SBA 7(a) Liquor Store Feasibility Study in Tennessee

The SBA 7(a) book for liquor stores in Tennessee

Tennessee liquor stores received $25.6 million in gross SBA 7(a) dollars across 46 Tennessee loans between FY2017 and FY2026. Half the Tennessee loans sit at or below $408,200; the middle half of liquor stores spans $204,550 up to $781,750. Relative to liquor stores nationwide under SBA 7(a), the Tennessee figure is 0.93x, a downward tilt for liquor stores in Tennessee. Franchised borrowers account for 4.3% of the liquor stores loans in Tennessee.

Counting loans, Tennessee holds rank 24 among the states for liquor stores, and inside Tennessee this class takes 13 of 39 among SBA 7(a) classes. Volume crested in FY2025 at 12 loans and $4.8 million, and FY2026 lists 3 loans worth $2.6 million. Many liquor store loans fund the purchase of a going business with its inventory, so a study should test how much of the request is goodwill and stock.

U.S. Bank, National Association appears first among current Tennessee holders, at 10 loans and $3.9 million. Behind it stands The Huntington National Bank with 8 loans worth $3.3 million. These loans sit with those lenders as SBA reports them today, out of the 46 Tennessee loans. By area, Shelby leads with 14 loans, then Davidson with 4 and Knox with 4. Further down the list stand Jefferson 3, Sullivan 3 and Loudon 2.

Outcomes and data limits for Tennessee

Within Tennessee, FY2017 to FY2024 approvals report cancellations of 12.9% or more; with undisbursed loans counted as cancelled, the Tennessee ceiling stays at 12.9%. No charge-off rate is shown, because Loan Analytics withholds a rate when its funded cohort holds under 30 loans, as this one does, so nothing about losses follows. Only SBA lending is counted in Tennessee.

What a Tennessee liquor store study must prove

Licensing comes first, so confirm that the permit can transfer to the buyer or be issued for the site near Shelby. Competition is shaped by license rules and by supermarkets that sell wine and beer, so map both kinds of rival. Inventory carrying cost is a large use of funds, and a typical $408,200 loan must cover opening stock along with build-out. Spirits, wine and beer carry unlike margins, so run the payment test as though the richest category builds slowly. An appraiser separates license, inventory and building, and a license may not be collateral a lender can fully count on.