SBA 7(a) Coffee Shop Feasibility Study in New Mexico

Albuquerque's county and a thin state

Coffee shops and snack bars in New Mexico drew 36 approvals between FY2017 and FY2026, worth $9.0 million in all. Bernalillo County alone holds 15, with San Juan second at 6, and Eddy and Lea at 3 each, so the cell mostly describes a single metropolitan area. The state ranks 42 by count among states, but coffee shops sit 6 of 39 in New Mexico's own list, which makes them a steady local borrower.

Ticket size, brands and places

The median loan of $157,250 reaches 0.70x against coffee shops elsewhere, and the central half runs from $76,050 to $324,500. Franchise brands account for 30.6%, a minority of loans, which suggests many independent roasters. First among holders is Western Commerce Bank (6 loans, $2.1 million); trailing it is Wells Fargo Bank National Association, a national bank with just 5 loans in a smaller sum, $483,000. The year with the most loans was FY2018 at 6 loans and $904,600, tied by FY2022 at 6 loans and $1.3 million.

Floors

New Mexico shows 13.3% of the earlier approvals cancelled, matched by the ceiling. Losses cannot be reported, for the early funded loans are few; the rate is held back and is not zero.

What a New Mexico coffee study should test

A coffee business in New Mexico lives on repeat daily customers, so the study should measure foot and car traffic at the site and the share of sales before midday. Altitude and climate shift demand for hot and cold drinks across the year, and the study should show a seasonal calendar. Tourism supports some shops while a local base supports most, and the plan should say which applies. Independent roasters differ from franchise units in sourcing and fixed costs, and the model must state both. Buildout, espresso equipment and the lease are the likely uses of a loan near the $157,250 median, and the study should price them from bids. Rent as a share of sales, labor at peak and the opening ramp decide whether debt service is met. A loan to buy an existing shop requires rebuilt earnings, and a lender will want the lease transfer terms.