Quick Service Restaurant Feasibility Study in the Riverside-San Bernardino-Ontario, CA Metro Area

Riverside against the national picture

Volume in Riverside reaches 303 approved loans for limited-service restaurants, carrying $141.4 million gross, within the FY2017 to FY2026 file. The middle half of applicants drew amounts between $172,400 and $557,500. Compared with the country, limited-service restaurants fill about the same share of Riverside lending, a location quotient of 0.96x. A typical loan, by the median, is $329,000, 1.06x of the national median for the class, in this cell, so loans run larger here. In rank terms, Riverside is 14 of 779 across the country's metros and micros, while the category is second of the 39 classes counted for Riverside.

Who holds quick service restaurant loans around Riverside

The 504 holders for quick-service restaurants are led as follows: CDC Thin Business Finance Corp. leads at 5 ($5.7 million); behind it come The Mortgage Capital Development Corporation (5 loans). For 7(a) loans in Riverside, 31 loans sit with Bank of Hope, 19 with U.S. Bank, National Association and 15 with The Huntington National Bank. Of the Riverside restaurant approvals, 282 fall under 7(a) and 21 under 504. Franchise-affiliated applicants make up 50.8% of quick-service restaurant loans in Riverside. Each name listed is the holders today of the loans in SBA's own records, so the list shows current holders, and it is silent on who first decided or what any holder requires.

Where in Riverside and when

161 loans, the whole count, fall in Riverside County, CA for quick-service restaurants. The yearly record peaks in FY2017 at 38 approvals and $10.5 million, and bottoms out in FY2020 at 17 approvals and $9.1 million.

What the loss and cancellation rates permit a reader to say

Charge-offs stand at 8.3% by the data cut within 133 disbursed Riverside loans from FY2017 to FY2021, for now, a floor that may climb; 4.5% came within five years of approval. Riverside should be read as a county-based figure: SBA's county of the project, linked by name to the metropolitan list of July 2023, decides which approvals count toward Riverside. On cancellations, Riverside limited-service restaurants show 11.8%, a floor, for a reader, for approvals of FY2017 to FY2024; counting undisbursed loans as lost leaves the same 11.8% at the upper end.

Testing a limited-service restaurants project in Riverside

First of all, Riverside demand has to be tested: delivery platforms and commissions, and brand strength if franchised. Lending history of 303 approvals reflects what lenders have done for limited-service restaurants, and says little about any one address. The coverage test should assume a late initial stretch, since Riverside shows quick-service restaurant approvals that did not run as approved. Value questions for quick-service restaurants in Riverside include leasehold value on a short term and equipment against real estate. On cost, drive-through lane work and equipment and signage rules must appear in the budget for limited-service restaurants, as filed, which can then be viewed next to the $172,400 to $557,500 range lenders in Riverside have used.