Liquor Store Feasibility Study in New York

New York liquor loans are small

What sets New York's liquor store lending apart is its small loans. The median of $225,000 is 0.50x the liquor store median nationwide. Of the three measures, that median alone differs from both the New York all-industry record and liquor stores nationally. The middle half of approvals spans $60,000 to $500,225. This is a big market for the class all the same: New York ranks 3 of 53 among states, with 570 approvals worth $270.0 million over FY2017 to FY2026; within the state, liquor stores come in at 5 of 39 classes, and the location quotient is 1.38x.

Holders and a statewide spread

Liquor lending in New York reaches well beyond the city. New York County leads with 61 loans, but Suffolk has 57, Nassau 51 and Erie 50, with Kings at 42 and Monroe at 35. SBA 7(a) carried 557 loans and SBA 504 only 13, and no loan carries a franchise code, 0.00% of the book. Manufacturers and Traders Trust Company holds 99 loans worth $16.0 million, while Provident Bank holds 78 worth $42.6 million, a larger average deal, and TD Bank, National Association holds 62. FY2017 was the busiest year, with 97 loans and $30.6 million.

Floors and what a study must verify

Cancellation reached a floor of 14.7% of New York liquor approvals dated FY2017 to FY2024, and a ceiling of 15.6% once undrawn loans are added. Charge-offs are modest: 2.3% of the 263 New York liquor loans disbursed during FY2017 to FY2021, with 1.5% inside five years, though both rates can climb further as the open loans age. A small loan does not mean small risk for the borrower: the purchase price rests on the seller's sales, and the license transfer has to be confirmed. A New York liquor store feasibility study has to verify sales against tax filings and wholesaler invoices, test margins and the effect of nearby competitors and any new store on the same trade area, confirm the license and the transfer timetable, and show debt service coverage on proven earnings, including the rent. When the building is being bought too, retail comparables will drive the appraisal, so the study should show the occupancy cost the store can carry.

There is no class-specific limitation for liquor stores. Each New York loan sits under the industry code on the SBA record, and the outcome rates are floors.