SBA 7(a) Coffee Shop Feasibility Study in Louisiana

Half franchised, small tickets, shortest cancellation list

Louisiana coffee shops and snack bars show a clean pre-closing record and a franchise-heavy mix. The 7(a) program approved 67 loans in the state during the ten years, totalling $18.3 million, and 50.7% carry a franchise flag. The median loan is $150,000, which is 0.67x of the nationwide figure, with the bulk of loans spanning $100,000 to $346,050. Louisiana ranks 32 among states for the class, and coffee shops are 7 of 39 among financed classes in-state. Pre-closing attrition is low, a floor of 5.8% for approvals through FY2024, identical on the stricter count.

Holders and parishes

The holder list is short and flat: Newtek Bank, National Association heads it with 6 loans worth $550,000, and the next entry holds 5 loans worth $2.5 million, a much larger dollar total. SBA's holder records are the source, and nothing in them rates a lender. Orleans Parish has 15 loans, Lafayette 9, Jefferson and Saint Tammany 7 each, and Bossier 5, with Calcasieu at 4 and several parishes at 3.

The rate we do not publish

The charge-off rate for this cell is withheld, because the group of loans funded early falls short of the count needed to publish a percentage. Do not read the absence as a good record or as zero; no outcome can be stated.

What a Louisiana coffee shop study has to test

A cafe depends on morning and afternoon traffic, so the study should rest on counts at the intended address, people who live or work within easy reach, and the competing shops already there. Average ticket, transactions per day and labor hours need support from comparable units. A loan of this size mostly pays for fit-out, machines and the lease deposit; written quotes should back each. About half of borrowers use a franchise, so royalties, required suppliers and remodel schedules need to sit in the margin. Weather and seasonal swings can affect foot traffic, so a downside case deserves space in the model, and the payment should still be covered in it. Working capital for the first months is part of the request, not an afterthought. A lender reading the work should also see how the owner's own schedule covers the long opening hours coffee requires, since the first year often relies on the owner behind the counter.