SBA 7(a) Beauty Salon Feasibility Study in Oklahoma

Franchise salons at 16.4%, and a steady small-loan market

Oklahoma beauty salons under 7(a) are a steady, modest lending class. Fifty-five loans total $10.1 million, and the midpoint of $125,000 is 1.44x the national 7(a) salon midpoint, with the quartiles at $60,000 and $290,400. A sixth of the loans, 16.4%, are franchised. The state ranks 35 on count, and beauty salon is 10 of 39 inside Oklahoma. Annual counts hold between 3 and 9 loans a year, peaking at 9 in FY2024 with $1.5 million.

Two holders and a two-county market

BancFirst holds 8 loans worth $2.4 million, and Arvest Bank holds 7 worth $1.2 million, as SBA now lists them. Oklahoma County has 28 loans and Tulsa County 22, so those two counties account for nearly all the lending, with Cleveland at 2 and Comanche, Rogers and Wagoner at 1 each. A salon outside those metros is a rarity in this record.

Cancellations, with a wide gap

In Oklahoma, salons lost at least 12.8% of approvals to cancellation through FY2024, and up to 17.0% if undisbursed loans are written off. The space between those two figures is approvals that were still open when SBA drew the data. The loss rate is absent from the cell, as the funded cohort sat below SBA's minimum.

What an Oklahoma salon study has to test

A salon's value is its stylists and their clients. The study should list who will work in the space, whether they bring a following, and whether they rent chairs or are employees, since that changes revenue and risk. Count the salons within a short drive and compare prices for the main services. Show the number of stations, revenue per station per week and the share from retail product. A midpoint of $125,000 points to a fit-out, equipment and opening working capital, or an acquisition; itemise the plumbing, stations and inventory, and tie a purchase price to the seller's receipts. With 16.4% of loans franchised, say whether the plan is a brand unit, and cost its fees. The cancellation floor is high, so list which steps are still open, whether a lease signature or contractor quotes. Test coverage if a senior stylist leaves and takes clients.