SBA 7(a) Liquor Store Feasibility Study in New York

New York liquor stores: a small ticket in a top-three state

New York ranks 3 among states for 7(a) liquor store loans, with 557 approvals from FY2017 to FY2026 totalling $258.1 million, and the class stands 5 of 39 inside the state. Its signature is the loan size. A median of $200,000 is only 0.45x the national 7(a) median for liquor stores, the one metric that sets New York apart, and the typical New York loan sits within $60,000 to $500,000. No loan in the record is franchised (0.00%). Package stores here look like owner-operator businesses financed in modest amounts.

Holders and geography

Manufacturers and Traders Trust Company holds 99 loans worth $16.0 million, Provident Bank holds 78 worth $42.6 million, TD Bank, National Association 62 worth $8.3 million, KeyBank National Association 29 worth $6.6 million, and NewBank 26 worth $16.9 million. Provident's larger average is the notable contrast. SBA's entries identify the present or former holder and nothing further. New York County has 61 loans, Suffolk 57, Erie 49, Nassau 47, Kings 40, Queens and Westchester 39 each, Monroe 35, Bronx 16 and Richmond 12.

Cancellation and charge-off

Cancelled approvals reach a floor of 14.4% through FY2024; with a ceiling of 15.3% once undisbursed loans are counted. Charge-offs are the quieter side: the 260 loans funded in FY2017 through FY2021 show 2.3% written off to date and 1.5% within five years, both minimums while loans remain open.

What a New York liquor store study has to test

The license comes first. A study should confirm that the state license can be secured for the site and which local distance rules apply, then test sales per square foot against competing stores nearby. Inventory is the largest working capital item, so the budget must show how much stock the loan will carry beside fixtures and any acquisition price, compared with a ticket near $200,000. Margin on spirits, wine and beer differs, so the product mix should be forecast. Debt service coverage should survive weak seasons, and an appraisal will separate the license-dependent business from any real estate. The 7(a) program is a guaranteed loan from a private lender.

New York County, Suffolk and Erie each record dozens of loans, so a store in any of them has local precedent, while a store elsewhere must borrow evidence from the nearest listed county and say so in the study. Lenders will read that choice of comparables closely.