Auto Repair Shop Feasibility Study in the Modesto, CA Metro Area

Auto repair in the Modesto area

For Modesto, CA, automotive mechanical repair is the third class of 39, and nationally the area is 61 of 660 for it. The record for FY2017 to FY2026 holds 32 approved loans worth $17.3 million. The location quotient of 2.43x is the figure that stands out: repair shops take a share of Modesto's approved loans far above their national share. A median loan of $256,000 is 1.09x the class's national median, nearly in line with it, so Modesto stands apart in how often shops appear, not in how much each borrows.

Programs, brands and the one holder

The 7(a) program accounts for 26 loans and the 504 program for 6, with 18.8% carrying a franchise brand. The middle half runs from $80,000 to $713,550, a wide spread that spans equipment packages and real-estate purchases. Stanislaus County, CA carries all 32. Holder detail is limited to U.S. Bank, National Association, listed for 5 SBA 7(a) loans totalling $2.2 million.

Three years print. FY2017 shows 7 loans and $821,000. FY2020 is an empty year, 0 loans and $0. FY2022 shows 6 loans and $3.4 million. The FY2017 average is small and the FY2022 average large, so the mix of loan types shifted. Years not listed have too few loans behind them, which is not the same as none. Modesto's repair cohort is under 30 loans, and for that reason Loan Analytics prints no cancellation or charge-off rate.

Limits, and what a Modesto shop study must test

In Modesto's class truck service is bundled into car repair, and collision work, paint, interiors, glass, quick-lube and catch-all repair lines are all out. Stanislaus County is the only way in: a loan joins the area by way of the county where its project sits, as set out in July 2023. A heavy local concentration of repair-shop loans is a signal for a study to answer: how many bays already serve the same radius, and what will draw vehicles to a new one. It should test technician supply, equipment cost against a typical loan near $256,000, and a debt payment covered in a slow quarter, with the appraisal keeping real estate and business apart. Warranty work, fleet accounts and repeat customers should be separated from walk-in trade in the revenue forecast, because they behave differently in a slow month.