Financing an Ace Hardware with an SBA loan
Since FY2020, 100 Ace Hardware locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.
Ace Hardware franchising: myace.com
What a Ace Hardware deal looks like
Ace Hardware is an established brand in the SBA loan file: 100 acquisitions cleared underwriting in the last five years. The median loan was $1,823,000 at 7.75 percent. Amortized over 10 years, that is about $21,878 a month, or $262,535 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $202,556 of buyer cash, some of which a seller note on standby can sometimes cover.
Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.
7(a) or 504 for an Ace Hardware?
Ace Hardware is typically a leasehold business: the value is goodwill, equipment, and the brand, not real estate. That points to an SBA 7(a) loan, usually amortized over 10 years. The 504 program, which finances owner-occupied real estate, is rarely the fit here unless the deal happens to include a building. Model the payment in the 7(a) calculator and check coverage in the DSCR calculator.
What it costs to open an Ace Hardware
These are Ace Hardware's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.
- Total initial investment
- $603,850 to $2,001,550
- Initial franchise fee
- $5,000
- Ongoing royalty
- No traditional royalty; Ace is a member-owned cooperative. Instead of a royalty, members pay an Annual Brand Assessment (flat ~$6,000/store in the first calendar year, then 2% of prior-year purchases, subject to minimum and maximum). There are no ongoing monthly franchise/royalty fees.
- Net worth required
- $700,000
- Liquid capital required
- $250,000
Hardware retail, figures from the 2025 FDD. Sources: Franchise Chatter — Ace Hardware Franchise Review 2026 (2025 FDD), Franchise Chatter — Ace Hardware Franchise Review 2025, Franchise Chatter — FDD Talk: Ace Hardware 2024 Review, FranchiseHelp — Ace Hardware Franchise Cost & Opportunities, Entrepreneur — Ace Hardware Franchise Information. Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.
Lenders that actually write these
The banks below approved the most Ace Hardware acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.
- Live Oak Banking Company26 Ace Hardware loans
- Huntington National Bank5 Ace Hardware loans
- Northwest Bank4 Ace Hardware loans
- American National Bank of Texas3 Ace Hardware loans
- Byline Bank3 Ace Hardware loans
SBA conditions on this brand
Ace Hardware is listed in the SBA Franchise Directory with no brand-specific lender conditions on file. A lender still runs the standard franchise review, but there is no special addendum or lease restriction attached to this brand.
Frequently asked questions
How much does it cost to buy an Ace Hardware franchise?
Opening an Ace Hardware takes a total initial investment of about $603,850 to $2,001,550, including a $5,000 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Ace Hardware was $1,823,000 in the federal loan file.
Can you buy an Ace Hardware with an SBA loan?
Yes. 100 Ace Hardware locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. A lender runs the standard SBA franchise review as part of underwriting.
How much do you need for a down payment on an Ace Hardware?
SBA requires a minimum 10 percent equity injection. On the median Ace Hardware loan of $1,823,000, that is roughly $202,556 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 10 years, around $21,878 a month at the median rate.
Which lenders finance Ace Hardware acquisitions?
Live Oak Banking Company, Huntington National Bank and Northwest Bank wrote the most Ace Hardware acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.
Other hardware brands buyers finance
Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Ace Hardware's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Ace Hardware or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.