SBA 7(a) Liquor Store Feasibility Study in Kansas

Kansas package stores

In Kansas, liquor stores took 74 loans across FY2017 to FY2026, $22.9 million in all, with a $252,600 median that is 0.57x the national reading for the class. The middle half reaches from $100,000 to $476,500. The class is seventh of 39 in the state, and Kansas is 19th among states by count. Franchising is nil: the share is 0.00%. Compared with the Ohio liquor file on a sibling page, Kansas tickets are more than double, which shows how much package-store financing varies by state.

Johnson County and the holders

Johnson County has 30 loans, Douglas 9, Shawnee and Wyandotte 5 each, Leavenworth and Sedgwick 4 each, and Ellis, Greenwood and Riley 3 each. Sedgwick's low rank against Johnson is notable for the state's largest city. The holders are close together: U.S. Bank, National Association with 7 loans ($1.4 million), OakStar Bank and UMB Bank, National Association with 6 each ($3.5 million and $2.2 million), and Landmark National Bank with 5 ($1.0 million). OakStar's average is the highest.

Floors

Cancellation after approval stands at 9.0% on both the floor and the ceiling. In the 38 early loans that funded, charge-offs to date reach 2.6% as a floor, while the five-year view is 0.00%. Loans still open could add to both. Yearly approvals fell from 11 loans and $2.3 million in FY2017 to 8 and $3.7 million in FY2021 and 5 and $1.9 million in FY2026.

A study for a Kansas package store

Licensing is the first condition for a liquor store, and whether a permit is available for the location is for the state and local authorities, not for a market study; the study should list it as a condition and move on to the commercial case. It should measure the trade area, compare competing stores and grocery outlets, and project sales by season with a gross margin that covers payroll and the loan payment. Stock is a big use of money here, so the budget should show how much of a loan near $252,600 goes to stock, to fixtures and to any building purchase. The appraisal will treat inventory and goodwill separately from the real estate.