Quick Service Restaurant Feasibility Study in Illinois

Illinois is a steady, mid sized quick service market in the SBA record. Lenders approved 796 loans to limited-service restaurants in the state over FY2017 to FY2026, for $425.5 million, which puts Illinois 8 of 54 among states. Among Illinois classes this one ranks 2 of 39, and the location quotient of 1.05x sits close to the national weight. The median loan is $347,750, or 1.12x the class's national median, and the middle half spans $149,250 to $644,250. None of the cell's core measures differs from both Illinois and the class by our margin, so the record's value lies in timing, lenders and the gap between floor and ceiling.

Losses that come in the first years

Among the 340 Illinois loans that funded in FY2017 to FY2021, 5.9% have since been charged off, and 4.7% were lost before the five year mark, so most losses here have come early. That floor is close to Illinois across classes and to the class nationally, and it will only rise. Cancellation after approval took 11.9% of the FY2017 to FY2024 approvals; the ceiling rises to 15.0% once loans not yet disbursed are counted as cancelled, a spread a lender should note on recent approvals.

Two large banks, two kinds of book

With 156 loans for $44.2 million, The Huntington National Bank is the largest 7(a) lender, while Byline Bank has 90 loans for $82.0 million, a smaller count of larger credits. Village Bank and Trust, National Association (35 loans), U.S. Bank, National Association (28 loans, $3.3 million) and Midland States Bank (19) follow. SBA 504 adds 100 loans to the 696 under 7(a), led by SomerCor 504, Inc. (45 loans, $29.2 million) and Small Business Growth Corporation (38 loans, $31.1 million). Franchise operators account for 52.8%. Cook County has 348 loans, then DuPage (73), Will (55), Lake (52) and Kane (39). Counts have held between 62 and 96 a year; FY2023 stands out, with 82 loans for only $28.3 million, while FY2026 brought 65 loans for $49.9 million.

What an Illinois quick service study has to prove

With early losses the main risk, the study must be honest about the opening years. Demand should come from the trade area itself, whether a Cook County storefront or a suburban pad in DuPage or Will, with the competing brands mapped and the drive through or delivery share stated. Cost has to separate build out, equipment and franchise requirements. Test debt service coverage against first year sales and a labor cost at today's wage levels, not a mature store's margin. For a 504 purchase, the appraisal should give both the leased fee value with the brand in place and the value of the building empty.

SBA codes each of these loans by the industry its borrower reported; the class carries no other limitation line, and its rates are cohort floors.