SBA 504 Auto Repair Shop Feasibility Study in Washington

Above-norm loans and a high-ranked class

Mechanical repair takes 4 of 39 places in Washington's 504 class ranking, and the shops borrow more than their national peers: a $545,500 median is 1.34x the nationwide 504 benchmark, with ordinary loans clustered from $371,500 to $763,500. SBA approved 34 loans over FY2017 to FY2026 for $20.8 million. The state ranks 13 among states by loan count. Franchise share is 0.00%, so independent owners account for the whole class.

Development companies at similar scale

Evergreen Business Capital shows 13 loans and $6.7 million. Northwest Business Development Association shows 11 loans and $6.3 million, and Ameritrust CDC shows 9 loans with $7.2 million, the largest average of those listed. SBA lists the present holder, so these entries are about holdings. King, Pierce and Spokane counties have 6 loans each, Snohomish 3, and Benton, Cowlitz, Skagit, Whatcom and Yakima 2 each, with Clark at 1, so both sides of the Cascades appear.

Years and withheld rates

The first years were quiet, with 1 loan in FY2017 and 1 in FY2018. FY2020 had 5 loans and $3.4 million, FY2021 had the peak of 8 loans and $4.1 million, and FY2024 fell back to one loan, $833,000. The last two years each show 5 loans. Cancellation and loss measures are missing from this cell, and missing is not zero. Heavier truck work shares a code with passenger-car repair, while body, paint, glass, lube and remaining repair trades fall in other classes.

The study behind a Washington garage loan

A 504 loan buys a building, so the study should treat the property as the centrepiece. It should explain why the site suits a repair shop: zoning, stormwater and fluid-handling rules, bay count, turning room and visibility. It should price land and construction or purchase against comparables. Operating evidence comes next: how many vehicles are registered nearby, which shops and dealers compete for them, billable hours per technician and technician pay. Because loans in this record run above the national norm, the study should justify the scale of the project, then show the payment covered in a slow first year. The appraisal should say what the building would bring if sold to a different business. Washington's mix of metro and eastern counties means the study should say whether the shop competes on convenience or on specialist skill, since that choice shapes the site.