SBA 7(a) Auto Repair Shop Feasibility Study in Georgia

Twice the national loan size

Georgia's mechanical repair shops borrow far more under SBA 7(a) than shops elsewhere. A median of $374,200 is 2.08x the nationwide repair-shop figure, and typical loans run from $150,000 to $776,000. The measure is notable, though our test flagged nothing in the cell, so read it as context. The record from FY2017 to FY2026 covers 232 loans and $143.4 million gross. Georgia is 14 nationally, the class sits at 10 of 39 in Georgia's order, and 15.1% of loans are franchised, a larger share than in the Midwest cells. The class pairs car and truck service under a single code and omits body, glass, oil change and other automotive repair.

Banks and metro Atlanta

Newtek Bank, National Association has 18 loans and $8.6 million, Wells Fargo Bank National Association 17 and $2.7 million, Live Oak Banking Company 11 and $13.0 million, Renasant Bank 11 and $10.2 million, and Northeast Bank 10 and $1.5 million. This table reports who holds each loan, not what any bank requires. Gwinnett County has 36 loans, DeKalb 26, Fulton 21 and Cobb 19, then Hall 10, Forsyth and Henry 8 each, Cherokee 7, and Coweta and Paulding 6 each. Gwinnett, a suburban county, outranks Fulton, which holds Atlanta itself. Approvals ranged from 14 in FY2020 to 33 in FY2021, with 27 in FY2026.

Cancellations and losses

Cancellation stands at a floor of 7.9%, and the ceiling is the same 7.9%. Across the 115 loans funded in FY2017 to FY2021, 4.3% are charged off now, the same 4.3% as at five years, so losses tend to show early. Open loans may still fail.

What a Georgia repair shop study has to test

A median of $374,200 points to projects with real estate, larger bays or several locations, not simple leased garages, and the study should state which. Start with demand: vehicle counts and age near the site, commute patterns, and the traffic on the road. Metro Atlanta has long drives and many cars, and a shop's catchment follows the major roads. Then supply: independents, dealer service departments and national chains. Technicians are the binding resource, so show how many bays can be staffed and at what wage. Cost lines should separate land, building, lifts and diagnostic equipment, and environmental compliance. Debt service coverage must hold on a slow ramp. An appraiser will value owner-occupied real estate and the business separately, and the study should give both a clear income case.