Auto Repair Shop Feasibility Study in the Kansas City, MO-KS Metro Area

Two states, one repair market

Kansas City's mechanical repair loans straddle the Missouri-Kansas line, with Jackson County, MO, at 35 loans, Johnson County, KS, at 27, Clay County, MO, at 11 and Wyandotte County, KS, at 6. SBA approved 87 of them from FY2017 to FY2026, worth $37.2 million. Repair is slightly overweight, with a location quotient of 1.20x, and a median loan of $340,000 sits at 1.45x the class's national figure. For car and truck repair the area ranks 27 of 660, while at home the class lands fifth on the local list (5 of 39).

Tickets, programs and franchising

Half of the loans fall between $93,900 and $610,000, so the record includes both very small shops and much larger projects. Of the 87 loans, 76 used 7(a) and 11 used 504, and franchised shops make up only 5.7%. For 504, only Heartland Business Capital, Inc. is listed: 6 loans, $1.8 million. The yearly series prints 13 loans in FY2018 and 11 in FY2024, but FY2017 and FY2019 are withheld for lack of loans and should not be read as zero.

7(a) holders

Hawthorn Bank and U.S. Bank, National Association tie on count at 8 loans, for $1.6 million and $1.3 million. CIBC Bank USA has just 5 loans yet $3.7 million, and OakStar Bank has 5 for $2.5 million. SBA lists the holder now, and the table does not speak to the standards of any lender.

Cancellation, and what is absent

Kansas City carries a 12.9% cancellation floor among its FY2017 to FY2024 approvals. No ceiling and no charge-off rate are given, the counts being small, and a missing figure is not a nil one. Because truck repair shops are filed alongside car repair, heavy-vehicle garages are included.

Testing a Kansas City repair shop

Because the metro spans two states and many counties with different zoning and permitting, a study should start from the specific site's jurisdiction and its rules for service use. It should size bays, technician hours and parts margin to the traffic of the corridor, itemize equipment against the median, and show coverage if a lead technician leaves. A shop buying its building should add the property's value and condition to the analysis. Early documentation of permits and environmental conditions helps a plan survive the gap between approval and closing. Loans in counties missing from the July 2023 list do not appear here.