Auto Repair Shop Feasibility Study in Nebraska

A clean record in a typical class

Auto repair lending in Nebraska is run of the mill in size and rare in outcome. The state logged 62 loans for automotive mechanical repair between FY2017 and FY2026, adding up to $22.9 million. Its median of $214,500 equals 0.91x the national median, the central band spans $60,000 to $317,825, and the location quotient of 0.99x means the class carries almost exactly its national weight. The class ranks 36 of 51 among the states and 6 of 39 inside Nebraska. Cancellation is the one measure that sets the state apart: the floor stands at 0.00%.

No cancellations, no losses

No approval from FY2017 through FY2024 shows as cancelled, whether or not unfunded loans are counted as dropped, and the 33 loans that reached disbursement in the early window show no charge-offs to date and none inside five years. A lender can treat that as a very strong record, with the caveat that these are floors that later years may revise and that a group of 33 is small.

Programs, lenders and counties

SBA 7(a) accounts for 50 loans and SBA 504 for 12. Franchise brands account for 3.2%, so independent owners dominate. U.S. Bank, National Association is the single entry in the lender table, holding 6 loans worth $1.5 million. Lancaster County has 19 loans and Douglas County 11, then Lincoln with 6 and Buffalo, Dodge, Gage and Sarpy at 3 each, showing that the lending reaches beyond the two largest urban areas.

A late spike

Annual approvals stayed between 2 and 8 until FY2025, when they jumped to 14 loans worth $6.3 million, then fell back to 2 loans and $207,000 in FY2026, the year ended 2026-09-30. A lender should wait to see whether the FY2025 group performs as well as earlier ones.

What the study should test

Work on a Nebraska repair shop should test the vehicle base nearby: registrations, average vehicle age, and the dealers and chains that compete for the same work. Technician hiring is the typical binding constraint, so labour cost and bay productivity matter as much as the lease. Build-out cost should be tested against a ticket close to the $214,500 median, which usually funds equipment, a leasehold, or a modest building. Debt service coverage should assume a ramp in weekly repair orders and a technician turnover case, and the appraisal for an owned shop will value a single-purpose commercial building with a limited buyer pool.

Where the class ends

Heavy truck service sits in the same count as car repair, so a diesel shop is included. Collision and paint work, windshield glass, quick oil changes and general repair are filed under other classes and fall outside these figures.