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

Franchising defines the cell

Most quick-service restaurants in Georgia that borrow under SBA 7(a) are franchised: 61.6% of the 859 loans approved over FY2017 to FY2026 carry the flag. Those loans add up to $469.8 million in gross dollars. Georgia is sixth among states for the program by count, and limited-service restaurants are second of 39 among Georgia's classes, behind only table-service restaurants. A median of $351,000 is 1.18x the median such borrowers take nationally, and half of the loans lie between $220,000 and $600,700.

Who holds them

The Huntington National Bank has 100 loans worth $35.7 million, and Metro City Bank 62 worth $23.1 million. SouthState Bank, National Association holds 29 worth $18.2 million, United Community Bank 28 worth $19.8 million and Live Oak Banking Company 26 worth $25.6 million. Live Oak has the fewest loans of the five but the highest dollars for each one, which a franchise buyer comparing banks should notice. SBA's tables show holders, so none of this speaks to any bank's habits. Fulton County has 159 loans, Gwinnett 130, Cobb 67 and DeKalb 65. The count peaked at 123 in FY2025 after a low of 57 in FY2020.

Floors on cancellation and loss

For approvals from FY2017 to FY2024, cancellations were at least 12.3%, rising to 12.9% if undisbursed loans are counted. Of the 359 loans funded in FY2017 to FY2021, 5.8% are charged off to date and 3.3% were gone by the fifth year. Those are minimums while loans remain open, and the later approval years in the cohort have had the least time to show trouble.

A Georgia quick-service study

The guarantee is general-purpose, so the study should name the use of funds: franchise fee, build-out, equipment or a purchase. Where franchising is the norm, the franchise agreement is a core document, because territory, remodel schedules and royalties all move the break-even. The study should check drive-through capacity and traffic at the pad, how many competing brands sit nearby, and the sales per unit a franchisor reports for comparable stores. Test the loan payment against the low end of those reported sales rather than the average. An appraiser will value the unit on cash flow after royalties.