Beauty Salon Feasibility Study in the Raleigh-Cary, NC Metro Area

Salons that borrow well above the national norm

The standout metric in the Raleigh-Cary beauty salon record is size. SBA files hold 54 loans over FY2017 to FY2026, worth $16.6 million, and a median of $249,150 that is 2.49x the national figure. Half of loans fall between $50,750 and $401,250. Location quotient is 1.58x, so salons carry well over their national share of local lending, and Raleigh-Cary is 40 of 546 in the national metro and micro ranking by salon volume, with beauty salon 6 of 39 locally.

Franchise and program

Franchise share is 40.7%, high for a personal service. Of the 54 salon loans, the 7(a) versus 504 split stays unprinted, so the program mix is unknown.

Holders and years

SBA's holder field puts 9 7(a) loans ($1.8 million) with The Huntington National Bank and 5 ($287,800) with Wells Fargo Bank National Association; that is a count of holdings, not a verdict on either. FY2023 stands out with 12 loans and $3.5 million. FY2017 had 5 and $1.0 million, FY2019 had 6 and $3.6 million, FY2025 had 8 and $2.1 million, and FY2026 has 8 and $3.0 million. FY2018, FY2020 to FY2022 and FY2024 are withheld.

What is not published

Across the 54 Raleigh-Cary salon loans, no cancellation or charge-off rate is shown, the counts being thin, and neither is zero. Project counties are tied to the July 2023 area by name, so a loan whose county cannot be tied is left out.

What the Raleigh salon study has to test

Since borrowers here take much larger loans than the national pattern, the study should show what the money buys: more chairs, suites for independent stylists, retail space, or a franchise buildout. A study should also test stylist supply and retention, the clientele within a short drive, and rent per square foot at the target center. Run coverage at the median and near $401,250. Leasehold improvements and equipment will make up almost all the collateral an appraiser can value. It should also ask whether a franchise brand is worth its fees in a market where nearly four in ten borrowers have one, and how a slow ramp to full chairs would strain monthly payments in the first year.