery Retailers in California 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 1.9% by loan count and 1.0% by dollars. 33 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 Supermarkets and Other Grocery Retailers in California is 45% lower 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Open Bank | 19 | 16.2% | $14.5M | |
| 2 | Bank of Hope | 15 | 12.8% | $7.1M | |
| 3 | Hanmi Bank | 13 | 11.1% | $14.1M | |
| 4 | Commonwealth Business Bank | 7 | 6.0% | $6.2M | |
| 5 | United Business Bank | 7 | 6.0% | $3.3M |
Top franchise brands
No franchise brands recorded in this combination.
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Questions buyers ask
How much do SBA loans for Supermarkets and Other Grocery Retailers acquisitions in California run?
The median SBA 7(a) loan was $512,000 across 117 loans (FY2018 to FY2026), with the middle half between $277,000 and $877,000. 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 Supermarkets and Other Grocery Retailers acquisitions in California?
Open Bank (19), Bank of Hope (15), Hanmi Bank (13), Commonwealth Business Bank (7), United Business Bank (7). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Supermarkets and Other Grocery Retailers acquisition loans fail in California?
1.9% of 52 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 Supermarkets and Other Grocery Retailers acquisitions in California?
None of the 117 loans in this combination were recorded with a franchise brand.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All California acquisitions
- Supermarkets and Other Grocery Retailers nationally
- Supermarkets and Other Grocery Retailers in Washington
- Supermarkets and Other Grocery Retailers in Michigan
- Supermarkets and Other Grocery Retailers in New York
- Supermarkets and Other Grocery Retailers in Illinois
- Supermarkets and Other Grocery Retailers in Ohio
- Full-Service Restaurants in California
- Beer, Wine, and Liquor Retailers in California
- Limited-Service Restaurants in California
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- Convenience Retailers in California
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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.