SBA 7(a) Liquor Store Feasibility Study in Colorado

Larger tickets than the national pattern

Colorado liquor stores finance themselves under SBA 7(a) with unusually large checks, and its median is the figure that separates the cell from Colorado's all-class record and from liquor stores across the country. A median of $555,500 is 1.26x the national figure; the central half of loans spans $350,000 to $964,775. The FY2017 to FY2026 files hold 666 loans for $502.1 million gross. Colorado is 2 nationally for this program and class, and liquor stores are 2 of 39 in Colorado's own ranking, so this is a major line of small business lending in the state. Franchise brands are almost absent at 0.15%.

One bank above all

Hanmi Bank holds 360 of these loans, worth $300.4 million, far ahead of any other name. Behind it come Bank of Hope with 44 loans and $28.9 million, U.S. Bank, National Association with 22 and $9.6 million, PCB Bank with 17 and $7.7 million, and VelocitySBA, LLC with 16 and $9.2 million. This is SBA's holder field, a count of loans on each institution's books, not a view of what the bank requires of a borrower. Geography: Arapahoe County has 111 loans, Jefferson 106, Denver 88, Adams 84, El Paso 56, Boulder and Weld 36 each, Douglas 28, Larimer 27 and Pueblo 20. Annual volume was lowest at 44 in FY2020, then rebounded to 87 in FY2021 and again in FY2025.

Floors for Colorado liquor store loans

Cancellations come to at least 8.6%, and the ceiling is the same 8.6%. Of 303 loans funded across FY2017 to FY2021, 3.3% stand charged off now and 0.66% were charged off by year five. Open loans may yet fail, so treat each as a minimum. The cancellation and charge-off figures are given as they stand.

What a Colorado liquor store study has to test

A median this size means the study should state whether the deal is an acquisition or a fit-out and split the price into inventory, goodwill, equipment and any real estate. Licensing rules decide whether the purchase can close, and the study should leave that question to counsel while showing the timeline. Next is the trade area: households and incomes close by, other outlets and grocery stores in range, and the road traffic that supplies customers. Debt service coverage should rely on conservative gross margin and a fair owner salary, with a weaker-sales case beside the base. With a ticket this large, the appraisal and the seller's records deserve close reading.