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

Nevada shops borrow nearly twice the national amount

In Nevada, mechanical repair shops for cars and trucks take SBA 7(a) loans with a median of $350,000, 1.94x the median nationwide for the class, and the ratio is what most distinguishes it from the state and national records. The bulk of loans, setting aside the smallest and largest quarters, span $100,000 to $759,875. The state logged 94 loans worth $50.3 million, ranks 30 among states by count, and places the class at 5 of 39 within Nevada. Franchise ties account for 10.6% of loans.

Charge-offs are severe. Among the 35 early-funded loans in Nevada repair, charge-offs reach 14.3% or more to date and 8.6% or more within five years. These are floors, since loans still open can only add to them, and the cohort is small enough that every default is visible. Cancellation after approval had a floor of 13.6% for loans approved through FY2024, with an equal ceiling. A lender should read this as the cell's defining feature.

What the class covers

Truck service is not split from car repair here, because truck repair shops are indexed to the same code as car repair. Left out of the class are body and paint shops, glass installers, lube stops and all other automotive repair, so a collision shop or quick-lube site belongs to different pages. A study should say which kind of shop it examines.

U.S. Bank, National Association holds 24 loans worth $8.3 million. Plumas Bank holds only 9, yet they total $7.4 million, a far higher average. Zions Bancorporation, National Association holds 6 worth $3.7 million and Wells Fargo Bank National Association 5 worth $1.2 million. These are records of holdings, not of lending standards. Clark County has 60 loans and Washoe 26, with Nye at 3 and Humboldt at 2. Approvals reached 21 in FY2025 and 14 in FY2026, each with $9.4 million.

Tests for a Nevada repair shop

A shop earns from labour hours and parts margin, so the study should show bay count, technician headcount and the billable hours per technician that the market supports. Wages are usually the largest cost, and a shop that cannot staff its bays cannot earn. The study should describe the customer base, whether fleet, commuter or tourist traffic, rival garages and dealership service bays, plus the signage and access of the site. Equipment such as lifts and diagnostic tools makes up much of the budget, and environmental compliance on a repair site can add cost, so address both. With losses this high in the record, run a case in which the owner takes longer to reach full bay utilisation, and show what repays the loan if the owner leaves the business.