SBA 7(a) Liquor Store Feasibility Study in Florida

Rank 14 nationally, 17 at home

Liquor stores are an ordinary corner of Florida's SBA lending: the class ranks 17 of 39 inside the state, even though Florida stands 14 among states for 7(a) liquor store loans. Totals reach 120 loans and $74.0 million across the ten fiscal years. A median of $467,500 is 1.06x of the nationwide mark, very close to the norm, and half the loans run from $150,000 to $892,250. Franchising barely exists in this trade, at 3.3% of loans. The cell is therefore defined less by size or structure than by the geography and by a lender list that includes some surprising dollar patterns.

Dollar patterns in the lender table

Most loans, 13, are held by TD Bank, National Association, yet only $1.6 million in dollars. Another 8 loans, worth $3.1 million, sit with The Huntington National Bank. Pinnacle Bank, with just 6 loans, holds $8.3 million, the biggest dollar sum among the names listed, which points to bigger tickets. Northeast Bank holds 6 loans worth $1.8 million, and Newtek Bank, National Association also holds 6 for $1.8 million. These holder figures come from SBA's files and say nothing about how any lender underwrites. Palm Beach County leads the counties with 11 loans, Hillsborough and Miami-Dade follow with 10 each, Broward has 8, and Lee 7.

Floors on losses and cancellations

Cancellation after approval reached at least 9.9% through FY2024, or 11.0% with unpaid commitments counted as cancelled. Of 56 loans in the early funded cohort, 1.8% are charged off to date, though inside five years the share was 0.00%, so the one loss came later than five years after approval. Both are floors; open loans keep their risk.

Tests for a Florida liquor retailer

Analysis starts with licensing, because the permit and any quota or distance rule decide whether the location can operate at all. Then comes demand: residents, tourists and the trade of nearby restaurants and events within reach of the site, against competing stores and the grocery and big-box chains that also sell alcohol. Gross margin and inventory turnover drive profit, so the model should show opening inventory as a use of funds and the working capital needed to restock. Where the loan includes real estate, the appraisal must support the property. The typical ticket matches the national norm, so unusually large requests deserve a clear reason. Debt service coverage should hold even if sales soften or a competitor opens nearby.