Auto Repair Shop Feasibility Study in the Phoenix-Mesa-Chandler, AZ Metro Area

The biggest repair loans among these Western areas

Phoenix-Mesa-Chandler stands out for ticket size in auto repair. Its median loan of $428,000 is 1.82x what car and truck mechanical repair loans reach across the country, and half of Phoenix loans sit between $147,000 and $855,000. From FY2017 to FY2026 SBA approved 201 loans for $140.0 million in all. The area ranks 11 of 660 for the class, which takes fifth place among classes here, and the location quotient of 1.17x is moderately above the national share.

Franchise flags appear on 14.9% of loans. Of the total, 162 are SBA 7(a) and 39 are SBA 504, a split showing that nearly one loan in five finances owned real estate. Maricopa County accounts for 190 of the loans and Pinal County for 11, so this is effectively one county's market.

Lenders on the list

These are SBA's current holders, which can differ from the lenders that approved the loans. Arizona Capital Source is the one 504 holder to appear, with 12 loans worth $5.0 million. On the 7(a) side the list runs Live Oak Banking Company with 12 loans and $18.6 million, Bank of America, National Association with 9 and $6.5 million, PNC Bank, National Association with 8 and $1.0 million, MidFirst Bank with 6 and $9.7 million, and SouthState Bank, National Association with 5 and $1.8 million. MidFirst and Live Oak hold the larger loans. Holdings are history, and they do not show what any holder wants from a new applicant.

Phoenix has three suppressed sets, each resting on too few loans: cancellation, charge-off, and the 2018 and 2019 yearly loans and dollars. Not one is printed, and blank is not zero, so this page offers no outcome floor for the area at all. The visible yearly record starts at 23 loans in FY2017, worth $11.6 million, and runs to 29 in FY2025, worth $19.2 million, with the high point of dollars at $22.7 million in FY2024.

What a Phoenix repair-shop study has to test

A study should size demand from the vehicle population around the site, including the older vehicles that generate most repair work, and compare the offer with existing independents, tire chains and dealership service departments. Revenue per bay, labor cost and technician supply drive the income case, and summer heat affects both the repair mix and the workforce. Cost covers lifts, alignment and diagnostic equipment and any environmental compliance. With larger loans and a visible 504 share, the appraisal often has to value a building and a business separately. In the data, truck service is bundled with car repair, while collision body and paint, windshield glass, and quick oil-change shops are excluded from the class. Phoenix counts are further minimums, since a loan whose county fails the July 2023 matching is dropped from the area.