SBA 7(a) Restaurant Feasibility Study in South Dakota

Size and standing of the South Dakota full-service restaurant record

The South Dakota full-service restaurant cell holds 54 loans under SBA 7(a), $17.5 million in all, from FY2017 through FY2026. South Dakota is 49 among states by full-service restaurant loan count, while South Dakota holds full-service restaurant at 1 of 39 among its classes. South Dakota borrowers took a median of $201,300, which is 0.82x of the figure that full-service restaurant borrowers elsewhere receive, in South Dakota, below the SBA 7(a) norm for full-service restaurant. The central half of South Dakota loans starts at $121,000 and, for full-service restaurant, tops out near $377,375; 11.1% of South Dakota full-service restaurant loans carry a franchise flag.

South Dakota holders and counties

The First National Bank in Sioux Falls (11 loans, $4.1 million), First National Bank of Omaha (6 loans, $1.6 million) and First Bank & Trust (5 loans, $3.1 million) head the South Dakota full-service restaurant holder table. SBA lists each South Dakota full-service restaurant holder as current. Geographically, Minnehaha (19), Pennington (9), Brown (3), Hanson (3) and Lawrence (3) lead South Dakota full-service restaurant lending.

How the full-service restaurant pipeline moved

South Dakota full-service restaurant approvals per year: FY2017 9 ($1.9 million), FY2018 5, FY2019 6, FY2020 6, FY2021 1 ($559,600); then for full-service restaurant in South Dakota FY2022 6, FY2023 7, FY2024 4, FY2025 4, FY2026 6. The top South Dakota dollar year, $1.9 million, was FY2017.

How South Dakota loans ended up

South Dakota full-service restaurant cancellations run at a floor of 13.6% for FY2017 to FY2024 approvals, or 13.6% if undisbursed full-service restaurant lending is counted in. Charge-offs of South Dakota full-service restaurant loans are withheld: South Dakota funded too few full-service restaurant loans in South Dakota, so no rate is printed in South Dakota for FY2017 to FY2021, and the full-service restaurant gap is not a zero.

South Dakota: what a restaurant study has to prove

Restaurants fail for reasons a study can probe in advance. In South Dakota it should test the trade area's daytime and evening population, nearby competing concepts, and the sales per seat the menu and price point need, then show a food-and-labor cost structure realistic for a small market. Set build-out or purchase cost beside a $201,300 median loan, and coverage must hold through a slow opening and seasonal dips. A lender will check lease terms closely, and an appraiser rarely credits restaurant income on its own.

South Dakota dining: scope of the record

The restaurant code carries no recorded caveat here, so the South Dakota totals describe full-service dining directly. Loss history is withheld, so the study's own stress case should assume a slow opening and thin first-year traffic.