State Farm Insurance
The total investment to open a State Farm Insurance franchise ranges from $50,000 to $421,650. The initial franchise fee is $50,000.
What is the State Farm Insurance franchise?
State Farm Insurance is an insurance agency that offers coverage to individuals and households. The estimated total initial investment is $50,000 to $421,650, and the initial franchise fee is at the lower end of that range.
The brand was founded in 1922. Its headquarters are in Auburn, CA.
Loan Activity Score
48/100
SBA Default Rate
2.7%
Active Lenders
48
According to its Franchise Disclosure Document or public business records, State Farm Insurance has 120 locations, all owned by franchisees. Public SBA loan records show 48 lenders made 74 loans to franchisees of State Farm Insurance. PeerSense calculates State Farm Insurance's score as 48 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1922 · 120 locations
$50,000 to $421,650
$50,000
120
120 franchised
Proprietary PeerSense metric
FairDistinct lenders in public SBA records for State Farm Insurance
74
Total SBA loans
$234K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for State Farm Insurance
Loan Activity Score Breakdown
Established (25 to 99 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
2.7%
vs 8.9% peer avg
SBA Loans
74
Total Volume
$17.3M
Active Lenders
48
4 selective
States
23
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for State Farm Insurance based on SBA lending data
SBA Default Rate
2.7%
6.2% below peer avg
SBA Loan Volume
74 loans
Across 48 lenders
Lender Diversity
48 lenders
Avg 1.5 loans per lender
Investment Tier
Mid range investment
$50,000 to $421,650 total
State Farm Insurance: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2016
25 approvals. The best year on record for State Farm Insurance.
Top SBA State
Texas
14 SBA financed State Farm Insurance locations, the densest operator footprint.
Average Loan Size
$215K
Median $156K. Use as a sizing anchor when modeling your own State Farm Insurance unit.
Lender Concentration
12.9%
Highly Diversified
Share of State Farm Insurance approvals captured by the top 3 SBA lenders.
State Farm Insurance's SBA lending pipeline peaked in 2016 (25 approvals). The last five fiscal years account for 1% of cumulative volume ($459K approved). Operator density is highest in Texas with 14 SBA financed locations. Average funded ticket sits at $215K, with the median at $156K. Lender mix is highly diversified: the top three SBA lenders account for 12.9% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$518
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
State Farm Insurance, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman