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

Chicago-centred, and mostly franchised

On the state table Illinois sits ninth for limited-service restaurant lending under 7(a), and what defines the record is how much of it is branded. Over FY2017 to FY2026 the file holds 696 loans worth $350.0 million, and 53.0% went to franchised units. Quick service takes second place of 39 on the Illinois class table, so this is one of the state's main routes into SBA 7(a) credit. The median loan is $325,000, 1.09x the program's median for the class across the country, with the central half between $127,250 and $578,350.

Florida lenders and where the shops are

The Huntington National Bank holds 156 loans worth $44.2 million, Byline Bank 90 worth $82.0 million, Village Bank and Trust, National Association 35 worth $13.0 million, U.S. Bank, National Association 28 worth $3.3 million and Midland States Bank 19 worth $10.2 million. Counts and dollars differ by lender, and the tally follows loans on each institution's books without showing what any of them requires. Cook County accounts for 306 loans, DuPage 67, Lake 47, Will 46 and Kane 31, with McHenry at 30. Outside the Chicago area, Saint Clair has 21, Sangamon 12, Winnebago 12 and Champaign 11. Yearly approvals ran from 49 in FY2022 to 88 in FY2024 and again in FY2025, falling to 53 in FY2026.

Cancellations and losses

Across FY2017 to FY2024 approvals, cancellation starts at 11.2% but climbs to 14.2% once undisbursed loans are treated as cancelled, a wide gap hinting that many Illinois approvals were still waiting to fund. Disbursements in that window, 301 loans, show 6.6% charged off to date and 5.3% failed inside five years, and every one of these is a floor.

Franchise terms and Illinois winters

With over half the loans franchised, the study must treat the franchise agreement as part of the business: the initial fee, royalty and advertising contribution, the required remodel schedule, the franchisor's approved sites and the territory. Beyond that comes the usual local work. Count the drive-through traffic, the lunch and dinner population, the competing brands within a short distance and the labour pool. Winter weather in Illinois affects walk-in traffic, and the sales forecast should show it. A loan near the $325,000 median covers a conversion or a smaller unit, while a ground-up building will reach well past $578,350 and needs justification. Debt service should be covered on sales below the franchisor's average, and a lender will weigh the operator's experience.