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

Texas auto repair at a glance

In Texas the repair loan count puts the state second nationally under 7(a), and the median loan is high. The file for FY2017 to FY2026 holds 782 loans worth $497.2 million, with a median of $350,000 that is 1.94x the program's median for repair shops nationwide. Half of the loans fall between $129,100 and $817,875. Franchise share is 18.8%, and repair shops stand 8 of 39 among Texas classes. The typical Texas repair loan is thus close to twice the national figure.

Lenders, counties and yearly volume

PNC Bank, National Association holds 60 loans worth $19.3 million, The Huntington National Bank 45 worth $42.6 million, Newtek Bank, National Association 44 worth $23.8 million, Wells Fargo Bank National Association with 43 and $10.6 million and Live Oak Banking Company 38 worth $33.4 million. The dollar figures show how differently these books are shaped: some lenders hold many small loans, others fewer and larger. This is SBA's record of loans each holds or held, not a view of their requirements. Harris County has 172 loans, Dallas 98, Tarrant 72, Bexar 53 and Collin 48. Approvals peaked at 123 in FY2025.

Cancellations and a high charge-off floor

Cancelled approvals reach 11.0% at the least across FY2017 to FY2024, or 11.4% with undisbursed loans counted. The charge-off figures are high: of 347 loans disbursed in FY2017 to FY2021, 9.8% are already charged off, and 7.2% failed inside five years. Because open loans may yet fail, a lender should treat repair shops here as a class with real loss history.

What counts as auto repair here

Heavy-truck shops cannot be pulled apart from car repair, so they sit in the same record. Collision work, glass, oil change and any other automotive repair are outside the class, so a body shop or quick lube is not measured on this page. A borrower planning a mixed shop should read the figures as covering the mechanical share only.

What a Texas repair shop study has to test

A repair shop study should start with technician supply and bay productivity. The study should test how many certified technicians can be hired and retained, labour hours billed per bay per day, the parts margin, and the mix of fleet and retail customers. Visibility and access need checking, and the lease or purchase price against the typical loan of about $350,000. A replacement reserve for equipment and diagnostic tools belongs in the cash flow. Given the loss floors above, coverage of the debt payments must hold on a slow ramp of billed hours, and any real estate appraisal will depend on the shop's income.