Beauty Salon Feasibility Study in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area

Salons across state lines

The Philadelphia-Camden-Wilmington area crosses state lines, and its salon record is the main reason to read this page: 227 loans in FY2017 to FY2026, $47.3 million gross, ranking 7 of 546 nationally. Salons are 6 of 39 among Philadelphia classes, and a location quotient of 1.34x shows a heavier concentration than the country's book. The counties are Philadelphia PA (51), Montgomery PA (46), Burlington NJ (26), Delaware PA (25), Camden NJ (21), New Castle DE (17), Bucks PA (16) and Chester PA (14).

The median loan is $75,000, with a ratio to the national median of 0.75x; lower quartile $25,000, upper $247,500. The franchise share is 11.9%. Program counts for this cell are held back: the 7(a) and 504 numbers are withheld, so none appear and none should be inferred. A borrower comparing against a single-state salon figure will find that state lines here matter for licensing and for the landlord market.

Who holds the loans

Bank holders: Manufacturers and Traders Trust Company ($3.5 million across 33 loans); TD Bank, National Association (64 loans, $3.0 million); Wilmington Savings Fund Society FSB (12 loans, $3.0 million); Firstrust Savings Bank (9 loans, $3.9 million); Customers Bank (8 loans, $1.9 million). Dollar totals stay modest because salon loans are small. Reading the table as a ranking of lender quality would be a mistake; it ranks holdings.

Outcomes

On the cancellation side the Philadelphia cell shows a floor of 8.3% and a ceiling of 11.3%, a gap that suggests only a handful of approvals went undrawn. Among 81 disbursed loans a floor of 7.4% has been charged off; the five-year rate is withheld, so it stays unprinted and unguessed.

A study should test the submarket's foot traffic and parking, the commission or booth-rent model, the lease length against the build-out, and coverage at a loan near $75,000. Because the Philadelphia area spans several states, it should also confirm the licensing rules of the state where the shop will stand. Because each of Philadelphia, Montgomery, Burlington, Delaware and Camden appears in the July 2023 delineation, their salon loans make up the 227; a salon in a county that does not appear is not counted, so 227 is a floor on this multi-state area.