Auto Repair Shop Feasibility Study in Vermont

The smallest loans in this group

Repair shops in Vermont borrow very little. The median is $60,000, which works out at only 0.26x of the national level, and the bulk run from $29,000 to $176,000. Shops here borrow for working tools and short leases, plainly small enterprises. From FY2017 to FY2026 the program backed 35 loans totalling $6.4 million. The location quotient is 1.03x, so Vermont uses SBA for repair shops at about the national rate, and the class is 4 of 39 within the state although Vermont ranks 48 of 51 on count. The loans fund tools, a lift, a lease deposit or a small purchase, not large garages.

Programs, geography and lenders

There are 28 loans under SBA 7(a) and 7 under SBA 504, and none is franchised. No lender reaches the five-loan listing threshold, so we name none. Chittenden County has 7 loans, Washington 6, Orange 5 and Orleans 4, while Caledonia, Rutland, Windham and Windsor have 2 each. The spread across the state shows small shops in towns far from the Burlington area. Industry coding folds heavier vehicle service into the same class as car repair, so some of these loans may finance work on trucks.

The unquoted rates

Neither cancellation nor charge-off appears for this cell, since the cohort behind each is under the 30-loan line. We do not read the gaps as favourable or unfavourable. A tiny shop can depend on one technician who holds the customer relationships, and the risk of that person leaving matters more than any state statistic.

What a Vermont repair study must test

A study should size demand from registered vehicles and the age of the fleet in the area, count competing shops, and decide the mix of routine service and heavier repair. It must price the lift, diagnostic tools and technician wages, then test the revenue per bay against rent and payroll. Winter and road salt bring seasonal demand, so cash flow can swing. Payment coverage should hold if the shop opens slowly. Appraisal value is mostly equipment and, if owned, a small building. The record above shows how modest typical Vermont requests are.