SBA 7(a) Restaurant Feasibility Study in Connecticut

The first class in the state, at half the national ticket

Full-service restaurants are the leading asset class in Connecticut for SBA 7(a), ranked 1 of 39, though the loans are small. The program approved 379 of them between FY2017 and FY2026, worth $111.8 million, which places the state 23 among states. A $126,000 median is only 0.51x of the nationwide 7(a) median for full-service restaurants, and half the loans fall from $50,000 to $300,000. Franchise brands account for 4.2%, so most of these loans go to independent owners. Dollars per year are modest, so a handful of failures can visibly dent the state record, and a lender reading the page should weigh the sample before generalising.

A lender field led by Santander

Santander Bank, National Association has 76 loans worth $20.0 million, Manufacturers and Traders Trust Company 57 worth $7.5 million, Liberty Bank 41 worth $5.6 million, TD Bank, National Association 26 worth $990,600 and KeyBank National Association 21 worth $2.0 million. Those are present holders as SBA lists them, which says nothing about what any institution requires. By planning region, Capitol leads with 69 loans, South Central Connecticut follows with 49, Hartford with 44, Fairfield with 39 and Western Connecticut with 38.

Outcomes and floors

Connecticut restaurant approvals through FY2024 were cancelled at 14.6% or more, and 16.3% counting those never disbursed. Of 147 loans in the earliest funded cohort, the charge-off floor to date is 6.1%, with 4.1% inside five years of approval. Every figure here is a floor, and open loans may add to them, so a lender should not call any of them final. Volume was 48 loans in FY2017, 18 in FY2020, 47 in FY2025 and 38 in FY2026, a complete fiscal year.

What a Connecticut restaurant plan has to prove

With small loans, the feasibility case is about the operating model. A study should test covers and check average against rent per square foot in the specific town, labour cost under Connecticut wage rules, food cost, and a break-even point reachable in the first year. It must show the lease runs long enough to amortise the build-out and that debt service is covered with sales well below the owner's hope. Seasonality, parking and liquor licensing belong in the schedule. The cancellation floor argues for confirming permits, a lease and equipment quotes before relying on an approval.