Limited-Service Restaurants acquisitions in Virginia: SBA loan data
Since FY2018, SBA lenders have approved 47 7(a) loans to buy an existing business classified as Limited-Service Restaurants in Virginia, totaling $32.9M. The median loan was $342,500. That is 5.5% of the 849 acquisition loans in Virginia.
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How this compares
The median Limited-Service Restaurants loan in Virginia is 52% lower than the $719,000 median for all Virginia acquisitions, and in line with the $350,000 median for Limited-Service Restaurants acquisitions nationwide (2,222 loans).
On losses, 4.3% of seasoned Limited-Service Restaurants loans in Virginia were charged off, 22% higher than the 3.6% rate for all Virginia acquisitions, and 18% lower than the 5.3% rate for the industry nationally.
Limited-Service Restaurants acquisition loans in Virginia by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $409K | $204,350 | |
| FY2019 | 10 | $2.9M | $232,750 | |
| FY2020 | 5 | $1.4M | $317,200 | |
| FY2021 | 6 | $2.2M | $322,000 | |
| FY2022 | 4 | $5.6M | $1,413,500 | |
| FY2023 | 6 | $7.9M | $415,000 | |
| FY2024 | 5 | $7.9M | $719,000 | |
| FY2025 | 4 | $2.7M | $516,000 | |
| FY2026 | 5 | $1.8M | $327,500 |
How often do these acquisition loans fail?
Of the 23 Limited-Service Restaurants in Virginia 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 4.3% by loan count and 1.6% by dollars. 15 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 Virginia is 24% 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 | Live Oak Banking Company | 5 | 10.6% | $6.2M | |
| 2 | Pinnacle Bank | 4 | 8.5% | $1.9M | |
| 3 | Stearns Bank National Association | 4 | 8.5% | $805K | |
| 4 | Newtek Bank, National Association | 3 | 6.4% | $875K | |
| 5 | East West Bank | 2 | 4.3% | $6.6M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Firehouse Subs | 6 | 12.8% | $2.3M | |
| 2 | Which Wich | 4 | 8.5% | $1.9M | |
| 3 | Little Caesars | 2 | 4.3% | $7.5M | |
| 4 | Jimmy John's | 2 | 4.3% | $898K | |
| 5 | Dairy Queen | 2 | 4.3% | $473K |
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Questions buyers ask
How much do SBA loans for Limited-Service Restaurants acquisitions in Virginia run?
The median SBA 7(a) loan was $342,500 across 47 loans (FY2018 to FY2026), with the middle half between $225,850 and $623,500. 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 Virginia?
Live Oak Banking Company (5), Pinnacle Bank (4), Stearns Bank National Association (4), Newtek Bank, National Association (3), East West Bank (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 Virginia?
4.3% of 23 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 Virginia?
30 of the 47 loans (64%) involved a franchise brand, most often Firehouse Subs (6).
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Virginia 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
- Hotels and Motels in Virginia
- Full-Service Restaurants in Virginia
- All Other Specialty Trade Contractors in Virginia
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- General Automotive Repair in Virginia
- Fitness and Recreational Sports Centers in Virginia
- Child Care Services in Virginia
- Offices of Certified Public Accountants in Virginia
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.