SBA 7(a) Beauty Salon Feasibility Study in South Carolina

South Carolina salons: national-sized loans, one dominant small-note holder

South Carolina's 7(a) salon lending sits right on the national line in loan size. The tally for FY2017 through FY2026 is 66 SBA approvals and $17.7 million; the median of $87,500 is 1.01x the national figure, and most loans fall from $25,000 to $257,950. Within South Carolina salons are 9 of 39, and nationally the state is 29th by count. Franchised shops are 10.6% of the loans. So loan size does not distinguish the cell; the holder mix does, together with the missing loss rate and the geography.

TD Bank and the thin dollar totals

TD Bank, National Association holds 24 of the loans but only $847,500 of dollars, an average smaller than any other holder in this cell. Wells Fargo Bank National Association holds 7 for $937,000, and Countybank holds 6 for $3.2 million, a much higher average. Holders shown are those of record; the rows are silent on how any bank lends. Greenville leads the counties with 14, then Charleston with 11, with 7 each in Beaufort and Lexington. Dollars swung from $125,000 in FY2020 up to $5.8 million in FY2023, then $3.5 million in FY2026; a few large loans move the total.

Cancellation and the withheld rate

Cancellation measures 8.2% by floor and ceiling alike. A loss rate for the earliest funded loans is left out because the group is too small, which is not a zero.

Testing a South Carolina salon

Because the typical loan matches the national norm, the study cannot lean on local distinctiveness; it must show that this particular shop is sound. Itemise stations, chairs, equipment, retail stock and leasehold work against the middle band. Demand comes from the actual catchment: resident households, nearby employers, tourist traffic on the coast plus salons and suite rentals competing nearby. Stylists are the product, so retention, commission versus booth rental and the owner's own chair time should be spelled out. Show the payment covered through a slow opening, and show what happens if two stylists leave. Lenders weigh sponsor equity and lease length because salons carry little hard collateral, so both should be documented. A request near the top of the band, $257,950, should say what the extra money buys, whether a second location, a larger suite or an acquisition of an existing salon.