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

A Wisconsin repair class at national size

Over FY2017 to FY2026 Wisconsin mechanical repair shops took 232 loans from SBA 7(a), $85.2 million in all. A median of $180,000 matches the national class median at 1.00x, and the central half stretches from $50,000 to $427,650. The class stands 3 of 39 within Wisconsin, and the state is 14 for the program. Franchise loans are 3.0%, so this is a book of independent garages.

The floors

In Wisconsin the cancellation floor for loans approved FY2017 to FY2024 is 12.7%, with an identical ceiling. Charge-offs are low: among 108 loans from FY2017 to FY2021, 2.8% have been charged off, and the printed figure inside five years is 0.00%. Loans still open can deteriorate, so these are minimums, but the pairing of cancellations and low loss is the signature of this cell.

Credit unions at the top

Summit CU holds 25 loans and $3.9 million, the most of any lender here, with Bank First, N.A. at 16 loans and $6.6 million, U.S. Bank, National Association at 15 and $4.5 million, Associated Bank National Association at 14 and $2.8 million and The Huntington National Bank at 13 and $6.2 million. The list shows holdings as SBA records the present holder. Waukesha County has 22 loans, Milwaukee 20, Dane 17, Washington 15, and Brown and Sheboygan 12 each.

What the class includes

Mechanical repair of cars and trucks forms one group here, because the code leaves truck service inseparable from car repair. Body and paint shops, glass work, oil change outlets and other automotive repair are outside it, so the figures do not describe a collision centre or a quick-lube business.

Years

Approvals were highest in FY2017 at 39 loans and have held between 15 and 25 since, with 24 loans and $12.4 million in FY2024.

Testing a Wisconsin shop

A repair shop study should test the number of bays against technician supply, the number of cars and trucks in the trade area, the mix of fleet and retail customers, and the cost of equipment such as lifts and diagnostics. Say plainly whether the project buys the real estate, since a garage building has a limited alternative use, and show coverage after a winter slowdown. The appraisal should separate the going concern from the property.