Auto Repair Shop Feasibility Study in Rhode Island

Rhode Island repair shops: very small loans

The auto repair cell in Rhode Island is defined by its small tickets. The $100,000 median is 0.43x the nationwide median for the class, and half the loans sit between $50,000 and $220,200. SBA approved 55 loans over FY2017 to FY2026 totalling $9.1 million, which is the median driving the total. The class ranks 5 of 39 in the state and 39 of 51 among states, with a location quotient of 1.09x, so it is a steady part of lending in a small state.

Under 7(a) fall 46 loans and under 504 only 9, with franchising at 5.5%. Eastern Bank has 8 loans and $508,000, Santander Bank, National Association has 7 loans and $1.6 million, and Citizens Bank, National Association has 6 loans and $613,400. Eastern's low average ticket suggests it serves very small shops, while Santander's dollars point to larger purchases of buildings and equipment.

Providence carries the cell

Providence County has 31 loans, Washington 11, Kent 8, Newport 3 and Bristol 2. Annual counts were 9 in FY2017, 3 in FY2022 and FY2024, and 8 in FY2025 worth $2.2 million. Rhode Island cancellations reach a floor of 11.4% for approvals up to FY2024, and the ceiling repeats it. No loss rate is shown for these shops, because the cohort is too thin to support one.

Diligence for a Rhode Island shop

A study should test the customer base: fleet and repeat customers, vehicle age in the area, and the share of work that is routine maintenance against diagnostic repair. Technician supply is the usual limit, and bay count against technicians sets capacity. Cost covers lifts, diagnostic equipment and environmental handling of fluids. Coverage should rely on labor hours sold. The appraisal should consider that a small garage building has other uses, which supports a lender. Be aware that body, paint, interior, glass and oil change work sit outside this category, and a truck-service shop cannot be told apart from a car-repair one. The comparison group of the 55 loans is therefore mechanical repair, not every garage on the street, and a reader should keep that boundary in mind before setting a Rhode Island shop against these figures.