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

Vermont's 7(a) repair shop cell is among the smallest loan environments in the whole set. At a $47,500 median, Vermont loans are 0.26x the nationwide 7(a) mark for repair shops, and the middle of the 28 loans runs from $25,000 to $131,625. Over the ten fiscal years from FY2017 the loans sum to only $4.7 million. Vermont is 46th on loans counted, yet mechanical repair ranks third of 39 inside the state, so a very small economy leans on this trade. Garages in towns without a second option are often the only repair choice for miles, which makes the owner's health and succession a real underwriting question. No loan was franchised.

Counties and the absent lender list

The lender table is empty, so no lender is named. Chittenden County has 7 loans, Orange and Washington 4, Orleans 3, Rutland, Windham and Windsor 2, and Addison, Bennington and Essex 1 each. The list spans the Burlington area and the rural Northeast Kingdom, so shops in towns of very different sizes borrow.

Zero years and a spike

FY2017 had 6 loans, but only $190,000, a typical loan near the median. FY2018 had 2 and FY2019 3. FY2020 had none, FY2021 4 loans and $609,400, FY2022 none again, FY2023 4 loans and $1.7 million, FY2024 5 loans and $1.8 million, FY2025 a single loan of $25,000, and FY2026 3 loans and $217,500. The jump in FY2023 and FY2024 is a rise in dollars per loan against the earlier pattern of micro-loans.

Rates and class boundaries

Vermont's small cohorts block any cancellation or charge-off figure, and the blanks do not mean zero. Diesel and gasoline work are merged in the class; collision, glass and lube shops are excluded.

A study at this scale

Where a loan is only a few tens of thousands of dollars, the feasibility question is practical: a used lift, a few tools, a lease for a small bay, and working capital for parts. A study should test the number of vehicles in a rural trade area, seasonal swings with winter driving and inspection cycles, the mechanic's own record and certifications, and a comparison with other shops. It should include a plan for what happens if the owner is absent for a season. For larger loans in the later years, add real estate and equipment value, and coverage on a slow year.