Feasibility Study Data for the Salinas, CA Metro Area

Volume and loan size in Salinas

619 loans for projects in Salinas, CA over FY2017 and FY2026 total $485.7 million gross. Separately, Salinas stands at 148 of 928 within all metropolitan and micropolitan areas on approvals. For context, $350,000 is the middle loan; the central half extends from $150,000 to $935,500. The median in Salinas stands at 1.68x against the country's median, pointing to tickets that sit ahead of the national norm. Separately, Salinas holds only loans from its own counties, and never the mix a statewide page shows: 619 loans altogether.

The program mix and who lends in Salinas

533 loans under 7(a) accompany 86 SBA 504 loans. Here, 11.3% of all approvals involve a franchise brand here. In addition, under 7(a) lending, the leading institutions by count are Monterey County Bank at 67 loans for $35.6 million, West Coast Community Bank with 66 loans worth $52.3 million, and Wells Fargo Bank National Association booking 51 loans worth $10.4 million. Worth noting: in 504, the busiest CDCs on loan count rank as The Mortgage Capital Development Corporation with 30 loans worth $44.0 million plus Bay Area Employment Development Company at 21 loans and $17.8 million. These names are taken from SBA records on 619 loans; they record loans approved only, never what lenders require in Salinas.

Asset classes and counties in Salinas

55 for full-service restaurant, 39 in hotel and motel, gas station and truck stop with 32; and limited-service restaurant at 25 lead the named classes by approvals. Beyond that, 349 loans lie apart from every named class, so the 619-loan file reaches beyond what the classes show. Here, 5 loans in rehabilitation and therapy clinic within Salinas are too few to show a trend. Separately, Monterey County holds all of 619 approvals, which makes area and county are one market. For context, taking each approval year, FY2017 opens at 90 loans and $68.8 million; no later year tops it, then FY2026, a year yet to finish, ends the count at 67 loans and $45.2 million.

What the floors allow in Salinas

9.5% among FY2017 through FY2024 approvals in Salinas have been cancelled before funding, which is a floor; 11.2% marks the ceiling counting undisbursed loans. Here, 3.2% among FY2017 through FY2021 disbursed loans in Salinas were charged off to date, a floor, across a cohort of 313 loans. Separately, a five-year figure stays withheld for Salinas, so the to-date floor alone is printed. Read every rate printed here as a lower bound, since loans written lately received scant opportunity to cancel or default, across 619 loans. Also, each area here means the CBSA which includes every loan's county of project, per July 2023 boundaries as issued; every county are paired using the name, and any loan with a county does not map is omitted from all areas without exception. Next, in a class or out of one, each 7(a) and 504 approval inside the area is included toward its $485.7 million total.

Testing a project in Salinas

Within Salinas, a proper study aimed at a site begins with the specific operator, instead of the 619-loan file. Then, market demand in Salinas heads the list: does Salinas's neighbourhood demand support the turnover planned, against competitors around Monterey County? Then, the local median is 1.68x of the median nationwide, so costs here could run ahead; test the real scope against figures from local contractors. Beyond that, the coverage test ties revenue to cost for Salinas: forecast income measured on the debt payments, and a case of falling revenue. Also, then the appraisal caps the work for Salinas: collateral and as-complete value must cover the borrowing asked for. An applicant carrying an arm's-length feasibility study of Salinas, before approaching the lenders above, addresses these rates in advance; approval is for the underwriters and SBA for Salinas, and a study cannot change that.