Auto Repair Shop Feasibility Study in Mississippi

The smallest shops, financed almost entirely through 7(a)

Mississippi auto repair loans are tiny and nearly all use one programme. SBA approved 42 loans for car and truck repair shops from FY2017 to FY2026, worth $8.1 million, and every one of them ran through 7(a), with no 504 loan in the file. The median of $106,250 is 0.45x the national class median, and half of the loans fall between $16,550 and $287,050, so many of these are very small loans. The location quotient is 0.71x, repair shops hold 7 of 39 among Mississippi's classes, and the state ranks 42 of 51 on volume. The median and the two floors below are read here as plain figures.

Lenders and places

Trustmark Bank is the only holder named among Mississippi's repair loans, with 7 loans worth $892,600, and the other loans sit with many banks that each hold fewer than 5. Franchise brands appear in 11.9% of loans, so branded service chains hold a real part of the count. Hinds County has 6 loans and Copiah 5, then Covington, Lee and Smith 3 each, so the lending is scattered across small towns and the Jackson area. Annual approvals stayed between 3 and 7 until FY2026, when dollars climbed to $2.0 million on 5 loans.

Cancellation and the code's limits

Cancellation among Mississippi shops approved up to FY2024 stands at 15.6% or more, with an identical ceiling, which is a notable share for loans this small. Loan Analytics holds back the loss rate since under 30 funded loans stand behind it; we show no number and we do not call it zero. The class covers car and truck mechanical repair together. Body, paint, glass, oil change and the other automotive repair trades are counted in different classes, so a collision or lube project should be read against those.

What a Mississippi shop study must test

With a median near $106,250, the study should be lean and specific: the number of vehicles in the trade area, the mix of maintenance and heavier work, the shop's bay count and the technician hours it can actually sell. Cost should include tools, diagnostic equipment and the lease, with working capital for parts. Show the coverage ratio with a slow first year and with the owner as the main technician, since a small shop can depend on one person. In a purchase, reconcile the forecast with the seller's records, because the appraisal will rest on historical earnings. A cancellation floor of 15.6% says a study should confirm lease and equipment terms before closing.