Restaurant Feasibility Study in New Hampshire

Granite State restaurants borrow modestly

New Hampshire's full-service restaurant loans are small. The median is $127,750, just 0.46x the class median nationally, and that loan size differs from both New Hampshire's lending across industries and sit-down restaurants elsewhere. Approvals in the middle half range from $50,000 to $298,500. Restaurants are nonetheless the state's top SBA class, 1 of 39, at a location quotient for restaurants of 1.09x; the state ranks 26 of 54 for the class nationally, on 316 approvals worth $88.2 million from FY2017 to FY2026. The picture is one of small loans.

Granite State's development company and the 7(a) banks

SBA 504 has a real presence despite the small loans: 59 loans against 257 under SBA 7(a), with 46 of those, worth $23.0 million, sitting with Granite State Economic Development Corporation. Bay Colony Development Corporation follows with 7. The 7(a) holders are Eastern Bank with 28 loans, TD Bank, National Association with 27, Primary Bank with 16, Meredith Village Savings Bank with 15 and Camden National Bank with 14. Franchising hardly figures at 0.95% of loans. Rockingham County leads with 96 loans and Hillsborough with 71, with Grafton at 42 and Strafford at 30. FY2018 was the busiest year with 54 loans; FY2025 brought the largest dollar total, $11.9 million.

Floors and the questions for a study

Cancellation took at least 10.0% of New Hampshire restaurant approvals from FY2017 to FY2024, or 11.2% if undrawn loans are treated as cancelled. Loss experience is mild: 2.5% of the 157 New Hampshire restaurant loans from the FY2017 to FY2021 cohort were charged off, and only 0.64% inside five years, although both are floors that can rise as open loans age. A New Hampshire restaurant study should measure year-round and seasonal demand, count competitors by concept within the trade area, cost the kitchen, fit-out and any building work against a loan near $127,750, and show debt service coverage in the shoulder months. Where the 504 program finances the building, the appraisal will rest on its value as restaurant or retail property, and the study should give the appraiser rent and sales evidence for that location.

No class limitation applies to full-service restaurants. Both outcome rates on this page are floors.