SBA 7(a) Quick Service Restaurant Feasibility Study in Connecticut

Connecticut quick-service restaurants: small loans, high attrition

Limited-service restaurants are the third-ranked class in Connecticut, and Connecticut sits 27 among states for the program, with 190 approvals across FY2017 to FY2026 worth $54.8 million. The ticket is the metric that differs. A median of $150,000 is only 0.51x the nationwide benchmark, and the middle half starts at $50,000 and ends at $411,850, so Connecticut quick-service borrowers take about half what their peers do. Franchised units account for 29.5% of loans.

Lenders and regions

Santander Bank, National Association leads with 33 loans and $6.8 million; Manufacturers and Traders Trust Company follows at 29 loans and $4.3 million. Live Oak Banking Company and Liberty Bank each hold 14, with $11.9 million and $1.5 million, and TD Bank, National Association holds 11 worth $1.1 million. Live Oak's average ticket is far larger than the others. The table reflects SBA's holder records. The state is reported by planning area in this record: Capitol has 36 loans, South Central CT 33, Western CT 25, Fairfield 22, Hartford 16, Greater Bridgeport 14, New Haven 13, Naugatuck Vly 8, and Lower CT River Vly and Southeastern CT 5 each.

Floors are high and the cohort is small

Cancellation reaches at least 17.2% of approvals through FY2024, or 18.8% when undisbursed loans are counted. The early cohort holds only 51 loans, and it shows 9.8% written off so far, a floor, with 3.9% lost inside five years. A few failures move percentages in so small a group, so treat them as rough floors, and remember that loans still open can add to them.

Testing a Connecticut quick-service unit

Site comes first: traffic, visibility, access and the pull of nearby employers or commuter routes. A study should test sales against the franchisor's required investment, royalties, rent and labor, set the build-out beside a ticket near $150,000, and quantify the working capital for the opening months. Because so many approvals fail to close, confirm the path to closing: signed lease, permits, and equipment quotes. Show coverage at sales below plan. The appraisal will look at business value and any real estate pledged.

Connecticut's record is reported by planning area rather than county, so a borrower should match the site to the nearest area in the table and confirm that the comparable evidence in the study comes from the same part of the state.