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

Mechanical repair for cars and trucks stands 5 of 39 within Virginia, and the state is 21 on the 7(a) count. The program approved 184 loans worth $88.1 million across FY2017 to FY2026. Median notes of $250,000 run 1.39x the benchmark for these shops across the country, with $100,000 to $549,350 as the middle half. Franchise flags mark 14.7% of loans. Virginia shop owners therefore take larger notes than owners elsewhere, and the program serves a mix of independents and brand-affiliated shops.

Lenders, places and years

Manufacturers and Traders Trust Company holds 23 loans, worth only $2.1 million, while Live Oak Banking Company holds 12 worth $12.0 million, a far larger average. Atlantic Union Bank has 11 worth $2.9 million, along with two lenders with 10 loans each: Northeast Bank ($2.4 million) and Wells Fargo Bank National Association ($2.2 million). SBA reports the holder, not the lender's standards. FAIRFAX has 25 loans, VIRGINIA BEACH CITY 18, CHESTERFIELD and HENRICO 14 each and PRINCE WILLIAM 12, which means Northern Virginia, Richmond and Hampton Roads all appear. Approvals reached 30 loans and $16.5 million in FY2025 and 25 and $19.0 million in FY2026, after a low of 7 in FY2022.

Floors

Of FY2017 to FY2024 approvals, 14.7% at the least were cancelled, and 15.5% on the wider count. Funded in FY2017 to FY2021 were 77 Virginia loans, and 3.9% or more are charged off to date, the very same 3.9% as inside five years, so the losses all came early. Both are lower bounds; open loans can still fail.

Scope and the study to commission

The class counts mechanical repair of cars and trucks, with truck service inseparable from car repair in the data. Collision, paint, glass and lube businesses fall outside it. A Virginia study should count vehicles and their age near the site, assess competing independents and dealer service departments, and test technician supply and pay, since staffing sets capacity. With a median above the national figure, it should itemize equipment and any property purchase, and test the payment through a slow first year. The property appraisal should be kept separate from the shop's goodwill. SBA is the source for program terms.