Restaurant Feasibility Study in the Burlington-South Burlington, VT Metro Area

Very small restaurant loans in Chittenden County

Burlington-South Burlington is a small record: 45 loans to full-service restaurants, $6.2 million in all, across the ten fiscal years. Median size is $80,000, only 0.29x the national mark, between quartile edges of $25,000 and $195,700. Restaurants lead locally at 1 of 39, post a location quotient of 1.21x, and place 108 of 821 once all areas are ranked. Chittenden County, VT carries 32 loans.

All 7(a)

Every one of the 45 loans is 7(a), with 0 under 504, so no borrower here financed a restaurant property through the 504 program. Franchise share is withheld. Because no 504 loans appear, any plan involving building purchase would be unusual for this market and should be justified in the study.

Two banks with equal counts

Community National Bank (VT) and TD Bank, National Association each appear as 7(a) holder of record on 10 loans, but the dollars differ: $1.5 million against $657,600. That is an SBA tally and not a comment on either bank. Years that print are FY2017 with 6 loans and $1.0 million, FY2018 with 10 and $1.0 million, FY2019 with 6 and $733,800, FY2021 with 0 and $0, and FY2024 with 5 and $1.7 million. The other years are withheld.

Blanks to respect

Burlington has 45 loans and still no published cancellation or charge-off rate; neither blank is zero. Chittenden County reaches the Burlington total by name, from the 2023 area list.

What a Burlington restaurant study has to test

In a small, tourist-and-college market, the study should split demand into locals, students, and seasonal visitors, and test the slow months directly, since long winters and summer peaks shape cash flow. Rent in downtown Burlington differs from the suburbs, and many borrowers here need only tens of thousands of dollars for a fit-out. Run coverage at $80,000 and near $195,700. The appraiser should price the equipment and leasehold improvements, since little real estate is likely to stand behind such loans. Liquor licensing, local sourcing costs and the supply of line cooks in a small labor market are further items the study can settle with real quotes.