Limited-Service Restaurants acquisitions in Minnesota: SBA loan data
Since FY2018, SBA lenders have approved 59 7(a) loans to buy an existing business classified as Limited-Service Restaurants in Minnesota, totaling $39.9M. The median loan was $317,000. That is 3.3% of the 1,778 acquisition loans in Minnesota.
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How this compares
The median Limited-Service Restaurants loan in Minnesota is 30% lower than the $450,000 median for all Minnesota acquisitions, and 9% lower than the $350,000 median for Limited-Service Restaurants acquisitions nationwide (2,222 loans).
On losses, 4.2% of seasoned Limited-Service Restaurants loans in Minnesota were charged off, 29% higher than the 3.2% rate for all Minnesota acquisitions, and 21% lower than the 5.3% rate for the industry nationally.
Limited-Service Restaurants acquisition loans in Minnesota by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $521K | $84,200 | |
| FY2019 | 9 | $4.1M | $250,000 | |
| FY2020 | 4 | $4.3M | $851,000 | |
| FY2021 | 7 | $4.3M | $515,000 | |
| FY2022 | 9 | $10.8M | $135,000 | |
| FY2023 | 5 | $2M | $352,800 | |
| FY2024 | 10 | $4.9M | $264,000 | |
| FY2025 | 7 | $3.5M | $317,000 | |
| FY2026 | 4 | $5.5M | $389,100 |
How often do these acquisition loans fail?
Of the 24 Limited-Service Restaurants in Minnesota 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 4.2% by loan count and 0.5% by dollars. 16 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 Limited-Service Restaurants in Minnesota is 18% 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.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | BankVista | 19 | 32.2% | $12M | |
| 2 | The Huntington National Bank | 4 | 6.8% | $594K | |
| 3 | Old National Bank | 3 | 5.1% | $8.5M | |
| 4 | Frandsen Bank and Trust | 3 | 5.1% | $1.5M | |
| 5 | BankCherokee | 2 | 3.4% | $795K |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 6 | 10.2% | $6.2M | |
| 2 | Erbert and Gerbert's | 6 | 10.2% | $952K | |
| 3 | Dairy Queen | 5 | 8.5% | $3.7M | |
| 4 | Jimmy John's | 4 | 6.8% | $3.8M | |
| 5 | Culver's | 3 | 5.1% | $5.5M |
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Questions buyers ask
How much do SBA loans for Limited-Service Restaurants acquisitions in Minnesota run?
The median SBA 7(a) loan was $317,000 across 59 loans (FY2018 to FY2026), with the middle half between $108,000 and $706,400. 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 Limited-Service Restaurants acquisitions in Minnesota?
BankVista (19), The Huntington National Bank (4), Old National Bank (3), Frandsen Bank and Trust (3), BankCherokee (2). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Limited-Service Restaurants acquisition loans fail in Minnesota?
4.2% of 24 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 Limited-Service Restaurants acquisitions in Minnesota?
42 of the 59 loans (71%) involved a franchise brand, most often Subway (6).
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All Minnesota acquisitions
- Financing one? How to get an SBA loan to buy a fast food restaurant
- Limited-Service Restaurants nationally
- Limited-Service Restaurants in California
- Limited-Service Restaurants in Washington
- Limited-Service Restaurants in Texas
- Limited-Service Restaurants in Georgia
- Limited-Service Restaurants in Pennsylvania
- Limited-Service Restaurants in Michigan
- Limited-Service Restaurants in Illinois
- Limited-Service Restaurants in Florida
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Small samples move a lot: each loan in this combination is 2% of the count. Industry is the NAICS code the lender recorded. See the methodology.