Auto Repair Shop Feasibility Study in Hawaii

Hawaii auto repair, island by island

Hawaii's auto repair lending is small in count and concentrated by island. From FY2017 to FY2026 the state shows 39 loans worth $15.4 million, a median of $275,000 that reaches 1.17x the national class level, while the body of loans runs from $47,500 to $498,500, a band that begins very small. The class ranks 45 of 51 across the states, but 4 of 39 within Hawaii, and its location quotient of 1.23x marks a mild overweight. No metric stands apart for this cell, so it reads as a local variation on the national class.

Programs, lenders and islands

SBA 7(a) made 24 loans and SBA 504 made 15, a 504 share that suggests owners purchase their shops. Franchise brands are 2.6%. Newtek Bank, National Association has 6 loans worth $4.3 million, a high average, and First Hawaiian Bank has 5 worth only $173,000. Honolulu County has 21 loans, Hawaii County 13 and Maui 5, which tells us the state's counties are the whole map and neighbouring islands fit under them.

A missing year

Annual approvals ranged from 7 loans worth $497,000 in FY2017 to a blank in FY2020, when none appear. They recovered to 4 loans worth $2.2 million in FY2019, rose to 4 loans and $2.9 million in FY2025, and reached 5 loans and $3.4 million in FY2026.

A high cancellation floor, and no loss rate

At least 20.0% of approvals made over FY2017 to FY2024 never reached funding, with the strict count identical. That is a high floor. No loss rate is shown, since the early disbursed set is too small.

What the study has to test

The Hawaii study must count vehicles on the island, not statewide, since a shop cannot draw from another island. Parts cost, delivery time, rent and technician pay all bear on margin. With a median near $275,000, financing probably covers equipment and a leasehold; the 504 share signals that some owners buy property, where land values dominate the collateral. Run the payment test with a technician vacancy and a parts delay. Heavy truck service is counted with car repair, while collision, glass and quick-lube work sit in other classes.