Beauty Salon Feasibility Study in the Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Area

Washington: $42.6 million in beauty salon loans

SBA's loan files count 194 authorized beauty salon loans in Washington, DC from FY2017 to FY2026, $42.6 million in gross dollars. Sizes center near $111,500, and the middle half fall between $32,500 and $303,050. The multiple to the national median for beauty salon is 1.11x, so Washington loans run above the national middle.

Washington against the nation at 1.34x

7(a) is the larger program here: 181 loans in 7(a), 13 in 504. The 181 7(a) loans far outnumber the 13 504 loans. 9.3% of Washington, DC loans went to franchised units. Beauty salon is 5 of 39 among classes inside Washington-Arlington-Alexandria and Washington, DC is 9 of 546 among areas for it. The Washington-Arlington-Alexandria quotient is 1.34x, which puts the class denser in Washington-Arlington-Alexandria than nationally. By county, Montgomery County, MD leads with 31 loans, then Fairfax County, VA with 29 and District of Columbia, DC with 27. The Washington market includes DC, MD, VA, WV; licensing, tax and labor settings may vary by site.

Floors and holders for beauty salon in Washington-Arlington-Alexandria

By year, FY2025 leads with 41 loans and $9.6 million, while FY2021 is lowest with 12 and $4.2 million. Washington 7(a) holders, ranked by loans: Manufacturers and Traders Trust Company, 47 loans, $4.7 million; TD Bank, National Association, 17 loans, $625,000; Readycap Lending, LLC, 11 loans, $981,500. For Manufacturers and Traders Trust Company, the $4.7 million is what SBA shows it as holder of or having held, and that may differ from where the 47 began. The floor under cancellations in Washington-Arlington-Alexandria is 16.3%, the ceiling 16.3%, across approvals from FY2017 through FY2024. A loss rate for beauty salon in Washington, DC needs a larger disbursed cohort than 194 loans supply, so the rate stays withheld.

What a beauty salon study in Washington, DC has to prove

Demand comes first: in Washington-Arlington-Alexandria, beauty salon sales hinge on nearby salons and suites, walk-in against appointment business and booked chair-hours, and no count of 194 loans settles those. Then Washington costs: a lease, plumbing and chairs and stations, each checked for Washington and compared with the $111,500 median loan. Coverage in Washington-Arlington-Alexandria is tested at $111,500, $32,500 and $303,050 alike, since the record spans that range. The appraiser probes Washington collateral too, namely salon equipment, the lease and stylist-linked goodwill; a Washington study anticipates each. The $42.6 million Washington record is a yardstick, not a forecast in Washington, DC, and promises no Washington borrower approval.

What the Washington figures cannot say about beauty salon

The project county puts each of Washington, DC's 194 loans in the area. Counties such as Montgomery County, MD join Washington by name under the July 2023 delineation. Cancellation and charge-off floors rest on separate cohorts, and the years of each are named beside the rate.