SBA 504 Quick Service Restaurant Feasibility Study in Massachusetts

The Massachusetts quick service restaurant (SBA 504) book at a glance

$28.5 million in gross dollars, spread over 58 loans in the 504 program for quick service restaurant projects in Massachusetts, is what SBA authorized in Massachusetts from FY2017 to FY2026. Standing: 9 in the Massachusetts SBA 504 quick service restaurant approvals, and 5 of 39 among Massachusetts's own asset classes. The median quick service restaurant loan in Massachusetts is $414,000; against the national median for quick service restaurant loans under SBA 504, 0.65x is the ratio, so Massachusetts projects take smaller loans than their peers elsewhere. From $262,000 up to $618,750 lies half of the loans across Massachusetts. 3.4% of these Massachusetts loans went to franchised businesses. Because no single metric across the 58 Massachusetts quick service restaurant loans, the $414,000 median included, sets this page apart, its lenders, counties and years carry the weight instead.

Where the Massachusetts loans sit

The certified development companies with the most Massachusetts quick service restaurant loans are Granite State Economic Development Corporation at $9.6 million across 26 loans, Bay Colony Development Corporation at $7.0 million across 13 loans and New England Certified Development Corporation at $5.4 million across 7 loans. Read the 26 loans and $9.6 million for Granite State Economic Development Corporation with care: SBA lists each Massachusetts loan's current holder, so a Massachusetts name above could have taken over a quick service restaurant note rather than writing it. Massachusetts's quick service restaurant loans sort by county as follows: Barnstable with 10, Middlesex with 9, Suffolk with 9 and Norfolk with 6. The yearly pattern for Massachusetts is clear: approvals peaked at 12 loans, worth $5.6 million, in FY2021, FY2026 is the newest year on file with 6 loans worth $3.7 million, and the record opened in FY2017 with 3.

Massachusetts: cancellations, charge-offs and one quick service restaurant coding limit

From FY2017 to FY2024, 9.5% or more of Massachusetts quick service restaurant approvals were cancelled after approval; a more generous count, adding undisbursed loans, is 11.9%. For disbursements between FY2017 and FY2021 in Massachusetts, any cohort of charge-offs drawn from only 58 loans is statistically thin, so we publish no Massachusetts figure for quick service restaurant and imply no zero. Readers must treat these Massachusetts rates, drawn from 58 loans, as floors, not as final outcomes. No separate coding limit is recorded for quick service restaurant, but SBA sorts each Massachusetts borrower under a single industry code, so among 58 loans a quick service restaurant operator may sit in a different class.

Testing a Massachusetts quick service restaurant loan application

A Massachusetts quick service restaurant deal under 504, one of 58 on record, puts two lenders behind the project, a certified development company and a bank lender, so the quick service restaurant study is tested on combined payments and on the sponsor's equity in Massachusetts. Sales for a quick service restaurant in Massachusetts tracks workday traffic, drive-through access and the strength of the brand, and the study measures them at the site. Franchise obligations and required build-out standards add cost on the Massachusetts plan, and the study carries them. Debt service coverage for Massachusetts quick service restaurant must be shown at the $414,000 median and also near $618,750, the upper end of the Massachusetts middle half, alongside a slower quick service restaurant scenario next to both. An appraiser will value a quick service restaurant from occupancy cost against revenue, so the study shows each for this site. A borrower who approaches Granite State Economic Development Corporation can use its 26 loans here as background only: SBA's totals show loans, not any terms.

Take the Massachusetts quick service restaurant history above, 58 loans, as background: a quick service restaurant study from Loan Analytics for Massachusetts, signed by Daniel Smith, MAI, for quick service restaurant, does the project-level Massachusetts testing, and nothing here promises Massachusetts approval of a quick service restaurant loan.