Marina Feasibility Study in Michigan

Second among states for marina loans

Michigan is where marina lending is concentrated. Michigan ranks 2 of 43 for marina loans, and a location quotient of 2.25x puts marinas at more than double their national weight in the state's lending. Yet marinas place only 26 of 39 among Michigan asset classes, so this is a high-intensity niche inside a state whose lending is mostly elsewhere. The FY2017 to FY2026 files hold 25 marina loans totalling $16.8 million gross. The median of $340,000 is 0.55x the national marina median, and half of the loans lie between $100,000 and $811,000. Michigan marina loans are smaller at the median than the national marina median.

The shoreline in the lender and county data

The Huntington National Bank dominates 7(a) with 15 loans worth $8.1 million, 15 of the 25 marina loans in the state. SBA 7(a) carried 18 loans and SBA 504 carried 7. Franchise share is 4.0%. Macomb County leads with 5 loans, followed by Leelanau with 4 and Charlevoix and Ottawa with 3 each. Alcona, Cheboygan, Emmet, Livingston, Muskegon and Oakland have 1 each. Yearly counts surged to 7 in FY2021 and 5 in FY2022, then dropped to none in FY2024 and FY2026. The record shows the counts but not the reasons for the swings, so a study should show how the loan holds up in a weak year.

Outcome rates left blank

The Michigan marina cell has no cancellation or charge-off rate on this page. Every cohort here holds fewer than 30 loans, and withholding a rate below that size is a rule of Loan Analytics, not of SBA. The blank does not stand for zero, and any rates shown on other pages are floors.

What a Michigan marina study has to test

A marina study should test the season first. Revenue should be built line by line from slip rentals, fuel, service, storage and any food or retail, each with its own seasonal curve. Next is the waterfront itself: water rights, dredging, riparian and environmental permits, and the depth of water at the docks. Cost should be tested against a median of $340,000 for small operators and much higher where land is bought. Debt service has to be covered even in a weak season, so a poor boating year goes in the downside case. Because the site is special-purpose, the appraisal may rely on cost or income, so the study should explain which supports the loan.