SBA 504 Auto Repair Shop Feasibility Study in Nevada

Mechanical repair ranks third of 39 among Nevada's 504 classes, a high position, though the state is 14th on loans counted for the class. The 31 loans total $19.8 million. The median is $566,000, 1.39x the nationwide 504 median for car and truck repair, and the middle half stretches from $287,000 to $857,500. Franchised loans are 12.9%, which is more than in Arizona or Michigan and suggests brand-name service chains among the borrowers.

Clark County and the development companies

Nevada State Development Corporation holds 20 loans and $11.0 million, and The Mortgage Capital Development Corporation 8 and $7.2 million. The second shows a much higher average loan, so larger shops go to it. The list is a holder register, not a grade. Clark County has 19 loans, Washoe 5, Carson City and Elko 2, and Churchill, Douglas and Eureka 1 each. Las Vegas dominates, but the presence of Elko and Eureka counties shows work in rural mining towns, where the shop may be the only one for miles.

By year

FY2017 had 3 loans at $2.1 million, then 2, 4 and 3. FY2021 had a single loan of $276,000. FY2022 returned to 4, FY2023 had 2, FY2024 had 3, and FY2025 reached 6 loans and $3.5 million, the highest count. FY2026 had 3 loans for $2.0 million. The recent increase is modest and consistent with a class that grows slowly.

Rates and class limits

No cancellation or charge-off percentage is shown for Nevada, as the cohorts are small. A heavy-duty truck shop cannot be told apart from a passenger-car garage in this class. Body, paint and interior work, glass, oil changes and other repair are outside the class.

A Nevada shop study

Test the service mix and the number of bays against the vehicle population and competing shops, and check whether the site draws local trade or highway traffic. Technician supply is a real constraint in a state with a large tourism payroll, so wages and retention deserve a section. Equipment and lifts are major costs. Because 504 funds the building, the appraisal should show value as a garage and for other commercial use, and coverage should be tested on a slow quarter.