SBA 504 Auto Repair Shop Feasibility Study in Florida

Third in the nation, average in size

Third place among states belongs to Florida for SBA 504 mechanical repair, on 90 approvals worth $50.0 million across FY2017 to FY2026; at home, though, repair shops are only 8 of 39 among financed classes there. A median loan of $413,000 is 1.01x of the nationwide figure, essentially the national norm, so this cell is distinguished by volume and not by ticket. Half of loans fall between $252,250 and $667,000, and 10.0% carry a franchise flag. Shops of this kind buy their buildings and heavy equipment through the program, and the lender table lists the development companies that sponsored the loans.

Sponsors and counties

Florida Business Development Corporation sponsored 40 loans and $20.2 million, Florida First Capital Finance Corporation, Inc. 37 and $21.4 million, and Sunshine State Economic Development Corporation 9 and $4.8 million. Together they account for nearly the whole book. SBA's records describe who sponsored each loan and imply nothing about how a company decides. Miami-Dade County leads with 14 loans, Duval has 9, and Orange, Pasco and Pinellas have 7 each, with Manatee at 6 and Hillsborough at 5.

Cancellation is the issue to read

Roughly a fifth of approvals dating from FY2017 to FY2024 never moved forward, with a floor of 20.3% and a ceiling of 24.6% once unpaid commitments are added. As for credit, the 30 loans that funded early show 0.00% charged off by either yardstick; that rests on a thin group and stays a minimum while loans remain open.

What a Florida repair study has to test

A shop's value is in its technicians and its bays, so the study should count lifts and stalls, expected billable hours per technician and the labor rate nearby customers will bear. Hiring skilled mechanics is a recurring constraint, which makes a wage schedule and a retention plan more than a formality. Since the program funds property and equipment, the appraisal of the building and land and a quoted equipment list are central, and environmental condition matters for any site that has stored fuel, oil or solvents. With so many approvals lapsing, a borrower should hold permits, insurance and equity in hand before asking. Debt service coverage should hold if car counts drop for a few months.

On classification: car and truck mechanical work are bundled in this class, while collision and paint, glass, lube and miscellaneous automotive trades are counted elsewhere, so such a plan belongs on those other pages.