SBA 7(a) Quick Service Restaurant Feasibility Study in North Carolina

A brand-driven book at above-national loan size

North Carolina limited-service restaurants account for 493 loans and $299.2 million from SBA 7(a), FY2017 to FY2026. Brands account for 64.5% of the loans, so this is a franchise-led program, and the median of $405,000 is 1.36x the 7(a) median for limited-service restaurants nationwide. The middle band of loans is $205,500 to $647,000. On rank, North Carolina is 13 for the program and class, while the class stands 2 of 39 inside the state.

Lenders: an unusual dollar leader

The Huntington National Bank is first by count with 64 loans for $17.8 million, but Live Oak Banking Company, with 31 loans, carries $44.2 million, far more per loan. United Community Bank has 19 loans and $16.0 million, Pinnacle Bank 17 and $12.7 million, and SouthState Bank, National Association 16 and $6.3 million. A table sorted by count hides that Live Oak's average ticket is the largest. As SBA lists them, these are present holders, so read them as books. Wake County has 100 loans and Mecklenburg 88, a long way ahead of Onslow, Durham and New Hanover at 23, 22 and 22.

Floors

The cancellation floor is 12.0%, and 14.4% when undisbursed loans are counted. In a cohort of 201 loans from FY2017 to FY2021, 6.5% are charged off to date, with 3.5% charged off during the first five years. The gap between 12.0% and 14.4% shows how many approved loans had not yet funded when the data were drawn.

Volume

Annual loans reached 70 in FY2025, with $46.7 million, and fell back to 48 in FY2026. The FY2020 low of 32 loans is the one clear break in an otherwise upward line.

Testing a North Carolina quick-service loan

The study of a quick-service restaurant in North Carolina must test traffic and visibility at the specific pad, the drive-through stacking, and the distance to the nearest sibling store, because franchisors often protect territory. It should show sales per square foot against rent, royalty and advertising fees, wage costs, and the build-out against a typical loan above the national class median. Coverage must survive weak sales in the first year, and the appraisal should treat the franchise agreement's transfer and term provisions as part of the credit story. For a conversion of an existing store, the seller's actual sales should be used.