Grocery Store Feasibility Study in Louisiana

Grocery at the national norm

Louisiana's grocery record is the opposite of dramatic, and that is the point. The state shows 27 approvals from FY2017 to FY2026, worth $22.3 million, with a location quotient of 0.93x: grocery holds nearly the same share of Louisiana approvals as of the nation's. It ranks 30 of 55 states for the class and 16 of 39 among Louisiana's asset classes, a respectable position in the middle of the table.

Loan size

The median of $411,300 is 1.17x the national median for grocery, somewhat above the typical store. The middle half of loans runs from $278,450 to $773,800, a tighter band than most states show, so borrowers are asking for broadly similar amounts. Of the 27 loans, 26 used 7(a) while a lone loan used 504, so the class is financed almost entirely as a working-capital and equipment product. Franchising accounts for 3.7% of loans, which leaves the market to independent stores and small chains.

Where and when

Jefferson and Lafayette parishes lead with 5 loans each, then Orleans with 3, and Caddo, Pointe Coupee and Washington with 2 each. Jefferson and Orleans are the New Orleans area, and Lafayette is the Acadiana hub. The count was steady, with 5 loans in FY2017, a gap with none in FY2020, and 2 per year from FY2024 to FY2026, the latest dollars being $630,000 in FY2026 and $392,900 in FY2025. No lender is listed for this cell.

Withheld floors and the coding note

Louisiana grocery carries no printed cancellation or charge-off percentage; the cohorts are small enough that any figure would mislead, and the blank is not a zero. Because SBA records the applicant's stated industry, convenience stores, specialty food shops and supermarkets can be blended in the same line.

What a Louisiana grocery study has to test

Louisiana's food retail depends heavily on household spending patterns, so the study should show the trade area, the existing stores and the share the project can realistically win. It must test whether the sales forecast per square foot supports occupancy cost and the loan, with a lease or purchase price measured against the median ticket of $411,300. Equipment, particularly cold storage, and the risk of storm-related closures deserve a line of their own, together with insurance. Debt service coverage should be shown on cautious first-year sales, and the appraiser will want the income evidence behind any value above the building's cost.