SBA 7(a) Liquor Store Feasibility Study in Wisconsin

One bank at the center of Wisconsin liquor lending

Byline Bank holds 17 of the 75 liquor store loans approved under 7(a) in Wisconsin from FY2017 to FY2026, with $19.3 million of the $40.6 million total, a far larger share than any other holder. Nicolet National Bank follows with 6 loans and $1.9 million, The Huntington National Bank with 5 and $3.2 million, and Community State Bank with 5 and only $704,000. These are SBA's holder records and nothing here assesses a lender. Milwaukee County has 28 loans, Brown 7, Walworth 5, Dane 4 and Racine 3, so Milwaukee County is the center of gravity.

Smaller than the national ticket

The median loan of $340,000 is 0.77x of the nationwide figure, and half of the loans range from $100,000 to $838,250. Wisconsin ranks 18 among states, while liquor stores place 12 of 39 inside the state. Franchising is rare, at 2.7% of loans, so almost every borrower is an independent retailer.

Charge-offs that appear late

Of 37 early-funded loans, a floor of 5.4% has been written off to date, yet the five-year measure shows 0.00%, so the losses came after the fifth year. Cancellation reached at least 14.8% of approvals from FY2017 to FY2024, or 16.4% on the stricter count. Treat both as minimums while loans stay open.

What a Wisconsin liquor store study has to test

A package store sells a regulated product, so the study opens with the license: who may hold it, whether the municipality caps the number, and how the transfer works if the loan buys an existing store. Demand comes from households and traffic near the site, competing stores and grocery chains that sell alcohol, and the drive-time to the nearest rival. Margin depends on product mix, and inventory is a major use of funds, so the budget should show opening stock and the cash needed to restock in the first months. Because loans in Wisconsin run below the national median, a request well above it deserves explanation. The late charge-offs suggest a lender should look for cash reserves that last beyond the first year, and coverage should survive a competitor opening nearby. Should the borrowing include the building, its appraised value has to hold up. Finally, because the franchise share is so small, the study cannot lean on a brand's system data, and should instead document the owner's own retail experience, supplier relationships and plan for pricing against the large chains.