Auto Repair Shop Feasibility Study in the Salt Lake City-Murray, UT Metro Area

Utah repair shops with a real estate habit

Auto repair in Salt Lake City-Murray is a heavier, more property-minded business than the national class. The location quotient is 1.20x, the median loan of $340,000 is 1.45x the class's national median, and 27 of the 97 loans fall under SBA 504, against 70 under SBA 7(a). SBA approved those loans between FY2017 and FY2026, worth $57.1 million, and the middle half runs from $105,000 to $803,000. Across the country the area ranks 24 of 660 for repair, and the class takes fourth place on the local list (4 of 39).

Where and how the money was used

Salt Lake County has 92 of the loans and Tooele County 5. Franchised shops are 11.3%. Mountain West Small Business Finance holds 16 of the 504 loans, worth $13.5 million, so a typical 504 ticket is large. Annual counts were low and steady, 6 loans in FY2021 and in FY2022, and then 14 in FY2024 and 16 in FY2026; FY2022's 6 loans carried $10.6 million and FY2026's 16 carried $13.3 million.

Credit unions near the top

Mountain America FCU tops the 7(a) holders on 13 loans and $3.2 million. Zions Bancorporation, National Association holds 7 for $1.1 million, U.S. Bank, National Association 6 for $2.4 million, JPMorgan Chase Bank, National Association 5 for $6.3 million and Canyon View Federal Credit Union 5 for only $666,000. SBA lists the holder as of today, and the listing is no description of any lender's approach to repair shops.

Cancellations, missing rates and a shared code

The cancellation floor, 8.1% for FY2017 to FY2024 approvals, is low. SBA's source publishes no all-in cancellation ceiling and no charge-off rate for Salt Lake shops, since the loan counts are thin, and unpublished is a different thing from zero. The shop code is shared with truck repair, so some of the loans may be for heavy-vehicle garages.

Testing a Wasatch Front repair shop

The 504 share tells a sponsor that lenders here have often financed the building. A study should therefore say whether the shop will own its premises, and if so test the building's price, its adaptability for another auto use and its environmental condition. Bay count, technician hours and parts margin should be forecast from the traffic of the specific corridor, and coverage should be shown after a technician departure. A $340,000 median suggests equipment and improvements as well as a purchase, so the study should itemize each. Counties are assigned in line with July 2023 definitions.