Beauty Salon Feasibility Study in the Madison, WI Metro Area

Salons in Madison

In Madison, beauty salon loans stand at 5 of 39 among Madison's classes, and the area is 50 of 546 on the national list for them. The cell counts 34 approved loans worth $6.4 million throughout FY2017 to FY2026. Measured as a location quotient, beauty salon loans score 1.48x in Madison, a heavier slice than nationally. No metric on the page is called distinctive in Madison's beauty salon cell.

The median is $126,209, which is 1.26x the national median over beauty salons, and most typical loans sit between $32,225 and $245,700. The lower edge is very small, so the cell mixes tiny equipment loans with larger buildouts. SBA's data in Madison omits how the Madison loans split over 7(a) and 504 here in Madison. Madison: these totals count only SBA-recorded beauty salon loans, so a study in Madison should take them as only one input for beauty salon.

Two holders

Summit CU appears with $576,718 spread over 13 of the 7(a) loans and Lake Ridge Bank with 9, carrying $2.3 million. The first holds more loans but far fewer dollars, so its loans are the small ones. The record is of holding, not of credit policy.

The page prints two years: 7 loans worth $1.2 million in FY2018, and FY2022 with 5 loans and $1.3 million. We do not print Madison's both cancellation and charge-off rates because the Madison FY2017 to FY2021 pool has under 30 loans, a number our cut-off treats as too few for Madison. A withheld rate in Madison is never a zero.

A salon in the Madison area needs a chair count, a realistic hold on stylists or renters, and a timeline for building regular clients. Run the loan payment beside a median-sized request of $126,209 and beside a slow opening. If the plan is to buy an existing salon, tie the price to what it earns, and expect the lender to read the lease and the work the space needs. The federal county grouping defines Madison, so loans from counties Madison does not place are absent from its totals.

Two readings of Madison's numbers

Lenders can take from this that the useful feature of Madison's beauty salon cell is its spread: the bottom of the middle band is tiny and the top of the Madison band sits far above its bottom, so a salon proposal has to be read relative to its own purpose, whether a chair rental start-up or a full buildout. From a borrower's side, the shown band is a reality check on what lenders in Madison have actually carried, and a request far above it will need a strong reason. Neither reading depends on any trend, since this Madison page prints just a few years and withholds the rest.