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

A small state with a brand-heavy file

Limited-service restaurants are second of 39 classes in Delaware for SBA 7(a), with 66 loans from FY2017 to FY2026 totaling $27.9 million. Delaware is 44th among states by count, a reflection of size. The $315,250 median is 1.06x the national reading, with a central half of $70,000 to $546,450, and franchise brands account for 53.0% of loans.

Three counties

The whole file sits in three counties: New Castle with 44 loans, Sussex with 15 and Kent with 7. Sussex, the beach county, outweighs Kent, which suggests demand tied to seasonal visitors. Manufacturers and Traders Trust Company holds 17 loans for $2.7 million, and 6 loans each at TD Bank, National Association ($2.2 million) and Wilmington Savings Fund Society FSB ($2.4 million). The holder list is a record of SBA's current data and says nothing about any bank's appetite. The county mix is also worth reading carefully, because New Castle has more than twice the loans of the other two counties combined, which gives a sponsor in Kent or Sussex fewer nearby examples and a reason to document local traffic and competition directly.

Outcomes

Cancellation after approval is floored at 6.7%, with the same ceiling. No charge-off rate appears for Delaware: the early funded group has too few loans, and the page infers nothing from the blank. Approvals have grown: 5 loans and $1.8 million in FY2017, 6 and $2.5 million in FY2021, and 11 loans and $6.5 million in FY2026.

What a Delaware quick-service study tests

In a state this small, the study can be precise about its trade area. It should count the traffic past the site, whether the road serves commuters in New Castle, beach visitors in Sussex or local residents in Kent, and the competing brands within a short radius. It should show that sales cover rent and the loan payment in the off-season if the site depends on tourists. Build-out and equipment need to be reconciled with a loan near $315,250. Since a majority of loans are franchised, the study should state the brand and use the franchisor's own performance data for comparable sites when it is available. The appraisal values equipment and the operation separately from any property, and a lender will want the study's sales assumptions to reflect a tight, small-state market where a single competing opening can matter.