SBA 7(a) Restaurant Feasibility Study in Idaho

A median at the national mark

Idaho's table-service restaurants borrow at almost exactly the national scale: a $250,000 median is 1.02x the nationwide figure. SBA approved 169 loans across FY2017 to FY2026, worth $75.5 million in gross dollars, with $58,300 to $561,800 bracketing the middle half of the book. Idaho ranks 37th among states for the program by count, but restaurants are first of 39 in Idaho's own classes. Franchise units account for 7.1% of the loans.

Outcomes

Idaho cancellations touch 7.0% at the least, with the same 7.0% as the upper bound, for approvals through FY2024. Of 73 funded loans, 5.5% are charged off to date and 4.1% inside five years. A cohort this small swings widely on a few failures, and open loans can still add, so treat both as floors.

Who holds the loans, and where

Zions Bancorporation, National Association holds 21 loans worth $5.0 million, and Glacier Bank holds 18 worth $9.8 million. Idaho Central CU holds 12 worth $9.6 million, U.S. Bank, National Association 12 worth $1.8 million, and the list ends with Wells Fargo Bank National Association at 10 worth $4.0 million. A credit union ranks alongside the banks, which a borrower comparing lenders might note. The table gives holders, not their practices. Ada County has 57 loans, Kootenai 26, Canyon 14 and Bonner 12, so the Boise area and the northern panhandle account for most of the lending. Approvals fell to 10 in FY2020 and have held at 20 a year since FY2024.

What an Idaho restaurant study must test

A study begins with the purchase being financed, whether an acquisition, a build-out, equipment or working capital. It should test trade-area demand in a state where customers in the Boise area and in the northern counties differ, the seasonal swing from tourism and skiing, and the supply of kitchen and floor staff. Rent against sales and competing concepts need their own lines. A median near $250,000 means many projects are modest, but the 5.5% charge-off floor shows that modest does not mean safe. Carry the loan payment on cautious covers and a slow first year, and be ready for an appraiser to test goodwill against earnings.