Coffee Shop Feasibility Study in the Birmingham, AL Metro Area

Coffee and snack bars in the Birmingham metro

Birmingham, AL records 26 loans made to snack bars and coffee shops over FY2017 to FY2026, adding to $7.5 million. The $240,000 median equals 1.00x the typical national loan, so size here is plainly ordinary, though size alone says little about how a given loan will perform, and the central half spans $184,325 to $421,250. Within Birmingham, coffee shops are sixth of 39 classes; in the ordering by loans the metro is 56 of 612; and a location quotient of 1.39x shows the class weighing more here than nationally. The metro's size, rank and location quotient are plain figures to be read as they stand.

All 7(a), partly branded

Every loan here, 26 of 26, is under SBA 7(a), which leaves SBA 504 with 0 and the real-estate program unused by these shops. Brand affiliation touches 34.6%. Sabre Finance reaches five loans, with 5 worth $732,900 as SBA records the holder; the entry is a holding and nothing about the firm's approach. FY2017 prints 0 loans and $0, a complete year with no loan in this class, and no other year has enough loans to print, so none of the blanks is a zero.

Rates that cannot be shown

Where a rate would sit for cancellation or charge-off, Loan Analytics prints nothing: Birmingham's loans disbursed in FY2017 to FY2021 are fewer than the 30 its rule requires. A borrower reading this page should treat the totals as solid and the missing rates as unknown, since nothing here indicates how these loans performed.

Testing a Birmingham coffee shop

With every loan under 7(a) and a central half capped at $421,250, the project is most likely a leased build-out with equipment, so the study should show lease length against loan term and the cost of improvements the borrower will not own. The model should cover hourly transactions, check size, how much of the volume comes through the drive-through window, labor against hours open, and occupancy cost. A franchised concept adds royalties, which 34.6% of loans here carry. Debt service coverage should be proven with weak early months included. This page does not predict approval, and a loan lands in the metro through the county of the project.