Auto Repair Shop Feasibility Study in the Madison, WI Metro Area

Auto repair around Dane County

The Madison, WI Metro Area shows repair shops for cars and trucks with 31 SBA loans in FY2017 to FY2026, totalling $11.6 million. Dane County holds 21 of them. The class is seventh of 39 locally, and the metro is 64 of 660 when areas are ranked by these loans. A location quotient of 1.07x is nearly the national weight. Madison's median loan is $180,000, which is 0.77x the national median for the class; the central half of its loans falls between $50,000 and $342,500. Each of these figures is simply a plain reading of the cell beside the class nationally.

Programs, holders and what the class includes

SBA 7(a) accounts for 26 loans and SBA 504 for 5. Among current 504 holders as SBA reports them, WBD, Inc. holds 5 loans worth $3.0 million; among 7(a) holders, Summit CU holds 13 loans worth $2.0 million. These are holding records and nothing more. The class takes in mechanical repair for cars and trucks together; Collision repair, paint, glass and oil changes sit outside it, as does all other automotive repair. Franchise share is not printed, since too few loans back it.

The printed years

Madison's record by year is thin. FY2017 prints 6 loans at $1.2 million and FY2021 prints 5 loans at $3.0 million, while FY2023 prints 0 loans and $0, a year that passed with no loan in the class. Years not mentioned hold too few of the 31 loans to display; treat each as blank, not zero. Dane County's FY2017 to FY2021 disbursements fall under the 30 that Loan Analytics demands, so cancellation and charge-off go unreported.

Testing a Madison repair shop

A middle half that starts at $50,000 shows that many borrowers here finance equipment or a change of ownership rather than a building. A study should test the number of bays and technicians against the car counts the location can generate, the labor hours billed, the parts margin and the diagnostic equipment needed. The 504 loans, with WBD, Inc. holding 5 of them, are the route for owned real estate, so a project that includes a building should separate the property's value from the business's cash flow in the appraisal discussion. Heavier truck work calls for larger bays and lifts, since trucks share the class. Project county, on the July 2023 delineation, decides whether a loan is counted.