Feasibility Study Data for the Faribault-Northfield, MN Micro Area

Behavioral health leads a short list

Faribault-Northfield is Rice County, MN alone, a micropolitan area with 146 loans and $80.4 million from FY2017 to FY2026, 378th of 928 by loan count. Behavioral health and addiction treatment is the largest tracked class, 7 loans, ahead of beverage manufacturing and full-service restaurant at 6 each. A further 103 loans belong to no tracked class.

The mix is 107 loans under 7(a) and 39 under 504, and the 504 side is spread across four institutions: Southeastern Minnesota 504 Development Corporation with 14 loans worth $7.7 million, Midwest Business Finance Corporation with 9 worth $10.3 million, Twin Cities-Metro Certified Development Company with 9 worth $5.7 million, while Amplio Economic Development Corporation closes the list at 7 loans and $7.8 million. Rice County holds all 146 loans, so the record is entirely local. A study should also use the lender table to see which banks have already financed neighbouring projects.

Sizes

Half of the loans fall between $112,000 and $503,000, and the median of $249,200 is 1.20x the national figure. Franchise brands account for 8.9% of loans. The median of $249,200 sits at 1.20x the national figure, so a typical Faribault-Northfield loan runs larger than a typical national one. Because Rice County is the only county in the area, county and area figures are the same record.

SBA's holder field names institutions that hold or held the loans; it is a locator and nothing more. Frandsen Bank and Trust and The State Bank of Faribault each hold 11 7(a) loans, worth $4.8 million and $2.2 million; Merchants Bank, National Association holds 9 worth $3.1 million, Community Resource Bank 9 worth $1.0 million and BankVista 7 worth $3.2 million. No one institution dominates.

Floors, a gap and the study

Cancellation after approval reached 6.0% through FY2024, with the ceiling the same 6.0%. No charge-off rate is printed for Faribault-Northfield, since Loan Analytics withholds a rate resting on too few loans, and no estimate is offered. Approvals ranged from 11 loans in FY2019 to 19 in FY2024, and FY2026 reached $14.4 million. A study ought to test demand in Rice County for the specific use, set cost against loans near the national level, and run coverage with no published loss rate to lean on. An appraisal that supports value comes last. Rice County is drawn from the 2023 delineation, and nothing here promises an approval.