SBA 7(a) Warehouse Feasibility Study in Texas

Third among states, with no lender table

Texas stands 3 among states in public-warehousing loans under 7(a), with 39 approvals from FY2017 to FY2026 worth $40.8 million, although the class sits only 27 of 39 within Texas asset types. This cell prints no lender table, so nothing here says who holds the loans; the figures describe the loans, and the counties. Harris County carries 10 of them, then Dallas and Rockwall with 3 each, and Bell, Collin, Guadalupe and Montgomery with 2 each.

A median that beats the class nationally

The median loan of $500,000 is 1.43x the class median under 7(a) nationwide, and the central half of Texas loans reaches from $228,600 to $1.6 million. No franchise brands are involved: 0.00%. Volume has been lumpy. FY2021 stands out with 9 loans and $8.4 million, FY2018 produced just 3 loans but $7.3 million, and FY2017 had 7 loans on $3.0 million.

Outcomes, and what the code leaves out

Texas cancellations reached 21.9% of the earlier approvals, and loans not yet disbursed leave that unchanged. No charge-off rate is printed, as too few early loans funded, and that gap is not a zero. The code covers public warehousing only: a company that owns a warehouse for its own manufacturing or retail falls under its user's own industry, which keeps a distribution building run by its owner out of these figures.

What a Texas warehouse study tests

Public warehousing earns by renting space and services to others, so the study must prove that tenants exist. It should measure the logistics corridor the building serves, nearby industrial vacancy and asking rents, truck access, dock count, clear height and the age of competing buildings. The business may sell storage, handling or fulfillment, and the study should say which, and show the contract terms that give revenue stability. Construction or purchase cost has to be reconciled with the $500,000 median and with rent per square foot. With roughly a fifth of approvals cancelled, closing risk matters: environmental history, zoning for outdoor storage and the sequence of permits. Payments should still be covered if tenants arrive slowly, and the valuation will rest on market rent for comparable industrial space.