Beauty Salon Feasibility Study in Nevada

Nevada's salon lending is small in absolute terms but weighs more heavily in the state than salons do nationally. From FY2017 to FY2026 the state approved 101 SBA loans to beauty salons worth $31.4 million, ranking 25 of 54 among states, and the class is 6 of 39 among Nevada's classes. A location quotient of 1.09x confirms the slight overweight. The median loan is $150,000, or 1.50x the national median for salons, yet Nevada salons fail our distinctness screen, which requires a gap against Nevada's all-class record as well as the national class. A larger ticket here looks like Nevada lending in general rather than a salon-specific pattern.

Franchises and a wide spread of loan sizes

Franchised salons make up 25.7% of loans, a large share for the trade, and they bring a brand's build-out standards and royalty load into the underwriting. The middle half of loans stretches from $30,000 to $360,600, so a Nevada lender sees everything from small equipment loans to full acquisitions. SBA 7(a) carries 94 approvals and SBA 504 carries 7. U.S. Bank, National Association holds 20 loans but only $892,200 in total, the mark of small lines, while Zions Bancorporation, National Association's 15 loans total $3.7 million. Wells Fargo Bank National Association holds 8 for $482,000 and The Huntington National Bank 5 for $1.5 million. Clark County accounts for 78 of the approvals and Washoe for 18; the rest of the state barely registers.

Outcomes once the money moved

No loan approved in FY2017 to FY2024 is still awaiting disbursement, so the cancellation floor and ceiling are the same 10.0%. The Nevada salon loans funded during FY2017 to FY2021 total 40, with a charge-off floor of 5.0% to date and 2.5% inside the first five years; part of the loss arrived after the early years. With a group this small and loans still running, treat both charge-off figures as minimums.

Questions a Nevada salon study must answer

Because nearly all of the activity sits in Clark and Washoe counties, a feasibility study has to work at street level: competing salons, suites and franchise units within the customer's drive, and the stylist labour pool the business will hire from. Cost should be priced from bids, with the franchisor's required finish included where a brand is involved. Debt service coverage should allow for royalty and marketing fees on franchised units and for the slow build of a client book, and it should be stressed for the departure of senior stylists. When a loan finances an acquisition, the appraisal values the business, and the study should square the purchase price with sales the seller can document.

Beauty salons carry no class-specific coding caveat in our map. The figures cover SBA approvals only, rest on the borrower's industry code and treat every rate as a floor.