SBA 7(a) Beauty Salon Feasibility Study in Kentucky

Kentucky beauty salon lending: dollars and loan size

SBA lists 57 SBA 7(a) loans to beauty salons in Kentucky between FY2017 and FY2026, with $9.6 million in gross dollars approved in Kentucky. Half the Kentucky loans sit at or below $60,000; the middle half of beauty salons spans $27,700 up to $200,000. Set beside the nationwide beauty salons median under SBA 7(a), Kentucky reads 0.69x, a lighter lean for beauty salons in Kentucky. A franchise listing appears on 12.3% of the loans in this beauty salon cell for Kentucky.

Kentucky beauty salons take rank 34 against other states under SBA 7(a), and 9 of 39 when set against Kentucky's other classes. FY2024 was the Kentucky high point, 11 loans and $702,700 together, with FY2026 at 9 loans, $2.1 million. Salons are small, so 7(a) in Kentucky is mostly equipment, leasehold work and working capital, and this program slice shows what a borrower in that position typically asked for.

At the head of the Kentucky holder list is U.S. Bank, National Association: 12 loans and $447,200. Next come Community Trust Bank, Inc. (9 loans, $655,500) and PNC Bank, National Association (5 loans, $995,700). In Kentucky, U.S. Bank, National Association is the lead name on 57 loans, SBA's file recording beauty salons loans each holds or held. Geographically, Jefferson stands first with 19, Fayette second with 8, and Boone third with 4. Lower on the list are Kenton 4, Campbell 3 and Scott 3.

Kentucky outcomes: cancellations, charge-offs and code limits

Within Kentucky, FY2017 to FY2024 approvals report 7.3% as the least that was cancelled, and as high as 9.8% if undisbursed loans count as cancelled. The loss side is blank: too few Kentucky loans were funded, and a Kentucky gap is not to be read as zero. Only loans in SBA's Kentucky files appear.

Testing a Kentucky salon plan

Chairs earn only when someone sits in them, so staffing comes first: name the stylists, how they are paid and what keeps them. Whether the shop takes a commission or collects booth rent changes revenue and cost alike, and the plan should say which. With a median of only $60,000, most of these loans fund plumbing, ventilation and stations, so the budget should run line by line. Test payments at realistic chair occupancy and retail sales, including a poor month near Jefferson. Salon finish work adds little for the next occupant, so collateral is mostly the shell, and licensing for stylists and the shop should be confirmed before opening.