SBA 7(a) Beauty Salon Feasibility Study in Mississippi

A bigger franchise share than most salons

Mississippi salon loans are tiny, and a sizeable minority belong to franchise systems. A $62,000 median stands at 0.71x the nationwide level, and typical tickets are bracketed by $26,475 and $144,050. Franchise affiliation reaches 17.6% of loans. The 34 approvals on file, FY2017 through FY2026, add up to just $3.7 million, which puts Mississippi at 39 among states by loan count, even as salons stand 10 of 39 in Mississippi's internal class ranking. A salon is a small enough business that a few thousand dollars of equipment or a chair buy-in can be the whole project.

Peoples Bank and the county list

Peoples Bank appears with 6 loans and $335,100, the lone lender in the list, and the entry reflects the present holder in SBA's records and nothing about the bank's preferences. Harrison County leads with 4 loans. Covington, Hinds, Lee, Madison and Simpson each have 3 loans, and Forrest, Lincoln, Lowndes and Rankin each have 2. The geography runs from the Gulf coast to the Delta fringe and central cities, with no single metro in charge.

Rhythm of approvals

Counts begin at 6 loans and $314,200 in FY2017, dip to a single $75,000 loan in FY2019, and rise to 5 in FY2023 and 8 in FY2025, when dollars reached $1.2 million. FY2026 shows 1 loan of $25,000. Neither cancellation nor loss is quantified for Mississippi salons, because SBA's early cohort is thin; read the blank as unknown.

What a Mississippi salon file has to show

A salon file is about stylists and clients. It should show the number of chairs, who rents them or works for wages, and the clientele each person can bring, along with the neighbours, parking and passing trade of the site. Service prices, retail sales and the appointment pattern across the week should produce the revenue line. With loans this small, equipment, plumbing and light renovation are the likely uses, and the file should price them line by line. A lender will also want evidence of the owner's own experience and a first-year case that covers the payment after a slow opening. If a franchise brand is chosen, its fees and required purchases belong in the cost base. Where a franchise brand is involved, a lender will want the franchise agreement and the brand's own openings in comparable Mississippi towns set beside the owner's plan.