SBA 7(a) Coffee Shop Feasibility Study in Connecticut

Cancellation leads the Connecticut picture

Connecticut coffee shop and snack bar approvals up to FY2024 were cancelled at 22.2% or more, and the ceiling is identical, so the loans that did not close were not simply waiting for funds. The loans are small: the median is $102,700, only 0.46x what coffee shops borrow nationally, and the middle band runs from $50,000 to $296,000. SBA recorded 69 loans worth $16.4 million.

Connecticut is 31st among states for the program's coffee shop loans, and within Connecticut the class ranks 9 of 39. Franchise-affiliated borrowers account for 29.0% of loans. The largest holder by count is Manufacturers and Traders Trust Company, with 15 loans worth $2.5 million. Santander Bank, National Association holds 7 worth $2.0 million, a much larger average, while TD Bank, National Association holds 6 worth only $200,000 and Liberty Bank 5 worth $700,000. Those are SBA's holder records, which say nothing of any bank's appetite for a cafe.

Where the loans sit

The regional breakdown uses planning regions, and the Capitol region leads with 17 loans. Hartford and Western CT follow with 8 each, New Haven and South Central CT with 7 each, and Fairfield and Greater Bridgeport with 5 each. At the other end of the series, FY2022 shows 1 loan, worth $125,000, while FY2026 shows 18 loans worth $7.3 million, by far the busiest.

Loan Analytics withholds the charge-off rate here, because Loan Analytics only shows a rate once 30 or more loans stand behind it, and the early funded cohort has fewer. The blank is not a zero, and it gives no ground for saying Connecticut cafes perform well or badly after funding.

Tests for a Connecticut cafe project

The high cancellation rate makes readiness the first question: is the lease signed, are permits and the equipment order in hand, and does the owner's own cash match the plan? After that, the study should count customers at the exact corner, measuring commuter flow in the morning, nearby offices or campuses, and the cafes within walking distance. Revenue should be built from transactions and an average ticket at each daypart. With typical loans near $102,700, the budget is a small fit-out and equipment package, so the lease term must be long enough to repay the improvements. If the shop is a franchise, show the royalty and the required build standards. Cover the payment in a slow first winter as well as a strong season.