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

Two counties and a heavy franchise share

Nevada's limited-service restaurant lending is concentrated and franchise-heavy. The program approved 236 loans between FY2017 and FY2026, worth $99.5 million, ranking the state 26 among states, and the class is 2 of 39 among Nevada asset classes. Franchise brands took 56.4% of loans. At $335,000 the median is 1.13x the national figure for limited-service concepts under 7(a), and half the loans lie between $123,300 and $531,000. The record names no metric on which Nevada stands apart, so the figures are best read as ordinary for the class.

Clark County dominates

Clark County has 184 loans and Washoe County has 36. Lander, Lyon and Mineral counties have 3 each, Carson City and Douglas 2 each. That is a very narrow geography, and a feasibility study outside those two counties has almost no local precedent in this record. The lender table lists U.S. Bank, National Association with 23 loans worth only $1.1 million, Zions Bancorporation, National Association with 20 loans and $10.6 million, then The Huntington National Bank at 17, America First Federal Credit Union (16 loans, $7.5 million) and, last, Wells Fargo Bank National Association with 14 loans. In this table each lender is the current holder of the loans listed, as SBA reports it.

Outcome floors that run high

Cancellation reaches at least 15.1% of approvals through FY2024, and no different if loans never disbursed are included. Within 93 funded Nevada loans the charge-off floor to date is 8.6%, with 5.4% reached inside five years of approval. Open loans may add to either floor. Annual volume was 30 in FY2019, only 10 in FY2020, 38 loans in FY2025 with $9.7 million, and 13 loans with $5.3 million in FY2026, a complete fiscal year. The counts swing a good deal from year to year, which is a risk the study must address directly.

The Nevada quick-service study

A Nevada study should estimate sales from the specific trade area, separate resident and visitor customers, and show a downturn year. It should test the franchise agreement fees and required remodel schedule, the drive-through or other format, parking, and the labour needed for hourly roles. Rent can swamp a thin margin, so break-even sales per square foot belong near the top of the report. Debt service coverage ought to hold at sales below the franchisor's average, and an appraiser will review the franchise term and the lease length.