Feasibility Study Data for the Merced, CA Metro Area

How big lending runs in Merced

277 loans inside Merced, CA from FY2017 to FY2026 add up to $240.3 million gross. Then, Merced sits at 260 of 928 among all CBSAs by loans. Worth noting: $351,000 gives the typical loan; the inner half lies between $126,000 and $1.3 million. In practice, locally the median is 1.69x of the country's median, so tickets run ahead of the national middle. In turn, Merced keeps to loans from its own counties, not a whole state's average: 277 approvals in total.

The program mix and who lends in Merced

226 7(a) approvals compare with 51 loans under 504. Also, 19.1% of the approvals go to franchised units in Merced. Under 7(a) lending, the leading banks and lenders by count rank as Celtic Bank Corporation booking 29 loans totalling $43.6 million, Wells Fargo Bank National Association at 18 loans for $4.9 million, plus Community West Bank at 11 loans for $7.2 million. In turn, within 504 approvals, the top program intermediaries by count stand as The Mortgage Capital Development Corporation at 15 loans totalling $29.2 million then Success Capital Expansion & Development Corporation booking 11 loans worth $7.7 million. Also, the names here are taken from SBA files on 277 loans; they record completed approvals alone, not what lenders require across Merced.

Where the loans sit in Merced

Gas station and truck stop at 28, 20 for full-service restaurant, 18 in hotel and motel, then 16 for limited-service restaurant rank first by class by approvals. For context, 153 loans fall outside the named classes, so its $240.3 million total reaches beyond any class table. Next, 5 approvals in medical office across Merced are too few to show a trend. In addition, Merced County holds all of 277 approvals, so area and county are one market. Next, year by year, FY2017 leads off at 43 loans and $22.0 million; no later year tops it, and FY2026, not yet a whole year, completes the tally at 40 loans and $36.2 million.

What the floors allow in Merced

7.6% of FY2017 through FY2024 loans in Merced have been cancelled after approval before funding, and that is a floor. Here, the upper figure for Merced is withheld, so only the floor stands. In turn, no charge-off floor is given for Merced, CA; the pool of disbursed loans is too small, and withheld does not mean zero. Treat each share printed here like a minimum, as approvals made recently got limited time to cancel or go bad, across 277 loans. A Merced entry on the page is defined as the CBSA containing every loan's project county, following July 2023 boundaries as published; each county are paired by name, while a loan whose home county cannot be assigned never counts in each area without exception. In practice, named class or not, any approval under 7(a) or 504 inside the area is added toward its $240.3 million total.

The feasibility questions for Merced

In Merced, a feasibility study for a property should open with the actual proposal, not from the 277-loan file. In addition, local demand in Merced is tested first: does Merced's local customer base support the volume needed, set against rivals in and near Merced County? Separately, the local median runs 1.69x measured against the national median, so prices here may exceed norms for some trades; test the real scope against tenders from area builders. Also, the coverage test binds revenue to cost in Merced: expected net income set against the annual debt service, along with a downside case. Also, the valuation caps the work in this area: market value on completion must cover the borrowing proposed. Then, any borrower holding a separate study of Merced, when first meeting the lenders above, has dealt with these rates in advance; approval stays with the underwriters and SBA for Merced, and a study cannot change that.