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

What lowers the floor in Washington

Washington limited-service restaurants took 661 loans through the 7(a) program between FY2017 and FY2026, worth $278.5 million; the class sits 2 of 39 in Washington by asset class, and the state ranks 10 for the program. The cell's distinguishing metric is the cancellation floor, which sits at 7.5% of FY2017 to FY2024 approvals, and 8.3% when undisbursed loans count as cancelled. The median loan of $270,000 is 0.91x of the 7(a) median for the class nationally, and the central half of loans starts at $150,000 and stops at $496,000.

Charge-offs and brand mix

For 283 loans that disbursed in FY2017 to FY2021, 4.9% have been charged off to date and 3.2% within five years of approval; these are floors that open loans can still lift. Franchise loans make up 23.9%, which leaves most Washington quick-service loans in independent hands.

Lenders and counties

Hanmi Bank holds 66 loans worth $21.9 million, Columbia Bank 40 worth $10.9 million, KeyBank National Association 36 worth $25.7 million, GBC International Bank 33 worth $12.8 million and Banner Bank 32 worth $9.6 million. The list reflects current holders as SBA records them. King County has 260 loans, Pierce 89, Snohomish 87, Clark 34 and Spokane 32, which shows how concentrated the book is in a few counties.

Steady volume

Annual approvals have stayed within a band from 53 to 86 loans, with the FY2025 peak at 86 loans and $42.9 million, so the series has been steady rather than swinging. A study should treat that range as the recent record of the class in Washington and size its own volume assumptions against it, not against a single strong year.

Testing a Washington quick-service plan

A quick-service study for Washington should test the daypart mix, the drive-through or counter format, and the competitive density within a short drive of the site, particularly in King and Pierce where the loans cluster. It should compare wage costs and the occupancy cost per month with expected sales, set the project's total cost against a median near the figure here, and show coverage with sales under plan. If the concept is franchised, the royalty and the franchisor's approval of the site belong in the debt service model, and the appraisal should say how much value is in leasehold improvements and equipment.