Beauty Salon Feasibility Study in the Salt Lake City-Murray, UT Metro Area

Salt Lake salons: close to the national pattern

Among 546 areas nationwide, Salt Lake City and Murray comes 31st by salon loan count, and salons take 8th place of 39 classes locally. The location quotient, 1.02x, sits almost exactly at the national mix, so salons here are neither overweight nor scarce. The file carries 65 loans for $18.7 million, FY2017 to FY2026. The inner two quarters of the book stretch from $50,000 to $289,500, around a median of $118,100, which is 1.18x the national beauty salon median.

Seven of the loans use SBA 504, while 58 use SBA 7(a). Franchise brands attach to 26.2% of loans, so most salons are independent. Zions Bancorporation, National Association holds 10 loans for $873,100, Mountain America FCU 6 for $787,400, Celtic Bank Corporation 5 for $821,200, and U.S. Bank, National Association 5 for just $133,300. Each entry names a present holder in SBA's file, and say nothing about how any lender treats salon borrowers. Zions Bancorporation holds the most loans of the four, while U.S. Bank, National Association, with the same count as Celtic Bank Corporation, holds far fewer dollars, so the two differ in average loan size.

Among beauty salon loans approved FY2017 to FY2024, the cancelled share has a floor of 12.5%, a lower bound only. The upper bound is also 12.5%, which means loans that never disbursed add nothing to it. The charge-off share is not printed for lack of enough loans in the cohort; a withheld rate is not zero. The year table lists 8 loans and $1.3 million in FY2017, 13 and $2.3 million in FY2018, 6 and $590,000 in FY2019, 8 and $2.0 million in FY2024, 10 and $2.1 million in FY2025, and 7 and $1.4 million in FY2026.

Salt Lake City beauty: what a salon study has to test

Salon plans need testing on chair count and booth rental against stylist retention, local competition, lease terms, build-out and equipment cost, and whether a few stylists can carry the payment. Whether a loan counts toward the area depends on the name of its project county and the July 2023 boundary list; loans elsewhere are left out. The figures on this page serve as background to a salon plan in this area, and credit is never pledged by a study.