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

Idaho's limited-service restaurants under 7(a)

Limited-service restaurants stand 2 of 39 among the asset classes SBA financed in Idaho, a placing that shows how much counter-service dining matters locally. From FY2017 through FY2026 the agency approved 138 loans in the class under its 7(a) program, adding up to $62.1 million. Yet the state's rank among states for the pairing is only 34 by loan count, so the class matters to Idaho far more than Idaho matters to the national record. A median loan of $309,750 lands at 1.04x the nationwide figure, essentially in line, and the middle band runs from $103,750 to $565,300. Neither parent differs clearly from this cell on any measure we test, so local detail carries the page.

Franchise weight and lenders

Franchising is the feature that sets quick service apart: 52.2% of these Idaho loans carry a franchise, which makes the typical Idaho borrower a franchisee operating inside a brand's system, with its fees, build specification and approved supplier list. Glacier Bank holds 23 loans worth $8.2 million, Idaho Central CU 18 worth $7.0 million, and Zions Bancorporation, National Association 11 worth $8.8 million, an average ticket well above its neighbours. The Huntington National Bank and Columbia Bank hold 8 loans apiece, for $2.0 million and $1.1 million. Ada County dominates with 50 loans, Kootenai follows with 32 and Canyon with 16, while Bonneville has 7 and Bannock, Bonner, Madison and Twin Falls 4 each.

This is the cell where the loss record is least comfortable. Idaho loans approved from FY2017 through FY2024 left the pipeline unfunded at a floor of 10.0%, reaching 10.9% if undisbursed loans are read as dropouts. Of 56 Idaho loans funded from FY2017 through FY2021, a floor of 7.1% has been written off so far, with 3.6% lost inside the first five years. Both measures are minimums, since open loans can still fail, and restaurants tend to fail in clusters when food costs or wages move against thin margins.

Testing an Idaho counter-service request

A study of a limited-service restaurant in Idaho should start where the franchise share points: the franchisor's disclosure documents, required build-out, royalty and advertising obligations, and the unit economics of comparable operating stores. It then has to prove the site, since traffic counts, drive-through stacking, visibility and a competitive set within a short drive decide sales, and no loan can fix a weak corner. The budget should reconcile equipment, leasehold improvements and working capital with a loan near the class median, and payments should be covered in a downside year with lower sales and higher labour. A lender will also expect the appraisal to split property value from business value, and the study should state whether the borrower owns or leases the property.