SBA 504 Restaurant Feasibility Study in Maine

Maine restaurants under 504: two holders, two counties

Full-service restaurants are the first class in Maine's SBA 504 file, and the record is dominated by York and Cumberland Counties. The file covers FY2017 to FY2026 with 66 loans and $31.5 million in gross dollars. Maine's median of $412,000 comes to 0.68x the 504 median for restaurants elsewhere, and the central half of loans runs $253,500 to $607,750, and the franchise share is 0.00%. Counted by loans, Maine is 17th nationally for 504 restaurant lending. In 504 lending the bank's first lien is joined by a development company's debenture, which points these loans toward real estate purchases or builds.

Holders from outside the state, and geography

The two holders the table lists are development companies: Granite State Economic Development Corporation with 53 loans and Southern Maine Finance Agency with 12. The larger of the two carries a New Hampshire-flavored name, so the holder of most Maine loans is not a Maine-named company. York County has 32 loans and Cumberland 17, with Lincoln at 4 and Hancock and Waldo at 3 each, so southern coastal Maine carries nearly all of it. Annual counts were 9 in FY2017 and FY2022, and 2 loans worth $613,000 in FY2026.

Low cancellation and no charge-offs

Maine restaurants saw 5.2% or more of approvals cancelled over FY2017 to FY2024, and the ceiling rises to 6.9% once loans not yet funded are written off as well. Its 33 seasoned loans carry a 0.00% charge-off floor, whether measured so far or over five years. A cohort that small with no losses is a floor and no guarantee, since open loans can still fail.

Checklist for a Maine 504 dining project

Seasonality comes first: where trade swings with visitors, a study should show the year month by month, off-season included, and the staffing needed in each. Because the loan finances property, the study has to value the building and land independently and say what another operator would pay for them. A site's parking, visibility and the zoning for restaurant use should be confirmed. Cost has to match a typical loan near $412,000 and should explain anything much higher. The payment on the bank loan and on the development company's portion has to be covered with weak winter sales. Coding raises no limitation for this cell.