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

Idaho garages: third on the state's list, tiny in the national one

Mechanical repair shops rank third among the 39 classes that SBA financed in Idaho under the 7(a) program, a high standing for a trade that rarely makes headlines. Between FY2017 and FY2026 the file holds 108 loans and $35.9 million in gross dollars, though on the national table Idaho sits at 28 by loan count. The median loan of $144,500 is 0.80x the median for the class nationally, and half of all loans fall between $28,750 and $352,500, a range wide enough to cover a tool-and-lift startup and the purchase of a long-running shop with its building. Only 3.7% of loans carry a franchise flag, which leaves the trade largely in independent hands.

Credit unions, banks and the Boise corridor

Zions Bancorporation, National Association is the biggest holder with 17 loans, and Glacier Bank has 16. Idaho Central CU holds 13, which makes a credit union the third-largest holder of Idaho garage paper, and U.S. Bank, National Association has 12, with Columbia Bank at 6. These are today's holders per SBA, and no conclusion about lending standards should be drawn from the order. Ada County dominates with 36 loans, then Bonner and Bonneville with 8 each, Kootenai with 7 and Canyon with 6, so the Boise area leads while the panhandle and the east also appear. Annual counts moved between 8 and 17, and FY2025 shows 17 loans worth only $2.9 million.

Outcomes in the Idaho repair class

Cancellations ran to at least 14.8% of the FY2017 to FY2024 Idaho approvals, a figure unchanged by adding loans never disbursed. The seasoned cohort has 46 loans, and 4.3% of them are charged off to date, the same 4.3% inside five years, which suggests that the losses that did occur came early. These are floors, not settled loss rates; any loan still open may add to them.

Testing a repair shop plan in Idaho

A study for an Idaho shop begins with the supply of work: the vehicles registered nearby, how old that fleet is, and how many rival bays operate nearby, whether independent or dealer service departments. Technician availability is often the limiting factor, so the staffing plan, wage level and training need to be shown before revenue is forecast. Equipment and lifts explain most of the cost for a leased site; an owned building changes the picture, and the loan then sits closer to the upper end of the middle half. The payment has to be covered with a slower first year and with parts costs rising. The class here is mechanical repair only: body and paint work, glass, oil change and other automotive services belong to other classes, and truck repair shops are indexed together with car repair, so the figures cannot be narrowed to cars alone.