SBA 7(a) Coffee Shop Feasibility Study in Illinois

A Cook County class that grew late

Illinois coffee shops and snack bars took 239 loans through SBA 7(a), $84.6 million in total, between FY2017 and FY2026. At $220,000 the median is nearly level with the national figure, at 0.98x, and the central half spans $80,500 to $481,000. The class stands 10 of 39 in Illinois, and the state is 11 for the program. Franchise loans are 39.3%. The map is dominated by Cook County, which has 108 loans against 20 in DuPage and 16 in Will.

Cancellations: a wide band

For FY2017 to FY2024 approvals, cancellations stand at 7.4% as a floor and 11.1% as a ceiling, which means a sizeable block of Illinois coffee approvals was still unfunded at the data cut. Of the 68 loans in the FY2017 to FY2021 cohort, 5.9% are charged off to date and 2.9% did so inside five years. A cohort this size is small.

Lenders

Topping the table, The Huntington National Bank has 59 loans and $17.6 million, with Byline Bank (16 loans, $10.8 million), First Mid Bank & Trust, National Association with 14 and $2.4 million, First Bank of the Lake with 9 and $6.5 million, and Newtek Bank, National Association with 9 and $1.6 million. First Mid's dollars per loan are small. SBA names the current holder, so the table shows books.

A recent surge

Annual approvals ran at 12 to 18 through FY2022, then jumped to 39 in FY2023 and 49 in FY2025, which brought $22.5 million. The program has therefore added most of its Illinois coffee loans very recently, and those loans have had the least time to show charge-offs.

Testing an Illinois coffee concept

A study should test morning and afternoon traffic at the site, the competition from established chains, the lease, and the build-out, where the equipment package for espresso and food service can be a large part of the cost. If the shop is franchised, royalties and territory should be modelled. Coverage must hold when sales ramp slowly during opening months, and an appraiser should recognise how little of the value is real estate. The surge in recent approvals means the market may be more crowded than the older loan history suggests.