Auto Repair Shop Feasibility Study in the Los Angeles-Long Beach-Anaheim, CA Metro Area

The $490,000 median in Los Angeles

Set beside the automotive mechanical repair (car and truck) class across the country, and beside every other class in this metro, loan size is where Los Angeles departs. Across FY2017 to FY2026, Los Angeles applicants in automotive mechanical repair (car and truck) drew 441 approvals totaling $286.9 million. The center sits near $490,000, and the middle half land between $150,000 and $891,000. Beside the class nationally, Los Angeles's median is 2.09x of the national median, above it.

Where Los Angeles stands, 6 of 39 in class

7(a) is the larger program in Los Angeles: 356 loans in 7(a), 85 in 504. For Los Angeles, CA, 504 ties 85 loans to buildings and equipment, whereas 356 7(a) loans may also fund a business sale or operating cash. 2.7% of Los Angeles, CA loans went to franchised units. Place in the national table: 2 of 660. Position among Los Angeles classes: 6 of 39. 0.78x is the Los Angeles quotient: the class is less common around Los Angeles, CA than the national pattern, so either room or soft demand. The record sits in Los Angeles County, CA, with 328 loans, and Orange County, CA, with 113.

Los Angeles lenders, years and the $286.9 million record

The busiest shown year was FY2024, 78 loans and $50.1 million; the quietest was FY2020, 27 loans and $17.2 million. In Los Angeles, CA, 7(a) loans sit mostly with U.S. Bank, National Association, 43 loans, $22.0 million; Wells Fargo Bank National Association, 20 loans, $10.0 million; JPMorgan Chase Bank, National Association, 19 loans, $3.2 million. U.S. Bank, National Association shows 43 loans only since SBA names it holder; the $22.0 million says nothing about lending standards. On the 504 side the holders are Business Finance Capital, 35 loans, $31.6 million and The Mortgage Capital Development Corporation, 16 loans, $9.7 million. The floor under cancellations in Los Angeles is 12.2%, the ceiling 14.0%, across approvals from FY2017 through FY2024. 3.1% or more of 162 disbursed Los Angeles-Long Beach-Anaheim loans are charged off, while the within-five-years rate is held back.

The Los Angeles-Long Beach-Anaheim study: demand, cost, coverage, appraisal at $891,000

Before debt is sized in Los Angeles, the study weighs the age of the local vehicle fleet, technician availability and the density of competing shops, as those set Los Angeles-Long Beach-Anaheim revenue. On cost, the Los Angeles study costs out lifts, the tools technicians expect and parts inventory against Los Angeles lease terms and Los Angeles contractors. Stress Los Angeles cash flow with a $150,000 loan and a $891,000 loan, then check where coverage weakens. Los Angeles-Long Beach-Anaheim appraisers will value the shop building, lifts and equipment and the land one at a time, so the Los Angeles-Long Beach-Anaheim study ought to do the same. A $286.9 million record cannot approve a Los Angeles project, and no reading of it ought to be taken as a promise.

Limits behind 441 Los Angeles, CA loans

Placement of 441 Los Angeles loans runs on the project county. The July 2023 delineation puts Los Angeles County, CA inside Los Angeles-Long Beach-Anaheim, and every county is matched by name. In Los Angeles, CA, 441 loans share a code that cannot split trucks from cars; body, glass and oil-change shops are not counted. Los Angeles, CA cancellation covers FY2017 to FY2024 approvals for Los Angeles; charge-offs cover FY2017 to FY2021 disbursements.