SBA 7(a) Liquor Store Feasibility Study in Indiana

Indiana liquor stores: big for the class, and Indianapolis first

Indiana liquor stores stand out for loan size. The median is $549,450, a ratio of 1.25x to what liquor retailers borrow nationally, and our tests marked that median as distinct from the Indiana all-class record and from the national class record. The central band of loans runs from $310,250 to $1.1 million, so even the smaller loans are sizable, probably because inventory, a licence value and often real estate come bundled. The cell holds 86 loans and $75.6 million, FY2017 to FY2026, Indiana is 17 among states, with liquor stores placed 10 of 39 among classes at home. Franchising is absent, at 0.00%.

Holders, counties and rhythm

Seven loans each are credited to KeyBank National Association ($10.5 million), Merchants Bank of Indiana ($8.7 million) and First Bank Richmond ($3.0 million), and 6 each to Byline Bank ($9.4 million) and First Merchants Bank ($6.3 million). The list is flat: no single holder dominates, which differs from many cells. SBA's holder entries should not be read as statements about any institution's practices. Marion County carries 40 loans, far ahead of Lake with 6 and Hamilton and Vanderburgh with 5 each. Annual counts swing widely, from 14 loans and $11.0 million in FY2018 to 2 loans and $1.8 million in FY2025, and then to 13 loans and $20.6 million in FY2026.

Floors on cancellation and charge-off

Cancellations took 8.5% or more of approvals through FY2024, and 9.9% on the broader reading. Of the 45 loans funded early, none shows a charge-off yet: both measures read 0.00%, to date and across five years. That deserves caution in a class where licence transfers and inventory values can mask trouble, and loans still open can alter both numbers.

A study for an Indiana liquor store must start from the permit. State alcohol licensing limits who may hold one, how they transfer and what a location may sell, so the study should say how the permit will be obtained or assigned and what it adds to value. Sales per square foot, gross margin by category, shrink and the competition from grocery and convenience outlets set the revenue case; Local rules on hours and on distance from other sites can affect siting. Inventory is a large share of the project and should be separated from goodwill and real estate. Coverage should be shown with weaker volume, since this class borrows at a high median. The appraisal will treat the licence, stock and property as distinct assets. Approval is not implied.