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

The smallest tickets among the repair shops

Oregon's mechanical repair loans under SBA 7(a) are strikingly small. The median is $50,000, a mere 0.28x of the nationwide level, and the central half of loans stretches only from $25,000 to $495,600. In FY2017 to FY2026 SBA approved 140 loans for $56.9 million. Oregon ranks 23 among states by count, while the class holds 4 of 39 positions inside Oregon, an unusually high place that shows how much the state's program activity rests on small trades. Franchise share is 3.6%.

Holders and places

Columbia Bank is the dominant current holder in SBA's listing with 43 loans worth $6.0 million, with U.S. Bank, National Association next on 25 loans and $5.0 million. KeyBank National Association holds 8 loans worth $1.2 million, Banner Bank 7 worth $307,900, and Enterprise Bank & Trust 6 loans worth $7.6 million, the largest average among them. Multnomah County has 25 loans, Clackamas 24, Washington 18 and Marion 17, followed by Lane with 11 and Jackson with 9. Approvals climbed to 25 loans and $7.5 million in FY2025 and 21 loans and $6.7 million in FY2026, after a trough of 8 loans in FY2019.

Cancellation and loss floors

Cancellation reached at least 17.0% of approvals through FY2024, and the share stays at 17.0% when undisbursed loans are counted. That is steep for loans this small, and it suggests many applicants drop out before closing. In the 51-loan funded cohort, 0.00% were charged off to date or within five years. A floor of 0.00% is not zero risk; it describes loans still open.

What the class includes

The industry code cannot separate truck service from car repair, so this class covers both. Not counted here: collision and paint shops, upholstery, glass replacement, quick lube bays and the broad catch-all of other automotive services, which sit in different classes.

A study for an Oregon repair shop must test whether the loan is for equipment, a lease build-out or the purchase of a building, because a median near $50,000 implies something modest. Bay count, technician hours, average repair order and parts margin determine revenue, so the study should show them against local labour costs and the shop's capacity. Competition from dealer service departments and tire chains belongs in the demand case. Technician retention is the usual constraint, and a coverage test should include a staffing shortfall. If real estate is financed, the appraisal must rest on market rent for the building rather than the shop's income alone.