SBA 7(a) Beauty Salon Feasibility Study in Ohio

The smallest salon loans in the set

Ohio salon borrowers take very small 7(a) loans. The median is $50,000, only 0.57x of the nationwide 7(a) median for salons, and it is the metric that sets this cell apart, and the central half of tickets spans $25,000 to $138,750. The program approved 454 Ohio salon loans between FY2017 and FY2026, worth $60.8 million, and Ohio holds 5 among states. Among the 39 Ohio asset classes, salons rank 4 of 39. Franchise brands took 10.8% of loans.

A single holder leads

The Huntington National Bank has 267 loans worth $27.9 million, by far the largest holder in the table, followed by U.S. Bank, National Association with 30 loans, KeyBank National Association with 16, PNC Bank, National Association with 14 and Fifth Third Bank with 10. That ordering reflects SBA's record of present holders and says nothing about any bank's practices. Franklin County has 76 loans, Cuyahoga 65, Hamilton 42, Summit 27 and Lucas 18.

Outcomes and volume

Cancellations of Ohio salon approvals reach 13.4% at the least, or 15.0% counting loans still undisbursed. Among 162 Ohio salon loans that matured into the cohort, the charge-off floor is 7.4% and 5.6% did so inside five years. Open loans may add to both. Volume was 51 loans in FY2017, fell to 29 in FY2020, and rose to 64 in FY2024, with 63 in FY2023, and 28 loans in FY2026.

Testing an Ohio salon plan

With a median near $50,000 the loan is small, so the study should look hard at the operator: licensed stylists, the book of returning clients they bring and the plan if one leaves. It should model service pricing in the local market, rent per square foot, and how many chairs are needed to carry fixed costs. Coverage of debt service should survive a slow first season, and the study should show the operator's own cash injection. Equipment, signage and initial inventory of colour and retail product can be separated into their own budget lines, so the budget shows which dollars buy durable assets and which fund the first months of operation.