SBA 7(a) Liquor Store Feasibility Study in Maryland

Hanmi and the city of Baltimore

Maryland liquor stores financed through SBA 7(a) are concentrated around Baltimore and a handful of lenders. No measure in the cell was flagged as distinctive, so the numbers give context. The files for FY2017 to FY2026 record 218 loans and $166.1 million gross, a median of $520,000 that is 1.18x the national median for the class, and typical loans from $250,000 to $958,250. Maryland is 10 among states, and liquor stores are 3 of 39 within Maryland. There are no franchise brands at 0.00%.

Lenders and counties

Hanmi Bank holds 53 loans worth $60.3 million. Manufacturers and Traders Trust Company holds 40 worth $5.4 million, PCB Bank 22 worth $14.0 million, then Open Bank ($10.7 million) and PromiseOne Bank ($8.8 million), each with 11. The dollar totals show that Hanmi and PCB make larger loans while Manufacturers and Traders makes many small ones, a pattern the holder field records without explaining it. Baltimore City has 64 loans, Baltimore County 38, Prince Georges 32, Montgomery 19, Anne Arundel 15, Howard 14, Frederick and Harford 9 each, Washington 8 and Allegany 3. The city of Baltimore alone has more loans than any county. Annual approvals peaked at 32 in FY2021 and fell to 14 in FY2024.

Outcomes

Cancellation is at least 13.9%, and the ceiling is also 13.9%. For the 101 loans funded in FY2017 to FY2021, 3.0% stand charged off today, against 2.0% by the fifth year. Each is a floor, and open loans might still fail.

What a Maryland liquor store study has to test

Liquor retail in Maryland is regulated locally, and rules differ by county, so the study should begin with the license: whether a license is open to the buyer at the site, and what the county board will ask. Baltimore City, the suburban counties and rural Maryland are different markets, so the trade area has to be described in terms of households, incomes, competing stores and traffic. For an acquisition, which a $520,000 median suggests is common, separate the price of inventory, goodwill, equipment and real estate, and test the seller's records against bank deposits and tax returns. Cancellation at 13.9% shows that closings fail, so timelines for license transfer and lease assignment matter. Coverage should rest on conservative margins and fair owner pay, with a lower-sales case. An appraiser will value the going concern.