Liquor Store Feasibility Study in the Atlanta-Sandy Springs-Roswell, GA Metro Area

Large tickets, large concentration

Liquor stores in the Atlanta metro area borrow on a different scale than liquor stores elsewhere. The median loan is $1.8 million, roughly 3.89x the median borrowed by the class nationwide, and the middle half runs from $895,000 to $3.8 million. The location quotient is 2.46x, so the class weighs far more locally than nationally, and nationally the area is 4 of 426 for liquor store loans, as locally the class is 4 of 39. SBA approved 347 loans here from FY2017 into FY2026, adding up to $793.1 million.

Program mix and counties

SBA 7(a) accounts for 323 loans and SBA 504 for 24. Fulton County provides 74 loans, DeKalb 52, Cobb 38, Gwinnett 31 and Forsyth 26, with Cherokee, Rockdale, Fayette, Douglas and Paulding far behind. Approvals peaked at 49 loans and $142.4 million in FY2021 and fell to 18 loans, $53.4 million, in FY2026. Too few loans carry a franchise flag to publish the share safely, so Loan Analytics withholds it.

One bank holds the book

In the 7(a) listing, Metro City Bank holds 143 loans worth $433.5 million, an overwhelming share of the class here. First Community Bank (SC) holds 17 for $28.6 million, and Commonwealth Business Bank, Citizens Bank (TN) and Renasant Bank each hold 9. Florida Business Development Corporation holds 11 of the 504 loans for $15.2 million. The holder is the institution SBA currently lists, and the list reveals nothing about what any bank requires.

Cancellations and the figures not printed

For the FY2017 to FY2024 approval years, cancellation after approval is 13.2% at minimum. Two further rates for Atlanta liquor stores, cancellation counting undisbursed loans and charge-off to date, stay blank because Loan Analytics will not print a figure resting on so few loans; neither is zero.

Testing a package store at Atlanta prices

A feasibility study at these ticket sizes must test the purchase price of the business and building together against what the store earns, using the seller's books for sales, margin and inventory. State licensing and local rules on location have to be confirmed for the specific site in Georgia, and the study should check whether a new owner can keep the license without interruption. Coverage ought to be run with a post-sale dip in sales, because concentration among a few lenders and large loan sizes leave little room for error. Loans whose county falls outside any July 2023 area are not counted here.