SBA 7(a) Coffee Shop Feasibility Study in Utah

Credit unions among the lenders

Utah coffee shops and snack bars borrowed $59.9 million in 193 loans under SBA 7(a) across FY2017 to FY2026, and no single measure was flagged by our test, so treat this as a baseline for lenders and borrowers. The $235,000 median is 1.04x the nationwide coffee-shop figure, so Utah sits almost exactly at the norm, and typical loans run from $75,000 to $454,700. Utah ranks 14 nationally, and the class is 3 of 39 inside Utah. Franchise brands hold 47.2% of the loans, and the class has grown steadily: 10 loans in FY2017, 23 in each of FY2023 and FY2024, 29 in FY2025 and 36 in FY2026.

Banks, credit unions and Wasatch counties

Zions Bancorporation, National Association has 42 loans worth $11.1 million. America First Federal Credit Union holds 18 worth $7.2 million, Mountain America FCU 16 worth $3.4 million, and Central Bank 12 worth $3.6 million. Two credit unions in the top three mean a coffee owner in Utah has options beyond banks. The listing reflects SBA's holder field only. Salt Lake County has 61 loans and Utah County 57, Washington 22, Davis 21, Weber 11, Cache 6, Tooele 5, Uintah 4, and Carbon and Grand 1 each. The Wasatch Front counties account for the bulk, and St. George, in Washington County, stands as the one southern market.

After approval

Cancellations run at least 7.0% for the FY2017 to FY2024 group and up to 7.8% counting loans still undisbursed. Of 67 loans funded in FY2017 to FY2021, 7.5% are charged off to date and 4.5% were charged off by year five, both of them minimums. The small cohort makes these figures sensitive to a few loans.

What a Utah coffee shop study has to test

A Utah coffee plan should not borrow national per-capita demand; it should test sales with local evidence and show what else draws customers, such as food, tea, specialty drinks or a drive-through. Count competitors on the corridor, the commuter and student traffic and the drive-through demand, which runs strong along Wasatch Front roads. Franchise units, which dominate this cell, must model royalty and advertising charges. Costs against a $235,000 median should itemise build-out, equipment and opening inventory. Show coverage on a slow first year. The business and the lease are what an appraiser values, so term and renewal rights matter.