Restaurant Feasibility Study in the Grand Rapids-Wyoming-Kentwood, MI Metro Area

Grand Rapids-Wyoming-Kentwood: $63.3 million in full-service restaurant loans

Approved dollars of $63.3 million back 178 full-service restaurant loans in the Grand Rapids area, FY2017 through FY2026. A midpoint loan is $130,650; the middle half spans $50,000 to $449,750. Compared with the national median for full-service restaurant, Grand Rapids-Wyoming-Kentwood stands at 0.48x, placing it below it.

Where Grand Rapids, MI stands, 1 of 39 in class

By program the split reads 163 for 7(a) against 15 for 504, with 7(a) far ahead. Franchised units took 10.1% of the loans. Full-service restaurants lead the area's mix of 39 classes, and nationally Grand Rapids stands 39th of 821 for the class. The location quotient is 0.92x, so the class is a little lighter in Grand Rapids than nationally. The leading counties are Kent County, MI with 114 loans, Ottawa County, MI with 35 and Barry County, MI with 13.

Who holds the 178 Grand Rapids, MI loans

The busiest shown year was FY2019, 31 loans and $9.4 million; the quietest was FY2026, 8 loans and $10.0 million. Grand Rapids 7(a) holders, ranked by loans: 102 loans and $19.5 million at The Huntington National Bank; 9 loans and $3.2 million at Fifth Third Bank; 6 loans and $2.5 million at ChoiceOne Bank. SBA lists The Huntington National Bank as holder of 102 loans; the entry says what the bank holds here, not what it requires. For 504, Great Lakes Commercial Finance with 10 loans for $6.3 million and Michigan Certified Development Corporation with 5 loans for $3.7 million lead the Grand Rapids list. The floor under cancellations in Grand Rapids is 15.3%, the ceiling 19.1%, over the FY2017-to-FY2024 approval years. No charge-off rate is printed, because too few of the 178 loans fall in the disbursed cohort, and a withheld rate is not zero.

Testing a full-service restaurant project in Grand Rapids, MI

Before debt is sized, the study weighs lunch and dinner traffic, the number of competing full-service rooms and household dining spend, since those set revenue. Cost comes next: the budget must carry occupancy, kitchen and bar equipment and opening inventory, each priced against local quotes. Coverage is tested at $130,650, $50,000 and $449,750 alike, because the record spans that range. Appraisers will value the operating business, the kitchen equipment and the lease separately, and the study should follow that division. The 178 loans frame the study and nothing more; earlier approvals do not settle a new request.

What the Grand Rapids, MI figures cannot say about full-service restaurant

Each of the 178 loans is assigned to the area by project county. A county such as Kent County, MI counts toward the area when its name appears in the July 2023 delineation. Cancellations are measured on approvals of FY2017 to FY2024, and the charge-off measure uses FY2017 to FY2021 disbursements.