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

Missouri shops borrow a little above the national mark

Missouri mechanical repair shops took 188 loans through SBA 7(a), $73.7 million, over FY2017 to FY2026. The median of $200,000 is 1.11x the national class median, and the central half starts at $100,000 and ends at $519,625. The class holds 4 of 39 within Missouri, and on rank the state sits at 19 for the program. Franchise loans account for 4.8%, so these are mostly independent garages.

Floors, and a flat charge-off pair

Cancellation reached 12.6% at the least for FY2017 to FY2024 approvals, and 13.9% with undisbursed loans counted. Among the 78 loans in the earlier cohort, 2.6% show as charged off so far and the identical 2.6% appears inside five years, which means every charge-off to date arrived in the first five years. Both are floors.

Lenders and counties

OakStar Bank leads with 21 loans and $9.9 million. U.S. Bank, National Association has 15 loans and $3.0 million, with 9 loans each for Hawthorn Bank ($1.6 million) and Legacy Bank & Trust Company ($2.0 million), and 7 for The Bank of Missouri ($3.1 million). The names come from SBA's current-holder field and describe books. Jackson County has 31 loans, Saint Louis County 25, Greene 19, Jasper 11, and Christian and Clay 10 each.

What the class leaves out

The group is mechanical repair on cars and trucks together; collision, glass, oil-change and other automotive trades sit elsewhere, so this record cannot speak for a collision centre or a quick-lube outlet.

Years

FY2021 peaked at 27 loans and $14.9 million; FY2024 followed with 25 loans and $14.3 million.

Testing a Missouri repair shop

A study should test the count of vehicles within reach of the site, the number of bays and technicians the building supports, the balance between retail and fleet work, and the cost of lifts and diagnostic tools. The study should state whether the project buys the real estate, because a garage has narrow alternative use, and show coverage through a slow quarter. Cancellation on file means the study should also prove that permits, lease and equity are ready before the approval is relied on.