Restaurant Feasibility Study in the Vallejo, CA Metro Area

Vallejo: full-service restaurant lending

For Vallejo, from FY2017 through FY2026, SBA's records hold 36 full-service restaurant loans, carrying $27.1 million in gross approvals. In Vallejo, full-service restaurant lending ranks 1 of 39 among the asset classes; Vallejo sits at 133 of 821 against all metro and micro areas on full-service restaurant loans. Vallejo's 1.17x location quotient gives full-service restaurant more weight locally. Loan size is where Vallejo stands apart: median $569,250. The central half of Vallejo loans lies between $250,000 and $994,250, and the median is which sits at 2.07x against the national class median. Full-service dining leads the local asset classes at 1 of 39, and the median of $569,250, at 2.07x, is the metric that sets Vallejo apart. The location quotient of 1.17x shows only a mild tilt toward restaurants, so the story here is the size of each loan and not the number of them.

By program in Vallejo, 31 loans fall under SBA 7(a), 5 under SBA 504. Vallejo's franchise share is suppressed. Among the Vallejo holders the SBA 7(a) table lists Bank of Hope at $2.7 million over 5 loans, and BMO Bank National Association is the holder of 5 SBA 7(a) loans, $1.5 million in all. Vallejo's holder entries show today's holders only. Vallejo applicants learn nothing of lender standards here. All 36 loans sit in Solano County, CA.

Vallejo: years, floors and limits

Vallejo can show only some years: FY2017 records 5 loans totalling $3.6 million; FY2018 shows 8 loans totalling $3.1 million; FY2024 records 7 loans worth $9.3 million. In FY2020, Vallejo shows 0 loans and $0. Not published for Vallejo: FY2019, FY2021 to FY2023, FY2025 and FY2026. The years held back for Vallejo are not zeros. Vallejo's cancellation rate: not given, short of 30 loans. The charge-off rate in Vallejo: suppressed, short of 30 loans in the cohort. Vallejo uses Loan Analytics' own minimum. Vallejo's FY2017 to FY2021 group is too small. Vallejo uses the July 2023 list. Each loan reaches Vallejo by way of its county. Vallejo leaves out unmatched loans.

Vallejo: what to test

Vallejo sponsors must explain why the project needs a loan near or above $569,250 when the national class median is far below it. That means testing the building or conversion cost, the kitchen equipment, the seating plan and the sales per seat the room must reach, plus the trade area around the address. Covers should be conservative, with a ramp before the dining room matures. The appraisal will weigh the going concern as well as the premises, so the sales forecast must be one an appraiser can test.