SBA 7(a) Grocery Store Feasibility Study in Virginia

Virginia grocery store lending: dollars and loan size

In Virginia, grocery stores took 53 loans under SBA 7(a); gross Virginia approvals total $29.9 million from FY2017 through FY2026. $270,000 is the Virginia median, and the middle half of grocery stores loans stretches from $100,000 to $912,000. Against the national grocery stores median under SBA 7(a), the Virginia median stands at 0.87x, smaller than the nationwide grocery stores book carries. A franchise listing appears on 3.8% of the loans in this grocery store cell for Virginia. The figures above speak for Virginia alone.

On SBA 7(a) loan counts for grocery stores, rank 18 belongs to Virginia; the class sits at 14 of 39 in Virginia's own table. Volume crested in FY2021: 7 loans, $4.2 million; and FY2026 records 6 loans for $4.7 million. Grocery borrowers under 7(a) in Virginia can buy an existing store, fund inventory and equip refrigeration with one instrument, so this program slice shows that mix.

SBA lists Manufacturers and Traders Trust Company as the leading holder for Virginia grocery stores, with 14 loans worth $827,900. Virginia holders appear as SBA reports them, Manufacturers and Traders Trust Company first; each holds or held grocery stores loans here. By area, Alexandria City leads with 8 loans, then Fairfax with 7 and Arlington with 4. The tail of the Virginia top ten includes Loudoun 4, Prince William 4 and Augusta 2.

Cancellation and loss figures for Virginia grocery stores

Looking at Virginia grocery stores approved through FY2024, a cancellation floor of 11.4%, with the same 11.4% as a Virginia ceiling once undisbursed loans count. The loss side is blank: too few Virginia loans were funded, leaving losses unknown. Conventional loans in Virginia stay outside this file.

What a Virginia grocery study must prove

Trade area comes first. Draw the real catchment around Alexandria City, count the supermarkets inside it, and show what the new store carries that they do not. Margins are thin, so test shrink, labor and utilities, because refrigeration alone can erase a forecast built on an average basket. Inventory is a large use of funds, and the budget should separate opening stock from equipment and from the building within a typical $270,000 request. Many independents depend on one wholesaler, so supply terms should be spelled out, not assumed. An appraiser sees retail space with heavy refrigeration, and the cost of converting it to another use limits collateral value.