SBA 504 Quick Service Restaurant Feasibility Study in North Carolina

North Carolina quick service restaurant lending: dollars and loan size

In North Carolina, quick service restaurants took 50 loans under SBA 504; gross North Carolina approvals total $44.6 million from FY2017 through FY2026. $741,500 is the North Carolina median, and the middle half of quick service restaurants loans stretches from $497,000 to $1.1 million. Against the national quick service restaurants median under SBA 504, the North Carolina median stands at 1.16x, larger than the nationwide quick service restaurants book carries. Franchised borrowers hold the larger part of the quick service restaurant book, a share of 50.0% in North Carolina.

For SBA 504 loans to quick service restaurants, North Carolina stands at rank 11 among states, while within North Carolina the class ranks 2 of 39. FY2019 was the North Carolina high point, 8 loans and $6.0 million together, and FY2026 lists 2 loans worth $3.8 million. North Carolina's 504 fast-food loans fund the building and equipment behind a franchise unit, with a franchise share of 50.0% across the cell's borrowers, and the program view differs from the blended class.

At the head of the North Carolina holder list is Business Expansion Funding Corporation: 29 loans and $25.2 million. Further North Carolina holders include Carolina Business Capital, Inc., which holds 14 loans valued at $11.9 million and 504 Capital Corporation, which holds 5 loans valued at $5.3 million. Business Expansion Funding Corporation heads North Carolina's list in SBA's file on 50 loans: a record of quick service restaurants loans held, rating no lender. The North Carolina loans cluster in Gaston, which has 6; Wake has 5 and Guilford has 4. Further counts include Mecklenburg 4, Union 4 and Forsyth 3.

What the North Carolina outcome figures leave out

For North Carolina quick service restaurants approved by FY2024, 17.8% or more ended in cancellation, and as high as 24.4% if undisbursed loans count as cancelled. As for charge-offs, funded loans in North Carolina are too few, and silence is not a rate. Financing without SBA never enters North Carolina's tables.

Testing a North Carolina quick service building

Because a 504 loan finances the real estate, price land, building and equipment apart and show the owner-occupied unit covering both pieces of the structure. Count traffic at the site near Gaston, then test what a drive-thru can capture at the hours that matter. Franchise status shapes cost and risk: read the franchisor's disclosure. Food cost, labor and royalty payments leave whatever remains to cover a loan near $741,500. An appraiser values a single-purpose building on what another operator could pay.