Beauty Salon Feasibility Study in Kansas

Kansas salons: many small loans, a lean toward the state's mix

Salons rank 7 of 39 among Kansas asset classes, and 77 loans approved from FY2017 to FY2026 for $12.8 million place Kansas 28 of 54 in the national table. A location quotient of 1.21x shows somewhat heavier use of SBA credit for salons than the national share. The median loan is $102,200, essentially level with the class nationally at 1.02x, and requests run from $50,000 to $237,300 across the central half. A Kansas salon loan is typically a small build-out and working capital request.

Almost entirely 7(a), concentrated in two counties

SBA 7(a) carried 76 of the loans and SBA 504 just 1, as one would expect for leasehold improvements and equipment rather than owned real estate. Franchise affiliation reaches 16.9% of loans, visible but a minority. Emprise Bank and U.S. Bank, National Association each hold 8 loans, though Emprise's $1.9 million dwarfs the $328,400 behind U.S. Bank. First National Bank of Omaha and INTRUST Bank National Association each hold 5, with $1.4 million and $989,100. Johnson County records 33 loans and Sedgwick 20, so two counties supply most of the file, while Ellis, Riley and Wyandotte have 3 each.

Low leakage and a modest charge-off floor

This is one of the cleaner cancellation records. Counting approvals from FY2017 to FY2024, cancellations come to 5.4% at the floor, and the ceiling is identical, so no undisbursed loans are left to add. A salon owner can expect a funded commitment far more often than not. In the 38-loan cohort disbursed between FY2017 and FY2021, 2.6% are charged off so far, with that 2.6% also failing inside five years of approval, which means failure, when it happened, came early. Approvals started at 12 loans in FY2017, slipped to 3 in FY2023, and climbed back to 12 loans and $2.6 million in FY2026.

What a Kansas salon study has to test

The study should test demand at the trade-area level: households within reach, competing salons and suites, and stylist availability. Costs for build-out and chairs must reconcile with the small tickets lenders have funded. Because failures here came early, coverage should be run on the first-year ramp rather than only a stabilised year. The appraisal matters mainly where the building is owned or where business value supports the loan.